Annual results: 8% organic growth

After solid growth in the fourth quarter Chr. Hansen announces strong full-year results that match the expectations for the year.

“Chr. Hansen continues to deliver solid growth and strong margins. In 2013/14, organic growth was 8%, while the EBIT margin before special items ended at 27.1%. The Cultures & Enzymes Division and the Health & Nutrition Division delivered solid organic growth of 8% and 15% respectively, while the Natural Colors Division delivered organic growth of 2% excluding carmine price effect.

The implementation of our Nature’s No. 1 strategy saw good progress during 2013/14 and we will take this further in 2014/15, with increasing investment in our new strategic initiatives for biological plant protection and the establishment of a dedicated sales and application organization in the Natural Colors Division,” says CEO Cees de Jong.

2013/14 in brief
• Revenue EUR 756 million, compared to EUR 738 million in 2012/13
• Organic growth 8%
• EBIT before special items and impairments EUR 205 million, compared to EUR 201 million in 2012/13
• EBIT margin before special items and impairments 27.1%, compared to 27.2% in 2012/13. Negative impact of 0.9 percentage point from lower level of capitalization of development expenditures

Fourth quarter 2013/14 results
• Revenue EUR 205 million, up 6% on Q4 2012/13
• Organic growth 8%
• EBIT margin before special items 30.0%, compared to 30.7% in Q4 2012/13

Outlook for 2014/15

For 2014/15 we expect organic revenue growth of 7-9% and an EBIT margin before special items is expected to be above 26.5%. Research & development expenditures incurred (% of revenue): 7-8%

Free cash flow before acquisitions and divestments: above EUR 130 million