Press release -
Accelerated growth and upward adjustment of outlook
Chr. Hansen experienced solid growth in its first quarter from September 1, 2010 to November 30, 2010. Compared to the same period last year Chr. Hansen’s revenue increased 22%, corresponding to organic growth of 16%. Chr. Hansen raises its expectations to revenue growth this financial year.
- Revenue amounted to EUR 156 million, an increase of 22%
- Organic growth of 16%
- EBITDA before special items increased by 15% to EUR 45,7 million
- Operating profit (EBIT) before special items increased by 22% to EUR 35 million
- Operating profit (EBIT) margin before special items was 23%, unchanged from Q1 2009/10
“I am very pleased to report that based on the performance in Q1 and in particular the strong evolution in our color business the organic revenue outlook for the group for 2010/11 has been revised upwards, from 8-10% to 11-13%,” says CEO Lars Frederiksen. “The financial year 2010/11 has started positively with strong organic growth in all three divisions. Strong demand for DVS® cultures is driving results in Cultures & Enzymes. Health & Nutrition benefited from the continued interest for probiotics while the pronounced consumer preference for natural colors resulted in organic growth of 46% in Colors & Blends.”
Growth in all divisions and regions
The Cultures & Enzymes Division accounted for 60% of group revenue in Q1 2010/11 and revenue growth of 12% compared to the same period last year, corresponding to organic growth of 6%. Growth was driven primarily by yoghurt, cheese and wine cultures, notably in the Asia-Pacific region and North America.
Accounting for 12% of group revenue the Health & Nutrition Division experienced organic growth of 13% and revenue growth of 16% in Q1 2010/11. The division had particularly strong growth from the human health area.
Revenue in the Colors & Blends Division grew by 56% in Q1 2010/11, corresponding to organic growth of 46%, primarily driven by the conversion to natural colors. The Colors & Blends Division accounted for 28% of group revenue.
Chr. Hansen experienced solid revenue growth in all its regions including emerging geographies as well as mature markets.
Expectations for the year
As a consequence of the strong evolution in our color business the outlook for the financial year 2010/11 is revised upwards.
- Revenue for 2010/11 is now expected to grow organically by 11-13% compared to 8-10% in the announcement on 2 November 2010
- EBIT margin before special items is still expected to be above 25% with improvements in all three divisions compared to the full year 2009/10
- The net debt to EBITDA ratio is still expected to decrease to approximately 2.0 times from 2.5 at year end
Please see the Q1 interim report for further details.
Topics
Chr. Hansen is a global bioscience company that develops natural ingredient solutions for the food, nutritional, pharmaceutical and agricultural industries. The products include cultures, enzymes, probiotics and natural colors, and all solutions are based on strong research and development competencies coupled with significant technology investments. Revenue in the 2013/14 financial year was EUR 756 million. The company holds a leading market position in all its divisions: Cultures & Enzymes, Health & Nutrition and Natural Colors. It has more than 2,500 dedicated employees in over 30 countries and main production facilities in Denmark, France, USA and Germany. Chr. Hansen was founded in 1874 and is listed on NASDAQ OMX Copenhagen.
