Solid growth and increased profitability in the first quarter

With organic growth of 7% and an improved EBIT margin in the first quarter of the financial year 2012/2013 Chr. Hansen delivers yet another strong result.

Chr. Hansen delivered organic revenue growth of 7% (excluding carmine price effect) in the first quarter of 2012/13.

“The solid momentum in the Cultures & Enzymes Division continued with 10% organic growth driven by our innovative product portfolio. The Health & Nutrition Division also delivered solid organic growth of 9% while sales in the Natural Colors Division were soft as expected, primarily due to lower carmine prices and volumes. Our operating profit continued to grow faster than revenue and our profitability also increased with an EBIT margin of 26.7% compared to 24.5% in Q1 last year,” comments CEO Lars Frederiksen.

“Our outlook for 2012/13 remains unchanged and we expect organic revenue growth between 8-10% (excluding carmine price effect) and an EBIT margin above 2011/12.”

Highlights
Revenue EUR 179 million, up 7% compared to Q1 2011/12
Organic revenue growth 5% (7% adjusted for lower sales prices to reflect lower raw material prices for carmine)
EBIT EUR 48 million, up 16% compared to Q1 2011/12. EBIT margin 26.7%, up from 24.5% in Q1 2011/12

Outlook 2012/2013
The outlook for 2012/13 remains unchanged compared to the announcement of 31 October 2012. Organic revenue growth, excluding effect on sales prices from change in raw material prices for carmine, is expected to be in the range of 8-10% while organic revenue growth, including the effect from change in raw material prices for carmine, is expected to be in the range of 7-9%. The EBIT margin before special items and impairments is expected to be above last year. Free cash flow before acquisitions and divestments is expected to be at the same level as in 2011/12.

Please see the interim report for further details.