Strong half-year performance

"We are pleased to have continued the solid sales and earnings growth during Q2 2011/12, delivering 11% organic growth for the first half of 2011/12 (excluding carmine price effect) and a 19% increase in EBIT," comments CEO Lars Frederiksen.

"All our divisions contributed positively and especially the Cultures & Enzymes Division has proved our resilient business model with strong growth despite the continued uncertainty around probiotic health claims in EU. Based on the solid performance in the first half we have narrowed our organic growth target from 7-10% to 8-10% (excluding carmine price effect).

As a result of Chr. Hansen’s strong cash generation the Board of Directors has decided to initiate a share buy-back program of up to EUR 80 million with the purpose to adjust our capital structure by distributing excess capital to the shareholders," says Lars Frederiksen.

Highlights

• Revenue EUR 333 million, up 9% compared to first half 2010/11
• Organic growth 11% (adjusted for change in sales prices to reflect changes in raw material prices for carmine)
• EBIT EUR 83 million, up 19% compared to first half 2010/11. EBIT margin before special items 25% compared to 23% in first half last year
• Q2 2011/12 revenue EUR 165 million, up 7% compared to Q2 last year. Organic growth 9% (adjusted for change in sales prices to changes in raw material prices for carmine). Operating profit (EBIT) margin reached 25% compared to 23% in Q2 last year

Outlook

• As a result of the solid performance in first half the organic growth, excluding effect on sales prices from change in raw material prices for carmine, is now expected to be in the range of 8-10% compared to 7-10% in the announcement on 11 January 2012
• EBIT margin before special items is still expected to be above 26%

Please see the interim report for further details.