Solid Q1 supports the outlook for 2022/23
Statement by CEO Mauricio Graber: “The solid results for Q1 show the strength of our business model. Organic growth reached 10%, driven by both volume and pricing initiatives and EBIT b.s.i. increased by 17% supported by the organic growth and exchange rates, leading to an EBIT margin b.s.i. of 24.7%. In light of the Q1 performance we maintain our underlying target for the year but update the outlook to reflect current exchange rate levels.
We will maintain a clear and strong focus on executing on our targets for the financial year 2022/23 while preparing for the proposed merger with Novozymes, which offers an exciting opportunity to create a leading global biosolutions partner based on strong complementary technology platforms, highly dedicated employees and a customer-centric approach.”
Q1 2022/23 highlights
- Revenue amounted to EUR 310 million, up 15% from EUR 268 million in Q1 2021/22.
- Organic growth was 10% in Q1 2022/23 driven by a mix of volume and price growth. Food Cultures & Enzymes organic growth was 8% mainly driven by price initiatives, but with good volume growth above underlying markets. Health & Nutrition organic growth was 12% driven by volume. The Lighthouses (Bioprotection, Fermented Plant Bases, Plant Health and HMO) was impacted by timing of orders and delivered 4% organic growth combined in Q1, while the core businesses delivered 10% organic growth.
- EBIT b.s.i. amounted to EUR 77 million, up 17% from EUR 65 million in Q1 2021/22. The increase was driven by a positive contribution from exchange rates and pricing initiatives, which was partly offset by a negative impact from higher input costs.
- The EBIT margin b.s.i. was 24.7%, up from 24.4% in Q1 2021/22. The improved margin was due to a positive contribution from exchange rates, which was partly offset by continuing inflationary pressures, despite ongoing price initiatives.
- Free cash flow b.a.s.i. amounted to EUR 17 million, down from EUR 55 million last year, as the cash flow from operating activities b.a.s.i. was negatively impacted by a change in working capital and higher taxes paid.
- On December 12, 2022 Chr. Hansen and Novozymes announced that the two companies had entered into an agreement to create a leading global biosolutions partner through a statutory merger. Work has been initiated to seek customary merger control and other regulatory approvals from relevant authorities, while the extraordinary general meeting for shareholder approval is currently expected to be held in the first half of the calendar year 2023.
Outlook
The current exchange rate level for the EUR/USD stands at 1.07 versus 0.97 at the time of the initial 2022/23 outlook provided on October 12, 2022. To reflect the 10% depreciation of the USD we update the outlook for the year regarding the impact from exchange rates on revenue, EBIT margin b.s.i. and cashflow b.a.s.i. The expectations to the underlying business incl. organic growth, EBIT margin b.s.i. and cash flow b.a.s.i. net of exchange rates remain unchanged.
12 January 2023 | 12 October 2022 | |
Organic revenue growth | 7-10% | 7-10% |
Impact from exchange rates on revenue | Neutral | 5% |
EBIT b.s.i. growth compared to revenue | In line | faster |
EBIT margin b.s.i. | 26-27% | 27-28% |
Free cash flow b.a.s.i. | EUR 170-210 million | EUR 190-230 million |
The outlook for 2022/23 is based on actual exchange rates until January 11, 2023, and for the remainder of the year assuming constant exchange rates at the current level of EUR/USD rate of 1.07. For further details on the outlook for 2022/23, please refer to page 10.
Chr. Hansen ist ein weltweit tätiges, breit aufgestelltes Biotechnologie-Unternehmen, das Lösungen mit natürlichen Inhaltsstoffen für die Lebensmittel-, Ernährungs-, Pharma- und Agrarindustrie entwickelt. Bei Chr. Hansen sind wir hervorragend positioniert, um positive Veränderungen durch mikrobielle Lösungen voranzutreiben. Seit fast 150 Jahren setzen wir uns für eine nachhaltige Landwirtschaft, bessere Lebensmittel und ein gesünderes Leben für mehr Menschen auf der ganzen Welt ein. Unsere mikrobielle Plattform und Fermentationstechnologie, einschließlich unseres vielfältigen und beeindruckenden Bestands von rund 50.000 mikrobiellen Stämmen, besitzen bahnbrechendes Potenzial. Abgestimmt auf Kundenbedürfnisse und internationale Trends erschließen wir weiterhin die Kraft guter Bakterien, um auf weltweite Herausforderungen wie Lebensmittelverschwendung, globale Gesundheit und den übermäßigen Einsatz von Antibiotika und Pestiziden zu reagieren. Als das weltweit nachhaltigste Biotechnologie-Unternehmen berühren wir jeden Tag das Leben von mehr als 1 Milliarde Menschen. Unser Ziel „Grow a better world. Naturally“ wird angetrieben durch unsere Innovationsgeschichte, Neugierde und Pionierarbeit in der Wissenschaft und ist das Herzstück von allem, was wir tun.