Financial ambitions until 2024/25
Chr. Hansen remains committed to delivering industry-leading profitable growth and a strong cash flow with focus on spending discipline and capital efficiency.
From 2020/21 to 2024/25, Chr. Hansen aims to deliver:
- Organic revenue growth
Mid- to high single-digit organic growth, averaged over the period. Unchanged from announcement of August 24, 2020.
- EBIT margin before special items
An increase in EBIT margin before special items over the period (to > 30%). The improvement is expected to be based on efficiency gains, scalability benefits and acquisition synergies that will be partly reinvested into the business.
- Free cash flow before special items
Average growth in free cash flow before special items exceeding the average growth in EBIT before special items. The investment into HMO capacity will be phased in line with the development of the business.1
The financial ambitions are based on constant currencies and do not take future acquisitions or divestments into account. The financial ambitions are also based on the current political and economic environment and projections, and any changes may impact the ambitions.
The long-term financial ambitions have been updated on October 14, 2021 to reflect the divestment of the Natural Colors business and the acquisition of Jennewein. The original announcement can be found here.
Non-financial ambitions until 2024/25
As part of its 2025 Strategy, Chr. Hansen has set the following sustainability and non-financial ambitions:
- PRODUCTS: More than 80% of revenue from sustainable products that contribute to the United Nation’s Sustainable Development Goals 2, 3 and 12; 25 million hectares covered with natural solutions (Plant Health and silage inoculants); 200m people consuming Chr. Hansen’s probiotic strains; 2 million tons of yogurt waste reduced.
- PLANET: As part of its commitment to limit global temperature rise, Chr. Hansen aims for 100% renewable energy, circular management of biowaste and recyclable key packaging materials.
- PEOPLE: The Company aims to have introduced 100% of its new employees to its culture model, have a 1:1 equal ratio between female employees and women in management, have a top 25% score in its employee engagement survey and reach a lost-time incident frequency of below 1.5.
Outlook for 2021/22
For our 2021/22 outlook please refer to our latest quarterly report which can be found under Reports & Presentations.