Chr. Hansen experienced a slow first quarter but maintains the outlook for the year.
“As expected Chr. Hansen experienced a slow start to the year 2013/14. Organic growth of 2% excluding carmine price effect was negatively affected by timing of orders and the loss of a customer in the Natural Colors Division in Q4 2012/13,” says CEO Cees de Jong.
“The EBIT margin before special items was 25.2%, which is broadly in line with last year, taking into account the negative impact from changed assessment of development costs. We maintain our outlook for the year with organic revenue growth of 7-9% and an EBIT margin before special items above 26%. We continue to implement our new Nature’s No. 1 strategy to take Chr. Hansen to the next level.
Chr. Hansen has a strong balance sheet and remains committed to distributing excess capital to shareholders. To support this, the Board of Directors has decided to initiate a share buy-back program of up to EUR 80 million. The program is planned to be executed during the period from 15 January 2014 to 22 August 2014”.
Highlights Q1 2013/14
• Revenue EUR 171 million, down 4% on Q1 2012/13
• Organic growth 1% (2% excluding carmine price effect)
• EBIT before special items EUR 43 million, compared to EUR 48 million in Q1 2012/13
• EBIT before special items margin 25.2%, down from 26.7% in Q1 2012/13
Outlook for 2013/14
The outlook for 2013/14 is unchanged from the announcement of 23 October 2013, except for the impact from special items on free cash flow.
Organic revenue growth is expected to be 7?9%.
The EBIT margin before special items is expected to be above 26%. Special items amounting to a cost of EUR 8-10 million related to optimization of organization, production footprint and business processes are expected in 2013/14. Special items are expected to impact free cash flow negatively. Including this effect, free cash flow before acquisitions and divestments is expected to be around EUR 110 million.
Please see the interim report for further details:
Chr. Hansen is a leading, global bioscience company that develops natural ingredient solutions for the food, nutritional, pharmaceutical and agricultural industries. We develop and produce cultures, enzymes, probiotics and natural colors for a rich variety of foods, confectionery, beverages, dietary supplements and even animal feed and plant protection. Our product innovation is based on more than 30,000 microbial strains – we like to refer to them as ‘good bacteria’. Our solutions enable food manufacturers to produce more with less – while also reducing the use of chemicals and other synthetic additives – which make our products highly relevant in today’s world. We have been delivering value to our partners – and, ultimately, end consumers worldwide – for over 140 years. We are proud that more than one billion people consume products containing our natural ingredients every day. Revenue in the 2017/18 financial year was EUR 1,097 million. Chr. Hansen was founded in 1874 and is listed on Nasdaq Copenhagen.