After solid growth in the fourth quarter Chr. Hansen announces strong full-year results that match the expectations for the year.
“Chr. Hansen continues to deliver solid growth and strong margins. In 2013/14, organic growth was 8%, while the EBIT margin before special items ended at 27.1%. The Cultures & Enzymes Division and the Health & Nutrition Division delivered solid organic growth of 8% and 15% respectively, while the Natural Colors Division delivered organic growth of 2% excluding carmine price effect.
The implementation of our Nature’s No. 1 strategy saw good progress during 2013/14 and we will take this further in 2014/15, with increasing investment in our new strategic initiatives for biological plant protection and the establishment of a dedicated sales and application organization in the Natural Colors Division,” says CEO Cees de Jong.
2013/14 in brief
• Revenue EUR 756 million, compared to EUR 738 million in 2012/13
• Organic growth 8%
• EBIT before special items and impairments EUR 205 million, compared to EUR 201 million in 2012/13
• EBIT margin before special items and impairments 27.1%, compared to 27.2% in 2012/13. Negative impact of 0.9 percentage point from lower level of capitalization of development expenditures
Fourth quarter 2013/14 results
• Revenue EUR 205 million, up 6% on Q4 2012/13
• Organic growth 8%
• EBIT margin before special items 30.0%, compared to 30.7% in Q4 2012/13
Outlook for 2014/15
For 2014/15 we expect organic revenue growth of 7-9% and an EBIT margin before special items is expected to be above 26.5%. Research & development expenditures incurred (% of revenue): 7-8%
Free cash flow before acquisitions and divestments: above EUR 130 million
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. Sustainability is an integral part of Chr. Hansen’s vision to improve food and health. In 2019 Chr. Hansen was ranked as the world’s most sustainable company by Corporate Knights thanks to our strong sustainability efforts and our many collaborative partnerships with our customers. 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.