“The progress in 2014/15 was very satisfactory and with organic growth of 10%, we delivered at the upper end of our Nature’s No. 1 growth ambition. The Cultures & Enzymes Division and the Health & Nutrition Division delivered solid organic growth of 9% and 13% respectively. The performance of the Natural Colors Division improved during the year, and with organic growth of 9% for the full year, the division delivered in line with our long-term ambition. The EBIT margin before special items ended at 27.1%, unchanged from 2013/14, as a positive impact from higher sales volume and the stronger USD was offset by increased research & development expenditures related to biological plant protection and the human microbiome initiative,” says CEO Cees de Jong.
“For 2015/16, we expect organic revenue growth of 8-10% and an EBIT margin before special items above the 27.1% in 2014/15.”
2014/15 in brief
- Revenue of EUR 859 million, compared to EUR 756 million in 2013/14, corresponding to organic growth of 10%. Revenue was positively impacted by changes in exchange rates, primarily by the appreciation of USD
- EBIT before special items of EUR 233 million, compared to EUR 205 million in 2013/14. The EBIT margin before special items was 27.1%, unchanged from 2013/14
- Income taxes of EUR 57 million, equivalent to an effective tax rate of 26%, compared to 27% in 2013/14
- Profit for the year of EUR 163 million, compared to EUR 132 million in 2013/14
- Free cash flow of EUR 151 million, compared to EUR 115 million in 2013/14
- Net interest-bearing debt of EUR 488 million, or 1.7x EBITDA, compared to EUR 404 million, or 1.6x EBITDA, at 31 August 2014.
Q4 2014/15 results
- Revenue of EUR 234 million, up 14% on Q4 2013/14, corresponding to organic growth of 11%
- EBIT margin before special items of 31.1%, compared to 30.0% in Q4 2013/14
- Free cash flow of EUR 86 million, compared to EUR 73 million in Q4 2013/14.
- Interim dividend of EUR 115 million declared in July 2015
- An ordinary dividend for 2014/15 of EUR 0.63 (DKK 4.70) per share, or a total of EUR 82 million is proposed. The ordinary dividend is equivalent to 50% of the profit for the year.
Outlook for 2015/16
- Organic revenue growth 8-10%
- Research & development expenditures incurred (% of revenue) 6.5-7.0%
- EBIT margin before special items above 2014/15
- Free cash flow before acquisitions and divestments above 2014/15
The Annual Report for 2014/15 was released today, 21 October 2015, and is available from www.chr-hansen.com.
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.