Strong performance keeps Chr. Hansen on track

Strong performance keeps Chr. Hansen on track
Press Release | Apr 09. 2015 09:11 GMT

Chr. Hansen saw strong organic revenue growth of 11% in the first half of 2014/15: Cultures & Enzymes Division (8% organic growth), Health & Nutrition Division (24%) and Natural Colors Division (8%). EBIT before special items increased by 9% to EUR 96 million.

During the first half of 2014/15, Chr. Hansen was positively impacted by the strengthening USD, while the negative impact from inflation, especially in Russia and Ukraine, was offset by using EUR-based pricing.

EUR millionQ22014/15Q22013/14Growth1H2014/151H2013/14Growth
EBIT b.s.i.52.545.017%96.088.19%
Profit for the period35.527.131%65.356.216%
Free cash flow*41.635.717%11.25.2115%
Organic growth12%10%11%6%
Gross margin50.4%52.4%50.8%52.4%
EBIT margin b.s.i.25.2%24.8%24.2%25.0%
ROIC excl. goodwill32.6%30.4%30.6%29.8%

* Before acquisitions, divestments and special items.

“I’m pleased with our performance in the first half of 2014/15 with strong growth in both microbial-based divisions. It’s also promising to see the higher growth in the Natural Colors Division during Q2. The Nature’s No. 1 strategy continues to guide the direction for the company, and we've seen good progress within our strategic initiatives,” says CEO Cees de Jong.

“We continue to invest in innovation and capacity to drive the future growth of the company. Our free cash flow generation remains strong and, consequently, it is our intention to pay out an interim dividend totaling EUR 115 million in connection with the release of our interim report for Q3 2014/15.”

“We reiterate our expectations for 2014/15 of organic revenue growth of 7-9% and an EBIT margin before special items above 26.5%.”

Outlook for 2014/15
The outlook for the Chr. Hansen Group for 2014/15 is unchanged compared to the announcements of 22 October 2014 and 21 January 2015, whereas the outlook for the divisions has been further specified.

Organic revenue growth: 7-9%
Research & development expenditures incurred (% of revenue): 7-8%
EBIT margin before special items: Above 26.5%
Free cash flow before acquisitions, divestments and special items: Above EUR 130 million

Chr. Hansen is a leading, global bioscience company that develops natural 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, animal feed, and plant protection. Our product innovation is based on around 40,000 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 makes 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 145 years. We are proud that more than one billion people consume products containing our natural ingredients every day. Chr. Hansen was founded in 1874 and is listed on Nasdaq Copenhagen.

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