Encouraging performance in the first nine months

Encouraging performance in the first nine months
Press ReleaseJul 01. 2015 06:09 GMT

Chr. Hansen realizes strong organic growth of 9% in the first nine months of 2014/15, narrows organic revenue expectations to 8-9% and declares interim dividend to shareholders.

Chr. Hansen saw solid organic revenue growth of 9% in the first nine months of 2014/15: Cultures & Enzymes Division 8%, Health & Nutrition Division 17% and Natural Colors Division 7%. EBIT before special items increased by 12% to EUR 160 million. Revenue measured in EUR increased by 13%, as Chr. Hansen was positively impacted by the appreciation of the USD.

EUR million Q3 2014/15 Q3 2013/14 Growth YTD 2014/15 YTD 2013/14 Growth
Revenue 228.1 198.1 15% 625.0 550.9 13%
EBIT* 63.8 55.0 16% 159.8 143.2 12%
Profit for the period 45.7 37.4 22% 111.0 93.7 18%
Free cash flow** 53.8 41.2 31% 65.0 46.5 40%
Organic growth 7% 10% 9% 7% 9%
Gross margin 52.4% 50.5% 51.4% 51.7%
EBIT margin* 28.0% 27.8% 25.6% 26.0%
ROIC excl. goodwill 39.0% 35.8% 33.8% 32.1%

* Before special items.

**Before acquisitions, divestments and special items

“The performance in the first nine months of 2014/15 was encouraging with good progress across our divisions and strategic initiatives. Based on this we have narrowed our organic revenue expectations for 2014/15 to 8-9% (previously 7-9%). The EBIT margin is still expected to be above 26.5%, while free cash flow is now expected to be around EUR 150 million (previously above EUR 130 million)” says CEO Cees de Jong.

“Given the strong operational performance and free cash flow generation, we have decided to declare an interim dividend totaling EUR 115 million (DKK 6.57 per share) with a pay-out date of 9 July 2015.”


OUTLOOK FOR 2014/15

The outlook for 2014/15 has been adjusted compared to the announcements of 9 April 2015 and 22 October 2014.

1 July 2015 

Organic revenue growth:   8-9% 
Research & development expenditures incurred (% of revenue):   around 7% 
EBIT margin before special items:   above 26.5% 
Free cash flow before acquisitions, divestments and special items:  around EUR 150 million 

9 April 2015

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

Please see the YTD 2014/15 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.

NewsAttachments