Chr. Hansen adjusts outlook after encouraging Q2 results

Chr. Hansen adjusts outlook after encouraging Q2 results
Press Release | Apr 07. 2016 06:06 GMT

Strong organic revenue growth of 13% in the first half of 2015/16: Food Cultures & Enzymes (13%), Health & Nutrition (2%) and Natural Colors (22%). 

EBIT before special items increased by 23% to EUR 118 million. In Q2, organic growth reached 12%, and EBIT before special items increased by 22% to EUR 64 million. 

During the first half of 2015/16, Chr. Hansen was positively impacted by the strong USD, while the negative impact from inflation in certain countries was partly offset by the use of EUR-based pricing.

“The results in the first half of 2015/16 were encouraging, with strong growth in Food Cultures & Enzymes and Natural Colors and strong improvements in the profitability for both divisions. The modest growth in Health & Nutrition was anticipated and we expect to see higher growth for the division in the second half of the year,” says CEO Cees de Jong.

“During the second quarter we closed the acquisition of NPC, and we commenced the integration of the two companies to ensure we realize the strong potential of the combined business in the coming years.

“To support the Nature’s No. 1™ strategy and to secure future growth in our microbial businesses we have changed our organization by creating a shared backbone for Food Cultures & Enzymes (previously the Cultures & Enzymes Division) and Health & Nutrition covering research & development, production incl. logistics, and IT.

“Based on the results for the first half of the year we raise our expectations for organic revenue growth to 10-12% (previously 9-11%). The EBIT margin before special items is still expected to be above the 27.1% achieved in 2014/15.”


EUR million Q2 2015/16 Q2 2014/15 Growth YTD 2015/16 YTD 2014/15 Growth
Revenue 228.9 208.8 9% 443.3 396.9 11%
EBIT before special items 63.9 52.5 22% 117.9 96.0 23%
Profit for the period 37.4 35.5 6% 76.3 65.3 17%
Free cash flow* 32.5 41.6 -12% 15.9 11.2 42%
Organic growth 12% 12% 13% 11%
Gross margin 52.7% 50.4% 52.5% 50.8%
EBIT margin b.s.i. 27.9% 25.2% 26.6% 24.2%
ROIC excl. goodwill 36.0% 32.6% 34.3% 30.6%


OUTLOOK FOR 2015/16

The outlook for 2015/16 has been adjusted compared to the announcement of 14 January 2016. 

14 January 2016

Organic revenue growth: 9-11%

Research & development expenditures incurred (% of revenue): 6.5-7.0%

EBIT margin before special items above 2014/15: above 2014/15

Free cash flow before acquisitions and divestments: above 2014/15


7 April 2016

Organic revenue growth: 10-12%

Research & development expenditures incurred (% of revenue): Around 7%

EBIT margin before special items above 2014/15: above 2014/15

Free cash flow before acquisitions and divestments: above 2014/15

The Q2 2015/2016 report was released today, 7 April, 2016, and is available from here.


Chr. Hansen is a global, differentiated bioscience company that develops natural ingredient solutions for the food, nutritional, pharmaceutical and agricultural industries. At Chr. Hansen we are uniquely positioned to drive positive change through microbial solutions. We have worked for over 145 years to enable sustainable agriculture, cleaner labels and healthier living for more people around the world. Our microbial and fermentation technology platforms, including our broad and relevant collection of around 40,000 microbial strains, have game-changing potential. Matching customer needs and global trends we continue to unlock the power of good bacteria to respond to global challenges such as food waste, global health and the overuse of antibiotics and pesticides. As the world’s most sustainable biotech company, we touch the lives of more than 1 billion people every day. Driven by our legacy of innovation and curiosity to pioneer science, our purpose – To grow a better world. Naturally. – is at the heart of everything we do.

Share this with: