Chr. Hansen realizes strong organic revenue growth of 10% in the first nine months of 2016/17. Based on this we have narrowed our organic revenue expectations for 2016/17 to 9%-10% from previously 8-10%.
“We continue to grow our business with Food Cultures & Enzymes and Health & Nutrition performing slightly better than expected. Based on this we have narrowed our organic revenue expectations for 2016/17 to 9%-10% from previously 8-10%. Both Food Cultures & Enzymes and Natural Colors delivered further improvements in profitability, while Health & Nutrition showed a solid margin progression in Q3. The capacity expansion for dairy cultures in Copenhagen is on track, and we are preparing for the final implementation later this year,” says CEO Cees de Jong.
“It is exciting to see that we are making solid progress in the area of the human microbiome, where we have recently expanded our strain library with lead candidates targeting gastrointestinal, immune and metabolic health. Adding these novel bacterial strains to our portfolio is a major milestone in developing the next-generation probiotics.”
“Given the strong operational performance and free cash flow generation, we have decided to declare an interim dividend totaling EUR 100 million (DKK 5.64 per share). The interim dividend will be paid out on 13 July 2017.”
YTD 2016/17 RESULTS
- Revenue of EUR 780 million, compared to EUR 693 million in 2015/16.
- Food Cultures & Enzymes 9% organic growth
- Health & Nutrition 12% organic growth
- Natural Colors 9% organic growth
- EBIT before special items of EUR 217 million, compared to EUR 189 million in 2015/16. The EBIT margin before special items was 27.9%, compared to 27.2% in 2015/16.
- Profit for the period of EUR 156 million, compared to EUR 128 million in 2015/16.
- Free cash flow before special items and acquisitions of EUR 98 million, compared to EUR 58 million in 2015/16.
Q3 2016/17 RESULTS
- Revenue of EUR 278 million, compared to EUR 250 million in Q3 2015/16.
- Food Cultures & Enzymes 10% organic growth
- Health & Nutrition 14% organic growth
- Natural Colors 6% organic growth
- EBIT before special items of EUR 82 million, compared to EUR 71 million in Q3 2015/16. The EBIT margin before special items was 29.3%, compared to 28.4% in Q3 2015/16.
- Profit for the period of EUR 58 million, compared to EUR 52 million in Q3 2015/16.
- Free cash flow before special items and acquisitions of EUR 68 million compared to EUR 42 million in Q3 2015/16.
OUTLOOK FOR 2016/17
The outlook for 2016/17 has been narrowed to the upper end of the range compared to the announcement of 6 April 2017.
|5 July 2017||6 April 2017|
|Organic revenue growth||9-10%||8-10%|
|EBIT margin before special items||slightly increasing||slightly increasing|
|Free cash flow before acquisitions, divestments and special items||around EUR 175 million||around EUR 175 million|
Please see the full report for further details.
Camilla Lercke, Head of Media Relations
+45 53 39 23 84
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 2016/17 financial year was EUR 1,063 million. Chr. Hansen was founded in 1874 and is listed on Nasdaq Copenhagen.