Strong Q3 result: 10% organic growth

Strong Q3 result: 10% organic growth
Press Release | Jul 05. 2017 06:07 GMT

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 20176 April 2017
Organic revenue growth9-10%8-10%
EBIT margin before special itemsslightly increasingslightly increasing
Free cash flow before acquisitions, divestments and special itemsaround EUR 175 millionaround EUR 175 million

Please see the full report for further details.


Contact

Camilla Lercke, Head of Media Relations

+45 53 39 23 84
 


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.

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