Good results across business areas and regions secure upwards narrowing of full-year guidance. Extraordinary dividend announced for pay-out in May.
Continued strong organic growth momentum leads to upwards narrowing of full-year organic growth guidance.
- Q2 2020/21 organic sales growth was 10%, equally split between volume/mix and price, and driven by Health & Nutrition which delivered 14% growth while Food Cultures & Enzymes delivered 8% growth
- Underlying EBIT margin b.s.i.1) of 30.9%, incl. >1%-point negative currency impact, compared to 32.2% in Q2 2019/20. Reported EBIT margin b.s.i. (incl. all acquisition impacts) was 27.0%
- Integration of commercial activities in UAS/HSO is completed and integration of manufacturing is progressing
- HMO capacity expansion in Germany on track, while delays in product registrations and regulatory approvals remain a constraint on market development; the market opportunity long-term is unchanged
- Full-year outlook for organic growth adjusted to 6-8% (previously 5-8%), free cash flow narrowed upwards to EUR 140-160 million, EBIT margin guidance unchanged, and impacts from acquisitions also unchanged from Q1
CEO Mauricio Graber says: “In our second quarter we delivered strong organic growth on a more demanding comparable from last year, with continued good momentum in both business areas. Our business in Asia-Pacific delivered 10% organic growth fueled by Health & Nutrition, providing reassurance that we can grow the region strongly even as the Chinese yogurt market is still in decline. Customer engagement, both in China and globally, remains high despite the current difficulties of in person interactions.
Through the acquisitions we have done, we are building a more balanced business globally between Food Cultures & Enzymes and Health & Nutrition. We’ve continued the integration of the acquired businesses and have recently completed a major milestone in the divestment of Natural Colors, and we are executing our strategy of becoming a focused bioscience company based on a unique microbial and fermentation technology platform.
Following the divestment of Natural Colors, we have initiated the process for paying out an extraordinary dividend of around EUR 116 million, and payment of the dividend is expected to be effected during the month of May.
In Q2 we progressed on our innovation agenda with many new patents, trademarks and registrations, and in Q3 we will be launching the next generation of bioprotection for fermented milks and certain cheeses.
As a result of the strong organic growth in the first half of 2020/21, and despite the uncertainties lingering from COVID-19, we have narrowed upwards our full-year outlook for organic growth, and we expect that Q4 to be the stronger of the two remaining quarters, primarily as Q3 of last year had a tailwind effect from customers building COVID-19 related safety inventories.”
Outlook for 2020/21
Organic revenue growth | 6-8% |
EBIT margin before special items | 27-28% |
Free cash flow before special items, acquisitions and divestments | EUR 140-160 million |
The guidance for EBIT margin before special items and for free cash flow before acquisitions and special items assumes constant currencies from the time of this announcement and for the remainder of the financial year.
Chr. Hansen es una empresa global y diferenciada de biociencia que desarrolla soluciones con ingredientes naturales para las industrias de alimentación y nutrición, farmacéutica y agrícola. En Chr. Hansen, nos encontramos en una posición privilegiada para impulsar el cambio positivo mediante soluciones microbianas. Desde hace casi 150 años, trabajamos para facilitar la agricultura sostenible, alimentos mejores y una vida más sana para más personas de todo el mundo. Nuestras plataformas de tecnología microbiana y fermentativa, incluida nuestra amplia colección de unas 50.000 cepas microbianas, tienen potencial para marcar un antes y un después. Al satisfacer las necesidades de los clientes y las tendencias internacionales, seguimos revelando el poder de las bacterias beneficiosas para responder a dificultades globales, como el desperdicio de alimentos, la salud en el mundo y el uso excesivo de antibióticos y plaguicidas. Como empresa de biotecnología más sostenible del mundo, llegamos a más de mil millones de personas cada día. Con el respaldo de nuestro legado de innovación y curiosidad para impulsar la ciencia, nuestro propósito de cultivar un mundo mejor naturalmente, «Grow a better world. Naturally», está en la esencia de todo lo que hacemos.
