Chr. Hansen’s Q3 in line with expectations: 4% organic growth

Chr. Hansen’s Q3 in line with expectations: 4% organic growth
Chr. Hansen is progressing in transforming into a fully-focused bioscience company, based on its unique microbial and fermentation technology platforms.
Press Release | Jul 08. 2021 06:03 GMT

On track to deliver ambition for the year, outlook for 2020/21 unchanged

  • Q3 2020/21 organic sales growth was 4%, equally split between volume/mix and price. The Q3 organic growth was impacted by a reduced contribution from EUR-based pricing compared to the first half, and a higher comparable, as Q3 last year was positively impacted by COVID-19 related customer inventory build-up. YTD organic growth at 8% and on track to deliver 6-8% organic growth for the year.
  • Integration of commercial activities in UAS/HSO has been completed and integration of manufacturing is progressing with good sales momentum in Q3.
  • Q3 EBIT margin b.s.i. of 29.3%, bringing the YTD margin to 27.3% and well on track to deliver on the outlook for the year.
  • Profit for Q3 of EUR 682 million was positively impacted by recognized gain from the divestment of Natural Colors of EUR 636 million.

EUR million

Q3 2020/21

Q3 2019/20

Growth

YTD 2020/21

YTD 2019/20

Growth

Revenue

280.6

256.1

10%

784.1

715.7

10%

EBITDA before special items

106.6

105.7

1%

287.5

279.6

3%

EBIT before special items

82.4

88.3

(7%)

213.9

229.2

(7%)

Profit from continuing operations

49.5

63.6

(22%)

131.7

164.0

(20%)

Free cash flow before acquisitions and special items

85.0

94.4

(10%)

119.9

143.5

(16%)

Organic growth

4%

9%

8%

6%

Gross margin

57.3%

59.8%

56.6%

59.7%

EBITDA margin before special items

38.0%

41.3%

36.7%

39.1%

EBIT margin before special items

29.3%

34.5%

27.3%

32.0%

ROIC excl. goodwill

25.3%

38.0%

23.7%

34.0%

CEO Mauricio Graber says: “Organic growth in Q3 was lower than in the first half of the year, as expected. This was primarily due to a reduced positive effect from EUR-based pricing and a higher comparable as customers built safety inventories due to the COVID-19 lockdowns last year. Nevertheless, we did see an acceptable volume growth in FC&E driven by solid momentum in cheese in North America and a reduced negative impact from the Chinese dairy market. While not satisfactory, the flat organic growth for Health & Nutrition was partly driven by the higher comparable from Q3 last year for Human Health, while Animal and Plant Health delivered solid growth. The acquired probiotics businesses within Human Health delivered a strong sales performance in Q3.

As the world gradually re-opens we’re focused on getting our sales force and innovation teams even closer to our markets and customers in order to fuel the innovation agenda of the markets we serve, in terms of both new applications and efficiencies. This is supported by the launch and implementation of new products addressing key challenges and opportunities such as bioprotection and fermented plant bases.

While keeping a firm focus on delivering on our outlook for the year, I’m pleased with the progress we’re making in transforming Chr. Hansen into a fully-focused bioscience company based on our unique microbial and fermentation technology platforms. The completion of the NCD divestment was a key milestone, another being the integration of UAS and HSO. Despite the initial challenges, we’re also progressing with the new long-term lighthouse within the emerging HMO market.

We remain on track to deliver on our ambition for the year and the outlook therefore remains unchanged. The overall outlook for Human Health remains positive but a changed mix between organic and acquisition driven sales which will keep Group organic growth below our original expectations in Q4.”

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 más de 145 años, trabajamos para facilitar la agricultura sostenible, las etiquetas más limpias 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 40.000 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.

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