Solid results in an uncertain macroeconomic environment
Statement by CEO Mauricio Graber: “The execution of our strategy to differentiate as a focused microbial and fermentation technology company continued to deliver solid results with 9% organic growth for the third quarter 2021/22, equal to 13% growth in EUR terms. Our inflation-driven pricing measures started to contribute positively during Q3, while volume growth slowed down as expected following the strong growth in the first half of the year. Based on the performance of the quarter, we narrow our organic revenue growth target for 2021/22 to 8-10%. The delayed impact from pricing combined with the continued inflationary pressure and actions to protect our supply chain had a negative impact on our EBIT margin b.s.i. However, at 26.3% for the first nine months we remain on course to deliver within our guidance.”
Q3 2021/22 highlights
- Revenue amounted to EUR 318 million, up 13% from EUR 281 million in Q3 2020/21. Year-to-date revenue amounted to 890 million, up 14% from last year.
- Organic growth was 9% in Q3 2021/22 mainly driven by volume growth. The Lighthouses (Bioprotection, Fermented Plant Bases, Plant Health and HMO) delivered 29% organic growth combined in Q3, while the remaining core businesses delivered 7% organic growth. Year-to-date Group organic growth was 11%.
Food Cultures & Enzymes organic growth was 6% mainly driven by volume, but with an increasing impact from pricing. Year-to-date organic growth was 7%.
Health & Nutrition organic growth was 13% driven by volume. Year-to-date organic growth was 17%.
- EBIT b.s.i. amounted to EUR 85 million, up 3% from EUR 82 million in Q3 2020/21. The increase was driven by the strong sales performance in Health & Nutrition, while EBIT b.s.i. in Food Cultures & Enzymes decreased mainly due to a negative impact from higher input costs, increased cost levels to mitigate challenges in the supply chain, donation of an amount equal to the profit from Chr. Hansen LLC, Russia, and non-recurring costs related to an organizational change. Year-to-date EBIT b.s.i. amounted to EUR 234 million, up 10% from last year.
- The EBIT margin b.s.i. was 26.7%, down from 29.3% in Q3 2020/21. The lower margin was due to higher input costs, increased cost levels to mitigate challenges in the supply chain, a general ramp-up of activities, the donation of an amount equal to the profit from Chr. Hansen LLC, Russia and non-recurring costs related to an organizational change. This was partly offset by production efficiencies, a positive contribution from currencies, and pricing initiatives. Year-to-date EBIT margin b.s.i. was 26.3%, compared to 27.3% last year.
- Free cash flow b.a.s.i. amounted to EUR 116 million year-to-date, down from EUR 120 million last year, as the cash flow from operating activities b.a.s.i. was impacted by higher taxes paid.
Outlook
As a result of the performance in the first nine months we narrow the 2021/22 outlook range for organic revenue growth while maintaining the outlook for EBIT margin b.s.i. and free cash flow b.s.i. relative to the guidance provided on April 6, 2022.
| July 7, 2022 | April 6, 2022 | |
Organic growth is expected in the range of |
8-10% | 7-11% |
| EBIT margin before special items is expected to be | 26-27% | 26-27% |
| Free cash flow before special items is expected to be around | EURm 140-170 | EURm 140-170 |
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.