Solid start to the year: 10% organic growth

Solid start to the year: 10% organic growth
Press Release | Jan 17. 2019 07:08 GMT

Chr. Hansen realizes solid organic growth of 10% in the first three months of the financial year 2018/19, delivering in line with our 'Nature’s no. 1 – Sustainably' growth ambitions.

Chr. Hansen reports solid organic revenue growth of 10% in the first three months corresponding to 6% reported growth due to adverse currency impacts: Food Cultures & Enzymes 10%, Health & Nutrition 17% and Natural Colors 6%. EBIT before special items increased by 9% to EUR 71 million, corresponding to an EBIT margin before special items of 26.3% which was up 0.9%-point compared to last year. The overall outlook for 2018/19 remains unchanged.

CEO Mauricio Graber says: “We have had a solid start to the year, with Food Cultures & Enzymes delivering strong organic growth with contributions from volume and EUR pricing, in line with our expectations. Organic growth in Health and Nutrition was also strong, driven by global demand for probiotics for infant formula in Human Health. Animal Health was impacted by timing of orders, but the underlying interest in microbial solutions for animal farming remains strong, and we continue to improve our route-to-market. Plant Health had another excellent quarter in Latin America, although absolute numbers are still modest. We were also pleased to see the momentum in Natural Colors continue in Q1, driven by demand for coloring foodstuff, where we also launched new products for the FRUITMAX® range during Q1.

"Our EBIT margin before special items in Q1 increased by 0.9%-point and was driven by improved margins in Health & Nutrition and Natural Colors. The EBIT margin in Food Cultures & Enzymes was positively impacted by a strong development in gross margin, and ended on par with last year, as we continued to invest in our growth and innovation priorities. We continue to expect a positive contribution from further scalability benefits, as we ramp up utilization of the new capacity in our facility in Copenhagen.

"We are encouraged by the solid start to the year, and we maintain our overall guidance for the full year. Our pipeline of products to be launched this year, from all three business areas, looks very promising and will support the growth potential of Chr. Hansen.”


OUTLOOK FOR 2018/19

The overall outlook for 2018/19 is unchanged compared to the announcement of October 15, 2018

                                                                     January 17, 2019 October 15, 2018
Organic revenue growth 9-11% 9-11%
EBIT margin before special items around 29.5% around 29.5%
Free cash flow before acquisitions,
divestments and special items
around last year around last year

The guidance for EBIT margin before special items and for free cash flow before acquisitions, divestments and special items assumes constant currencies from the time of this announcement and for the remainder of the financial year.

EUR million Q1
2018/19
Q1
2017/18
Growth
Revenue 269.4 254.5 6%
EBIT before special items 70.8 64.7 9%
Profit for the period 51.1 46.5 10%
Free cash flow before acquisitions and special items (32.5) (18.9) (72)%
Organic growth, % 10% 10%
Gross margin, % 54.9% 52.5%
EBIT margin before special items, % 26.3% 25.4%
ROIC excl. goodwill, % 31.4% 30.9%

Chr. Hansen est une entreprise internationale, leader dans le domaine de la bioscience, qui met au point des solutions naturelles pour les industries des secteurs alimentaire, nutritionnel, pharmaceutique et agricole. Nous développons et produisons des cultures, des enzymes, des probiotiques et des colorants naturels pour toute une série d'aliments, de bonbons, de boissons, de compléments alimentaires, de produits alimentaires pour animaux, ainsi que de produits de protection des plantes. Notre innovation en matière de produits repose sur environ 40 000 souches microbiennes – que nous aimons appeler de « bonnes bactéries ». Nos solutions permettent aux fabricants de produits alimentaires de produire plus avec moins – tout en limitant le recours à des produits chimiques ou à des additifs de synthèse – ce qui rend nos produits très intéressants dans le monde actuel. Le développement durable fait partie intégrante de la vision de Chr. Hansen pour améliorer l'alimentation et la santé. En 2019, Chr. Hansen a été classée l’entreprise la plus durable au monde par Corporate Knights grâce à ses efforts soutenus en matière de développement durable et à ses nombreux partenariats collaboratifs avec ses clients. Nous apportons de la valeur à nos partenaires et, au final, aux consommateurs du monde entier, et ce depuis plus de 145 ans. Nous sommes fiers que plus d'un milliard de personnes dans le monde consomment des produits contenant nos ingrédients naturels tous les jours. La société Chr. Hansen a été fondée en 1874 et est cotée au Nasdaq de Copenhague.

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