​Chr. Hansen reports solid organic growth of 9% for the first half year

​Chr. Hansen reports solid organic growth of 9% for the first half year
The solid development from Q1 continues into Q2 and we are satisfied with the progress in the first half year.
Press Release | Apr 11. 2018 06:04 GMT

Chr. Hansen reports solid organic revenue growth of 9% in the first half of 2017/18: 

Food Cultures & Enzymes 12%, Health & Nutrition 8% and Natural Colors 4%. EBIT before special items increased slightly to EUR 135.9 million, corresponding to an EBIT margin before special items of 26.2%. In Q2, organic growth was 9%, and EBIT before special items increased by 2% to EUR 71.2 million. The overall outlook for 2017/18 is unchanged.

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EUR million Q2
2017/18
Q2
2016/17
Growth YTD
2017/18
YTD
2016/17
Growth
Revenue 263.7 259.4 2% 518.2 501.1 3%
EBIT before special items 71.2 70.1 2% 135.9 135.6 0%
Profit for the period 51.1 50.9 0% 97.6 97.9 0%
Free cash flow before acquisitions, divestments and special items 29.9 48.8 (39)% 11.0 29.8 (63)%
Organic growth, % 9% 9% 9% 10%
Gross margin, % 53.4% 53.7% 53.0% 53.5%
EBIT margin before special items, % 27.0% 27.0% 26.2% 27.1%
ROIC excl. goodwill, % 32.8% 34.1% 32.1% 35.2%


Solid development continues
CEO Cees de Jong says: “The solid development from Q1 has continued into Q2, with strong organic growth in Food Cultures & Enzymes from all product categories and regions. Sales of bioprotective solutions also continue to show impressive organic growth rates at around 45%. Strong sales in animal health were driven by an improved sales coverage in EMEA and APAC. 

In addition, we continue to benefit from the trend where farmers and feed manufacturers aim to use less antibiotics in livestock production. Probiotics for dietary supplements in North America are still impacted by changing market dynamics, and especially inventory reductions by a few large customers, which suppresses growth temporarily. Growth in both dietary supplements and infant formula in Asia Pacific was strong.

Our EBIT margin before special items in Q2 improved significantly compared with Q1, and was on par with last year despite an adverse impact from currencies of more than 1%-point. Higher depreciations related to the recent capacity expansion were offset by improved production efficiencies in Food Cultures & Enzymes and a better product mix in Health & Nutrition.

We are satisfied with the progress in the first half of the year, and we maintain our overall guidance for the full year. Expectations to organic growth for Food Cultures & Enzymes and Health & Nutrition are unchanged, however, we lower our expectations to organic growth in Natural Colors for the full year to be below the long-term ambition of around 10%, due to the sales development in the first half of the year.”

Outlook for 2017/18

11 April 2018 12 January 2018
Organic revenue growth 8-10% 8-10%
EBIT margin before special items Around 28.9% Around 28.9%
Free cash flow before special items, acquisitions and divestments Around EUR 188 million Around EUR 188 million 


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.


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Chr. Hansen est une entreprise internationale spécialisée dans la bioscience qui se démarque et met au point des solutions naturelles pour les secteurs alimentaire, nutritionnel, pharmaceutique et agricole. Chez Chr. Hansen, nous bénéficions d’une position unique pour stimuler un changement positif au travers de nos solutions microbiennes. Depuis plus de 145 ans, nous travaillons en faveur d’une agriculture durable, d'une meilleure alimentation et d’un mode de vie plus sain pour une part croissante de la population mondiale. Nos plateformes technologiques de solutions microbiennes et de fermentation, qui incluent notre vaste collection d’environ 40 000 souches microbiennes importantes, ont le pouvoir de changer la donne. En répondant aux besoins des consommateurs et aux tendances mondiales, nous libérons le potentiel des bonnes bactéries et relevons les défis planétaires du gaspillage alimentaire, de la santé mondiale et de la surconsommation d’antibiotiques et de pesticides. À titre d’entreprise de fabrication d’ingrédients alimentaires la plus durable au monde, nous intervenons quotidiennement dans la vie de plus d’un milliard de personnes. Motivés par notre tradition d’innovation et notre curiosité de pionniers de la science, notre objectif qui consiste à « cultiver un monde meilleur, naturellement » est au cœur de chacune de nos actions.

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