Chr. Hansen delivers 9% organic growth in Q1: Encouraging start to the year

Chr. Hansen delivers 9% organic growth in Q1: Encouraging start to the year
Press Release | Jan 13. 2022 07:02 GMT

Progress across all business areas and strategic initiatives underlines the strength of our 2025 strategy
“The encouraging start to the year with organic growth of 9% and progress across all business areas and strategic initiatives underlines the strength of our 2025 strategy, differentiating us as a bioscience company focused on microbial and fermentation technology platforms. Food Cultures & Enzymes continued its strong momentum in the first quarter, while Health & Nutrition delivered a strong rebound following a Q4 that fell short of expectations. EBIT b.s.i. developed favorably at 7% growth, despite the impact from inflation and a general increase in activities as we reconnected with customers. The EBIT margin b.s.i. was down compared to last year due to the full inclusion of the HMO activities. We maintain our outlook for the full year,” states CEO Mauricio Graber.

Q1 2021/22 highlights

  • Revenue amounted to EUR 268 million, up 10% from EUR 243 million in Q1 2020/21.
  • Organic growth was 9% driven by volume growth. The Lighthouses (Bioprotection, Fermented Plant Bases, Plant Health and HMO) delivered 35% organic growth combined, while the remaining Core businesses delivered 7% organic growth.
  • Food Cultures & Enzymes organic growth was 7% driven by volume.
  • Health & Nutrition organic growth was 13% driven by volume.
  • EBIT b.s.i. amounted to EUR 65 million, up 7% from EUR 61 million in Q1 2020/21. The increase was driven by Food Cultures & Enzymes, while EBIT b.s.i. in Health and Nutrition was at the Q1 2020/21 level due to a negative impact from Jennewein (HMO), which was only partly reflected in Q1 2020/21 (acquisition was closed on October 9, 2020).
  • The EBIT margin b.s.i. was 24.4%, down from 25.2% in Q1 2020/21. Production efficiencies and scalability effects from the solid sales performance were offset by higher input costs not yet reflected in the sales prices, a general ramp- up of activities including travel, and the full inclusion of HMO.
  • Implementation of price adjustments to reflect the current inflationary pressure is progressing as planned in close collaboration with our customers and is expected to have an effect from Q2 onwards.
  • Free cash flow before acquisitions and special items (b.a.s.i.) amounted to EUR 55 million, up EUR 62 million from Q1 2020/21. The increase was due to both an improved cash flow from operating activities and lower operational investing activities.
  • Bacthera entered into an agreement with Seres Therapeutics for the commercial manufacturing of SER-109, a potential treatment against recurrent C. difficile infection.
  • Chr. Hansen launched its science-based climate targets to reduce its carbon footprint towards 2030.


Outlook

The outlook for 2021/22 remains unchanged from the original guidance provided on October 14, 2021:

  • Organic growth is expected in the range of 5-8%.
  • EBIT margin before special items is expected to be 27-28%.
  • Free cash flow before special items is expected to be around EUR 140-170 million.

Read the full interim report here


      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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