Solid Q1 supports the outlook for 2022/23
Statement by CEO Mauricio Graber: “The solid results for Q1 show the strength of our business model. Organic growth reached 10%, driven by both volume and pricing initiatives and EBIT b.s.i. increased by 17% supported by the organic growth and exchange rates, leading to an EBIT margin b.s.i. of 24.7%. In light of the Q1 performance we maintain our underlying target for the year but update the outlook to reflect current exchange rate levels.
We will maintain a clear and strong focus on executing on our targets for the financial year 2022/23 while preparing for the proposed merger with Novozymes, which offers an exciting opportunity to create a leading global biosolutions partner based on strong complementary technology platforms, highly dedicated employees and a customer-centric approach.”
Q1 2022/23 highlights
- Revenue amounted to EUR 310 million, up 15% from EUR 268 million in Q1 2021/22.
- Organic growth was 10% in Q1 2022/23 driven by a mix of volume and price growth. Food Cultures & Enzymes organic growth was 8% mainly driven by price initiatives, but with good volume growth above underlying markets. Health & Nutrition organic growth was 12% driven by volume. The Lighthouses (Bioprotection, Fermented Plant Bases, Plant Health and HMO) was impacted by timing of orders and delivered 4% organic growth combined in Q1, while the core businesses delivered 10% organic growth.
- EBIT b.s.i. amounted to EUR 77 million, up 17% from EUR 65 million in Q1 2021/22. The increase was driven by a positive contribution from exchange rates and pricing initiatives, which was partly offset by a negative impact from higher input costs.
- The EBIT margin b.s.i. was 24.7%, up from 24.4% in Q1 2021/22. The improved margin was due to a positive contribution from exchange rates, which was partly offset by continuing inflationary pressures, despite ongoing price initiatives.
- Free cash flow b.a.s.i. amounted to EUR 17 million, down from EUR 55 million last year, as the cash flow from operating activities b.a.s.i. was negatively impacted by a change in working capital and higher taxes paid.
- On December 12, 2022 Chr. Hansen and Novozymes announced that the two companies had entered into an agreement to create a leading global biosolutions partner through a statutory merger. Work has been initiated to seek customary merger control and other regulatory approvals from relevant authorities, while the extraordinary general meeting for shareholder approval is currently expected to be held in the first half of the calendar year 2023.
Outlook
The current exchange rate level for the EUR/USD stands at 1.07 versus 0.97 at the time of the initial 2022/23 outlook provided on October 12, 2022. To reflect the 10% depreciation of the USD we update the outlook for the year regarding the impact from exchange rates on revenue, EBIT margin b.s.i. and cashflow b.a.s.i. The expectations to the underlying business incl. organic growth, EBIT margin b.s.i. and cash flow b.a.s.i. net of exchange rates remain unchanged.
12 January 2023 | 12 October 2022 | |
Organic revenue growth | 7-10% | 7-10% |
Impact from exchange rates on revenue | Neutral | 5% |
EBIT b.s.i. growth compared to revenue | In line | faster |
EBIT margin b.s.i. | 26-27% | 27-28% |
Free cash flow b.a.s.i. | EUR 170-210 million | EUR 190-230 million |
The outlook for 2022/23 is based on actual exchange rates until January 11, 2023, and for the remainder of the year assuming constant exchange rates at the current level of EUR/USD rate of 1.07. For further details on the outlook for 2022/23, please refer to page 10.
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 près de 150 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 50 000 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.