Chr. Hansen remains committed to delivering industry-leading profitable growth and strong cash flows with focus on cost discipline and capital efficiency.
From 2020/21 to 2024/25, Chr. Hansen aims to deliver:
- Organic revenue growth
Mid-to-high single-digit organic revenue growth, averaged over the period. Unchanged from announcement of August 24, 2020.
- EBIT margin before special items
An increase of the EBIT margin before special items over the period to more than 30% driven by efficiency gains, scalability benefits and acquisition synergies that will be partly reinvested in the business.
- Free cash flow before special items
Average growth in free cash flow before special items exceeding the average growth in EBIT before special items.
Sensitivity to the long-term financial ambitions
The geopolitical and macroeconomic environment has changed significantly, particularly impacted by the inflationary cost pressure, disruption of global supply chains, and effects related to Russia’s invasion of Ukraine. As a consequence, Chr. Hansen’s ability to meet the long-term financial ambitions through 2025, as initially announced in 2020, is highly sensitive to the following core assumptions:
- Adjustment of selling prices to offset inflationary pressure over the period.
- Normalization of global supply chains.
- Stabilization of the geopolitical and macroeconomic environment.
- Constant exchange rates and no impact from future acquisitions or divestments.
Non-financial ambitions until 2024/25
As part of its 2025 Strategy, Chr. Hansen has set the following sustainability and non-financial ambitions:
- PRODUCTS: More than 80% of revenue from sustainable products that contribute to the United Nation’s Sustainable Development Goals 2, 3 and 12; 25 million hectares covered with natural solutions (Plant Health and silage inoculants); 200m people consuming Chr. Hansen’s probiotic strains; 2 million tons of yogurt waste reduced.
- PLANET: As part of its commitment to limit global temperature rise, Chr. Hansen aims for 100% renewable electricity, circular management of biowaste and recyclable key packaging materials.
- PEOPLE: The Company aims to have introduced 100% of its new employees to its culture model, have a 1:1 equal ratio between female employees and women in management, have a top 25% score in its employee engagement survey and reach a lost-time incident frequency of below 1.5.
Outlook for 2022/23
For our 2022/23 outlook please refer to our latest quarterly report which can be found under Reports and presentations.