Chr. Hansen’s Board of Directors regularly assesses whether the Company’s capital structure supports the strategy and the long-term value creation in the interest of the Company and the shareholders. The Board of Directors is committed to maintaining financial leverage consistent with a solid investment-grade credit profile, while returning excess cash to shareholders.
In terms of capital allocation, Chr. Hansen has clear priorities. Investing for organic growth is the number one priority followed by bolt-on acquisitions. Thirdly, the Company aims to return excess cash to investors in the form of ordinary dividends, extraordinary dividends or share buybacks.
Distributions to shareholders are subject to the Board of Directors’ assessment of factors such as business development, growth strategy, current leverage and financing needs. There can be no assurance that a dividend will be proposed or declared in any given year, but generally the Company aims to pay out an annual ordinary dividend of 40%-60% of net profit.
(Source: Annual Report 2020/21, p. 29)