Chr. Hansen has an ambitious financial agenda and remains committed to delivering industry-leading profitable growth and a strong cash flow generation. Under its 2025 Strategy and from the base year of 2018/19, Chr. Hansen aims to deliver:
- Mid- to high single-digit organic growth, averaged over the period.
- An increase in EBIT margin before special items, before portfolio changes and currency impacts. The margin improvement is expected to be based on efficiency gains and scalability benefits from operations as well as synergies from recent acquisitions, which will be partly reinvested into the business during the strategy period.
- An average growth in free cash flow before acquisitions and special items exceeding the average growth in absolute EBIT before acquisitions and special items.
The financial ambition is based on constant currencies and does not take future acquisitions or divestments into account, even if future activities are likely. The financial ambition is also based on the current political and economic environment and projections, and any deterioration may impact the ambition negatively.
Non-financial ambition 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 energy, 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 2020/21
For our 2020/21 outlook please refer to our latest quarterly report which can be found under Reports & Presentations.