5% organic growth in Q2 elevates year-to-date organic growth to 3%
Organic revenue growth of 5% in Q2, corresponding to 4% EUR growth, with an improving momentum in all areas as expected: Food Cultures & Enzymes 5%, Health & Nutrition 8% and Natural Colors 1%, lifting the group organic revenue growth in the first six months of 2019/20 to 3%. In Q2 EBIT before special items increased by 6% to EUR 83 million, and EBIT margin before special items increased to 28.2%. The full-year outlook is unchanged.
CEO Mauricio Graber says: “We are pleased that all three business areas improved the growth momentum in Q2, as expected. Food Cultures & Enzymes delivered solid organic growth as we continue to deliver advanced technology that can help our customers innovate, improve food quality, reduce waste and drive down costs. Especially innovative dairy enzymes, like CHY-MAX® Supreme and NOLA® Fit are doing very well, and bioprotection grew approximately 15% in Q2. In Health & Nutrition, Animal Health continued to perform strongly driven by BOVAMINE® Dairy probiotics; and Human Health also delivered solid growth. Natural Colors showed positive growth, despite continued negative raw material price impacts and challenging market conditions, as growth and profitability of FRUITMAX® was strong.
"Our Q2 EBIT margin before special items was up by 0.4%-point, and as we continue to see scalability benefits in production, we have also managed costs carefully while sustaining investments in growth opportunities and innovation across our three business areas. Growth in free cash flow before acquisitions and special items in Q2 was 18%. Our cash position is very strong, and we have more than two year’s free cash flow worth of committed, undrawn credit facilities. Our policy of paying out 40-60% of net profits as ordinary dividends is unchanged.
"The second quarter was in line with our expectations. The COVID-19 outbreak in China did not have a material impact on our business in Q2, however, it is clear that we will see both favorable and unfavorable impacts in the second half of the year, as the virus has spread globally. Chr. Hansen is part of the global food supply chain and has strong offerings for the food, health and nutrition industries. Customers are securing safety inventories to ensure supply continuity to consumers that are buying more at grocery retail as they comply with stay at home government directives. The health and safety of our employees and continuity of service to our customers are our primary concerns, but so far we have managed to have all our production sites running at normal operations and have also continued to deliver on customer commitments. Based on the business performance in the first part of the year, we maintain our guidance for the full year, although subject to greater macroeconomic uncertainty due to COVID-19. We also postpone the CMD to focus on business continuity and operations.”
OUTLOOK FOR 2019/20
The full-year outlook is maintained, but assumes no significant supply disruption from COVID-19.
科汉森是为食品、营养、制药和农业行业开发天然解决方案的一家全球领先的生物科学公司。我们为各种食品、糖果、饮料、膳食补充剂、动物饲料和植物保护开发和生产发酵剂、酶、益生菌和天然色素。我们的产品创新基于大约 40,000 株微生物菌株——我们喜欢称之为“有益菌群”。我们的解决方案帮助食品制造商实现以更少的资源生产更多的产品，同时也减少了化学添加剂和其他合成物添加剂的使用，这使得我们的产品与当今世界息息相关。可持续性是科汉森改善食物和健康的愿景不可分割的一部分。2019 年，科汉森被 Corporate Knights 评为全球最可持续发展的公司，这要归功于我们为可持续发展付出的巨大努力以及我们与客户建立的众多合作伙伴关系。145 年来，我们一直在不断地为我们的合作伙伴以及全球终端消费者创造价值。令我们感到自豪的是，每天有超过 10 亿人在消费含有我们天然成分的产品。科汉森成立于 1874 年，并已在哥本哈根证券交易所上市。