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 汉森是一家全球性且具备差异化的生物科技公司，为食品行业、营养行业、制药行业和畜牧业开发天然原料的解决方案。 在科 汉森，我们拥有独特的优势，可通过微生物解决方案推动积极的变革。 在过去超过 145 年的时间里，我们致力于实现可持续的农业、更好的食品以及让全世界更多的人过上更健康的生活。 我们的微生物和发酵技术平台拥有改变规则的潜力，库存广泛且价值重大，包括约 40,000 种微生物菌株。 除了适应客户需求和全球趋势外，我们还将挖掘释放有益菌的力量，以应对食物浪费、全球健康以及抗生素和杀虫剂滥用等全球挑战。 作为全世界最具可持续性的生物技术公司，我们每天影响超过 10 亿人的生活。 受我们的创新传统与对前沿科学的求知驱动，公司宗旨“To grow a better world. Naturally.”体现在我们的所有工作中。