Chr. Hansen reports strong organic growth of 10% for Q1

Chr. Hansen reports strong organic growth of 10% for Q1
Chr. Hansen is on track to execute on its 2025 strategy.
Press Release | Jan 14. 2021 07:00 GMT

Off to a positive start to 2020/21 with good commercial traction and integration of acquisitions on track

  • Q1 2020/21 organic sales growth was 10%, equally split between volume/mix and price, and driven by Health & Nutrition, which delivered 15% growth, while Food Cultures & Enzymes delivered 8% growth
  • Underlying EBIT margin b.s.i. (see reconciliation on p. 20) of 28.5%, incl. 1%-point negative currency impact, compared to 29.0% in Q1 2019/20. Reported EBIT margin b.s.i. (incl. all acquisition impacts) was 25.2%
  • Integration of probiotic acquisitions well on track, but temporary capacity constraints in HMO will phase part of expected FY21 revenues and capex to FY22
  • Outlook for 2020/21 is unchanged on all key parameters
EUR million Q1 2020/21 Q1 2019/20 Growth
Revenue 243.5 220.0 10.7%
EBITDA before special items 87.8 80.1 9.6%
EBIT before special items 61.4 63.8 (3.8%)
Profit from continuing operations 36.1 45.6 (20.8%)
Free cash flow before acquisitions and special items (6.9) 7.5 (192.0%)
Organic growth 10% 2%
Gross margin 55.9% 60.2%
EBITDA margin before special items 36.1% 36.4%
EBIT margin before special items 25.2% 29.0%
ROIC excl. goodwill 20.6% 29.4%

CEO Mauricio Graber says: “Our first quarter came in quite strong on a relatively easy comparable from Q1 last year, with good performance across our business, especially within Health & Nutrition. We were able to win new business, launch new products in Food Cultures & Enzymes and drive upselling in key markets such as cheese – all despite the difficulties of COVID-19. We have more product launches scheduled for the current financial year, which will help to ensure that we have a healthy commercial pipeline in the years to come.

Chr. Hansen is on track to execute on our 2025 strategy and become a focused bioscience company based on a unique microbial and fermentation technology platform. This is a year of transition, where we need to secure a successful integration of the acquired businesses. We have started out strong, and we will address any challenges that may arise in those processes head on and with determination. The divestment process of Natural Colors is also on track and the business delivered as expected.

Our outlook for 2020/21 remains cautious, and despite COVID-19 we are able to maintain our outlook on all key parameters. This means that we will still outgrow the underlying markets as we strive to deliver industry-leading growth rates.”

Outlook for 2020/21

Organic revenue growth 5-8%
EBIT margin before special items 27-28%
Free cash flow before special items, acquisitions and divestments EUR 120-160 million

The guidance for EBIT margin before special items and for free cash flow before acquisitions and special items assumes constant currencies from the time of this announcement and for the remainder of the financial year.

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、更清洁的标签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。