Chr. Hansen’s Q3 in line with expectations: 4% organic growth

Chr. Hansen’s Q3 in line with expectations: 4% organic growth
Chr. Hansen is progressing in transforming into a fully-focused bioscience company, based on its unique microbial and fermentation technology platforms.
Press Release | Jul 08. 2021 06:03 GMT

On track to deliver ambition for the year, outlook for 2020/21 unchanged

  • Q3 2020/21 organic sales growth was 4%, equally split between volume/mix and price. The Q3 organic growth was impacted by a reduced contribution from EUR-based pricing compared to the first half, and a higher comparable, as Q3 last year was positively impacted by COVID-19 related customer inventory build-up. YTD organic growth at 8% and on track to deliver 6-8% organic growth for the year.
  • Integration of commercial activities in UAS/HSO has been completed and integration of manufacturing is progressing with good sales momentum in Q3.
  • Q3 EBIT margin b.s.i. of 29.3%, bringing the YTD margin to 27.3% and well on track to deliver on the outlook for the year.
  • Profit for Q3 of EUR 682 million was positively impacted by recognized gain from the divestment of Natural Colors of EUR 636 million.

EUR million

Q3 2020/21

Q3 2019/20

Growth

YTD 2020/21

YTD 2019/20

Growth

Revenue

280.6

256.1

10%

784.1

715.7

10%

EBITDA before special items

106.6

105.7

1%

287.5

279.6

3%

EBIT before special items

82.4

88.3

(7%)

213.9

229.2

(7%)

Profit from continuing operations

49.5

63.6

(22%)

131.7

164.0

(20%)

Free cash flow before acquisitions and special items

85.0

94.4

(10%)

119.9

143.5

(16%)

Organic growth

4%

9%

8%

6%

Gross margin

57.3%

59.8%

56.6%

59.7%

EBITDA margin before special items

38.0%

41.3%

36.7%

39.1%

EBIT margin before special items

29.3%

34.5%

27.3%

32.0%

ROIC excl. goodwill

25.3%

38.0%

23.7%

34.0%

CEO Mauricio Graber says: “Organic growth in Q3 was lower than in the first half of the year, as expected. This was primarily due to a reduced positive effect from EUR-based pricing and a higher comparable as customers built safety inventories due to the COVID-19 lockdowns last year. Nevertheless, we did see an acceptable volume growth in FC&E driven by solid momentum in cheese in North America and a reduced negative impact from the Chinese dairy market. While not satisfactory, the flat organic growth for Health & Nutrition was partly driven by the higher comparable from Q3 last year for Human Health, while Animal and Plant Health delivered solid growth. The acquired probiotics businesses within Human Health delivered a strong sales performance in Q3.

As the world gradually re-opens we’re focused on getting our sales force and innovation teams even closer to our markets and customers in order to fuel the innovation agenda of the markets we serve, in terms of both new applications and efficiencies. This is supported by the launch and implementation of new products addressing key challenges and opportunities such as bioprotection and fermented plant bases.

While keeping a firm focus on delivering on our outlook for the year, I’m pleased with the progress we’re making in transforming Chr. Hansen into a fully-focused bioscience company based on our unique microbial and fermentation technology platforms. The completion of the NCD divestment was a key milestone, another being the integration of UAS and HSO. Despite the initial challenges, we’re also progressing with the new long-term lighthouse within the emerging HMO market.

We remain on track to deliver on our ambition for the year and the outlook therefore remains unchanged. The overall outlook for Human Health remains positive but a changed mix between organic and acquisition driven sales which will keep Group organic growth below our original expectations in Q4.”

Outlook for 2020/21

Organic revenue growth

6-8%

EBIT margin before special items

27-28%

Free cash flow before special items, acquisitions and divestments

EUR 140-160 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。

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