Chr. Hansen plans “next-gen” fermented dairy ingredients in Q3, reports 10% organic growth in Q2
15 Apr 2021 --- Chr. Hansen has revealed 10 percent organic growth in Q2 of 2020/2021. According to CEO Mauricio Graber, continued strong organic growth momentum has led to an upwards narrowing of full-year organic growth guidance to 6-8 percent (previously 5-8 percent). Meanwhile, there are plans to launch the next generation of bioprotection for fermented milks and certain cheeses.
“In our second quarter, we delivered strong organic growth on a more demanding comparable from last year, with continued good momentum in both business areas,” says Graber.
Q2 organic sales growth was equally split between volume/mix and price and driven by Health & Nutrition, which delivered 14 percent growth while Food Cultures & Enzymes delivered 8 percent growth.
“Our business in Asia-Pacific delivered 10 percent organic growth fueled by Health & Nutrition, providing reassurance that we can grow the region strongly even as the Chinese yogurt market is still in decline. Customer engagement, both in China and globally, remains high despite the current difficulties of in-person interactions,” Graber explains.
Good results across business areas and regions secure upwards narrowing of full-year guidance, says Chr. Hansen.Wider strategies
Through the company’s acquisitions, Chr. Hansen is building a more balanced business globally between Food Cultures & Enzymes and Health & Nutrition, stresses Graber.
“We’ve continued the integration of the acquired businesses and have recently completed a major milestone in the divestment of Natural Colors, and we are executing our strategy of becoming a focused bioscience company based on a unique microbial and fermentation technology platform,” Graber continues.
Following the divestment of Natural Colors, the company has initiated the process for paying out an extraordinary dividend of around €116 million (US$139 million), and payment of the dividend is expected to be affected during May.
“In Q2, we progressed on our innovation agenda with many new patents, trademarks and registrations, and in Q3, we will be launching the next generation of bioprotection for fermented milks and certain cheeses.”
Despite the uncertainties lingering from COVID-19, Graber expects that Q4 to be the stronger of the two remaining quarters, “primarily as Q3 of last year had a tailwind effect from customers building COVID-19 related safety inventories,” he reveals.
The company is also spotlighting the potential of the Asia-Pacific market in its Q2 2020/2021 results, as reported by NutritionInsight.
In January, Chr. Hansen revealed its Q1 results, highlighting solid organic growth. With this, the company is on track to execute its 2025 strategy, it said at the time.
Earlier this month, Chr. Hansen and EQT completed their deal with the global investment organization acquiring the Danish ingredient supplier’s Natural Colors division. The divestment follows the 2025 Strategy of Chr. Hansen becoming a differentiated bioscience company with a focus on microbial and fermentation technology platforms.
Edited by Elizabeth Green
