Chr Hansen Report Strong Growth and Upward Adjustment of Outlook

"Chr. Hansen also achieved a 19% increase in EBIT. The organic growth (excluding carmine price effect) of 9% in Q3 was slightly better than expected," says CEO Lars Frederiksen. The companies’ revenue was €514 million ($646 million), up 8% compared to the first nine months of 2010/11.

4 Jul 2012 --- Chr Hansen has reported organic growth of 10% for the first nine months of financial year 2011/12. The company says it is “continuing its profitable journey,” and has raised its expectations to revenue growth for the year.

"Chr. Hansen also achieved a 19% increase in EBIT. The organic growth (excluding carmine price effect) of 9% in Q3 was slightly better than expected," says CEO Lars Frederiksen.

“The positive momentum in the Cultures & Enzymes Division continued throughout Q3 with organic growth of 9% while the Health & Nutrition Division as expected reported soft organic growth of 6%. The Natural Colors Division reported 10% organic growth (excluding carmine price effect) in Q3, driven by the continued conversion to natural colors in food & beverages.

“Based on the continued solid performance in Q3 we have adjusted our expectations, with organic revenue growth now expected at 9-11% (excluding carmine price effect) while the profitability is expected to improve compared to last year with an EBIT margin between 26.5-27.0%," Lars Frederiksen concludes.

The companies’ revenue was €514 million ($646 million), up 8% compared to the first nine months of 2010/11.

Organic growth of 10% (adjusted for changes in sales prices to reflect changes in raw material prices for carmine).

EBIT was €135 million ($169 million), up 19% compared to the first nine months of 2010/11. The EBIT margin before special items was 26% compared to 24% in the same period last year.

Q3 2011/12 revenue was €181 million ($227 million), up 7% compared to Q3 last year. Organic growth was 9% (adjusted for changes in sales prices to reflect changes in raw material prices for carmine). EBIT margin reached 29% compared to 26% in Q3 last year.

As a result of the continued solid performance during Q3 the outlook for 2011/12 has been adjusted:

·        Organic revenue growth, excluding effect on sales prices from change in raw material prices for carmine, is now expected to be in the range of 9-11% (adjusted from 8-10%) while organic revenue growth, including the effect from change in raw material prices for carmine, is expected in the range of 6-8% (adjusted from 5-7%).

·        The EBIT margin is expected to be between 26.5-27.0% (adjusted from above 26%).