Chr. Hansen Reports 9% Organic Growth

23 Oct 2013 --- Chr. Hansen has reported solid annual results, which are claimed to provide strong platform for the company’s future performance.

“Chr. Hansen delivered solid results in 2012/13 with organic growth of 9% excluding carmine price effect and an EBIT margin before impairment of 27.2%. The performance in the past year provides a strong platform for future success and with our Nature’s No. 1 strategy we are ready to take Chr. Hansen to the next level,” says CEO Cees de Jong.

“For 2013/14 we expect organic revenue growth of 7-9% and an EBIT margin before special items above 26%.”

Highlights 2012/13:
•Revenue EUR 738 million, up 6% on 2011/12
•Organic growth 7% (9% excluding carmine price effect)
•EBIT EUR 193 million, compared to EUR 185 million in 2011/12
•EBIT margin 26.1%, down from 26.5% in 2011/12. EBIT margin before impairment 27.2%, unchanged from 2011/12
•Q4 2012/13 results: Revenue EUR 194 million, up 5% on 2011/12. Organic growth 10% (12% excluding carmine price effect). EBIT margin before impairment 30.7%, up from 29.8% in 2011/12.

In terms of outlook for 2013/14, organic revenue growth is expected to be 7-9%.

Research & development expenditures incurred as a percentage of revenue are expected to move towards 7% of revenue from 6.1% in 2012/13. Chr. Hansen has reassessed the capitalization of development expenditures. Based on this reassessment, a higher proportion of development expenditures is expected to be expensed in 2013/14. The increased research & development activity and lower level of capitalization are estimated to reduce the EBIT margin by 1-1.5 percentage points.

The EBIT margin before special items is expected to be above 26%.

Free cash flow before acquisitions and divestments is expected to be at the same level as in 2012/13.