Chr. Hansen Reports Solid Growth, Changes Regional Structure

03 July 2013 --- With organic growth of 9% in the first nine months of the financial year 2012/13 Chr. Hansen has delivered a solid interim result. “Chr. Hansen delivered organic growth of 9% excluding carmine price effect in the first nine months of 2012/13. In Q3 the organic growth excluding carmine price effect was 8%."

The Cultures & Enzymes Division realized 7% growth in line with the long term organic growth expectations for the division. Both the Health & Nutrition Division and the Natural Colors Division delivered double digit growth. For the full year 2012/13 we expect organic growth excluding carmine price effect of 8-9% (previously 8-10%),” says CEO Cees de Jong. “Operating profit (EBIT) margin before impairments was at 25.9% slightly below last year (26.2%) and for the full year 2012/13 we expect an EBIT margin before special items and impairments around 27% (previously above last year).”

Highlights, first nine months of 2012/13:
• Revenue of EUR 545 million, up 6% compared to the first nine months of 2011/12
• Organic growth of 6% (9% excluding carmine price effect)
• EBIT of EUR 133 million, down 1% compared to the first nine months of 2011/12. EBIT margin of 24.4% compared to 26.2% last year. The EBIT margin before impairments reached 25.9%
• Q3 2012/13 revenue was EUR 192 million, up 6% compared to Q3 last year. Organic growth was 7% (8% excluding carmine price effect). EBIT margin of 27.6% compared to 28.5% in Q3 last year.

Expectations to organic growth have been narrowed. Organic growth, excluding the carmine price effect, is expected to be in the range of 8-9% (previously 8-10%) while organic growth, including the carmine price effect, is expected to be in the range of 6-7% (previously 7-9%). EBIT margin before special items and impairments is now expected to be around 27% (previously above last year (27.2%)). Please see the interim report for further details.

Chr. Hansen has changed the regional structure of its commercial organization in order to align geographies and to provide a stronger strategic focus. “Our present four regions will merge into three new and at the same time take seat in the Corporate Leadership Team. Each region will be headed up by a Group Vice President and they will report directly to me. We strengthen our customer-centric approach and move regional commercial decision making and corporate leadership closer,” says CEO Cees de Jong.

The three new regions are:
• EMEA (Europe, Middle East and Africa) headed by Jacob Vishof Paulsen, Group Vice President EMEA
• Americas (North America and Latin America) headed by David Carpenter, Group Vice President Americas
• APAC (Asia Pacific) headed by Sten Estrup, Group Vice President APAC

“We match regions that are closer to each other geographically and also to a large extent commercially when it comes to customer lay-out, buying habits and consumer preferences. For instance in North-, Central- and South America we see growing interaction between the regions and consumer demand for regional availability of products they are accustomed to from their home markets,” Cees de Jong concludes. The reorganization entails a change in the management structure. In addition to the Executive Board members, Cees de Jong, Klaus Pedersen, Knud Vindfeldt, Henrik Dalbøge, Carsten Bennike and Jesper Allentoft, the Corporate Leadership Team will consist of Winnie Büegel, Compliance, Christian Barker, Strategic Development (both members today) and the new Group Vice Presidents Jacob Vishof Paulsen, EMEA, David Carpenter, Americas and Sten Estrup, APAC.