Interim report Q1 - 1 September 2016 - 30 November 2016
Hoersholm, 2017-01-11 07:59 CET (GLOBE NEWSWIRE) --
Strong organic revenue growth of 11% in Q1 2016/17: Food Cultures & Enzymes (10%), Health & Nutrition (8%) and Natural Colors (13%). EBIT before special items increased by 21% to EUR 66 million.
| EUR million | Q1 2016/17 |
Q1 2015/16 |
Growth |
| Revenue | 241.7 | 214.4 | 13% |
| EBIT before special items | 65.5 | 54.0 | 21% |
| Profit for the period | 47.0 | 38.9 | 21% |
| Free cash flow before acquisitions, divestments and special items | (19.1) | (16.6) | (15)% |
| Organic growth, % | 11% | 14% | |
| Gross margin, % | 53.4% | 52.3% | |
| EBIT margin before special items, % | 27.1% | 25.2% | |
| ROIC excl. goodwill, % | 34.3% | 33.1% |
"The results in Q1 gave us a good start to the year, and we maintain our guidance for the full year. Both Food Cultures & Enzymes and Natural Colors delivered strong organic growth and improved profitability. The organic growth in Health & Nutrition was still below our long-term ambitions, however, better than expected for the quarter, mainly due to timing of orders. The EBIT margin for the business area was down, partly due to an unfavorable product mix," says CEO Cees de Jong.
"We made good progress on our focus areas for 2016/17. Our bioprotective cultures continue to deliver strong growth. In Q1, growth was approximately 25%, and the segment now accounts for approximately 5% of the revenue in Food Cultures & Enzymes. In November, we concluded the acquisition of LGG®, and we have initiated integrating the business into Chr. Hansen. The integration of NPC is being concluded and we are starting to reap the synergies from the acquisition. Plant health supported the growth in Health & Nutrition with sales of both Nemix® C and VGR™, and we are making progress in our work to introduce new products in the coming years. Natural Colors showed good progress in Q1."
OUTLOOK FOR 2016/17
The outlook for 2016/17 is unchanged compared to the announcement of 26 October 2016.
Organic revenue growth: 8-10% (previously 8-10%)
EBIT margin before special items: slightly increasing (previously slightly increasing)
Free cash flow before acquisitions, divestments and special items:
around EUR 175 million (previously around EUR 175 million)
This unaudited interim report has been prepared in accordance with IAS 34 and additional Danish regulations. The interim report has been prepared in accordance with the accounting policies set out in the Annual Report for 2015/16.
For further information, please contact:
Cees de Jong, CEO
Tel: +45 4574 7474
Søren Westh Lonning, CFO
Tel: +45 4574 7474
Anders Mohr Christensen, Senior Director, Investor Relations
Tel: +45 4574 7618
Forward-looking statements
This announcement contains forward-looking statements. Such statements are subject to risks and uncertainties, as various factors, many of which are beyond the control of Chr. Hansen Holding A/S, may cause actual developments and results to differ materially from the expectations expressed in this announcement.
About Chr. Hansen
Chr. Hansen is a global bioscience company that develops natural ingredient solutions for the food, nutritional, pharmaceutical and agricultural industries. The products include cultures, enzymes, probiotics and natural colors, and all solutions are based on strong research and development competencies coupled with significant technology investments. Revenue in the 2015/16 financial year was EUR 949 million. The company has more than 2,700 dedicated employees in 30 countries and main production facilities in Denmark, France, USA and Germany. Chr. Hansen was founded in 1874 and is listed on Nasdaq Copenhagen A/S. For further information, please visit www.chr-hansen.com.
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