Chr. Hansen announces 8% organic growth

DANISH company, Chr. Hansen said its organic growth of 8% in 2013-14 were consistent with the company’s estimates. The Cultures & Enzymes Division and the Health & Nutrition Division delivered solid organic growth of 8% and 15% respectively; the Natural Colors Division delivered organic growth of 2% excluding carmine price effect.

Its Nature’s No. 1 strategy launched in 2013 continues to develop and will be taken further to next year. The company will increase its investment in biological plant protection and establish a sales and application organisation in the Natural Colors Division, according to CEO Cees de Jong.

The company reports as follows:

2013/14:

-Revenue EUR 756 million, compared to EUR 738 million in 2012/13

-Organic growth 8%

-EBIT before special items and impairments EUR 205 million, compared to EUR 201 million in 2012/13

-EBIT margin before special items and impairments 27.1%, compared to 27.2% in 2012/13. Negative impact of 0.9 percentage point from lower level of capitalization of development expenditures

Q4 2013/14 results

-Revenue EUR 205 million, up 6% on Q4 2012/13

-Organic growth 8%

-EBIT margin before special items 30.0%, compared to 30.7% in Q4 2012/13

Outlook for 2014/15

-Organic revenue growth will be at 7-9% and an EBIT margin before special items will be above 26.5%.

-Research & development expenditures incurred (% of revenue): 7-8%

-Free cash flow before acquisitions and divestments: above EUR 130 million.