Chr. Hansen posts 10% growth in Q3

Source：Chr. Hansen A/S Release Date：2012-07-05 443

Food & Beverage

Global ingredients firm raises outlook for annual growth

COPENHAGEN -- With organic growth of 10% in the first nine months of financial year 2011/12, Chr. Hansen continues its profitable journey and raises its expectations to revenue growth for the year.

"Chr. Hansen reported 10% organic growth for the first nine months of 2011/12 (excluding carmine price effect) and a 19% increase in EBIT. The organic growth (excluding carmine price effect) of 9% in Q3 was slightly better than expected," CEO Lars Frederiksen stated.

In a statement, Mr Frederiksen noted 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%," he said.

Among the highlights of the interim report:

- Revenue was €514 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, 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, 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, Chr. Hansen also said the company’s 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%).

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