After solid growth in the fourth quarter Chr. Hansen announces strong full-year results that match the expectations for the year.
“Chr. Hansen continues to deliver solid growth and strong margins. In 2013/14, organic growth was 8%, while the EBIT margin before special items ended at 27.1%. The Cultures & Enzymes Division and the Health & Nutrition Division delivered solid organic growth of 8% and 15% respectively, while the Natural Colors Division delivered organic growth of 2% excluding carmine price effect.
The implementation of our Nature’s No. 1 strategy saw good progress during 2013/14 and we will take this further in 2014/15, with increasing investment in our new strategic initiatives for biological plant protection and the establishment of a dedicated sales and application organization in the Natural Colors Division,” says CEO Cees de Jong.
2013/14 in brief
• 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
Fourth quarter 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
For 2014/15 we expect organic revenue growth of 7-9% and an EBIT margin before special items is expected to be above 26.5%. Research & development expenditures incurred (% of revenue): 7-8%
Free cash flow before acquisitions and divestments: above EUR 130 million
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 2013/14 financial year was EUR 756 million. The company holds a leading market position in all its divisions: Cultures & Enzymes, Health & Nutrition and Natural Colors. It has more than 2,500 dedicated employees in over 30 countries and main production facilities in Denmark, France, USA and Germany. Chr. Hansen was founded in 1874 and is listed on NASDAQ OMX Copenhagen.