January 14, 2011
Chr. Hansen reports strong growth in Q1 (Press Release)
Chr. Hansen experienced solid growth in its first quarter from September 1, 2010 to November 30, 2010.
Compared to the same period last year Chr. Hansen's revenue increased 22%, which totalled EUR156 million (US$208 million), corresponding to organic growth of 16%. Chr. Hansen raises its expectations to revenue growth this financial year.
Operating profit (EBIT) before special items increased by 22% to EUR35 million (US$47 million). Operating profit (EBIT) margin before special items was 23%, unchanged from Q1 2009/10.
"I am very pleased to report that based on the performance in Q1 and in particular the strong evolution in our colour business the organic revenue outlook for the group for 2010/11 has been revised upwards, from 8-10% to 11-13%," says CEO Lars Frederiksen. "The financial year 2010/11 has started positively with strong organic growth in all three divisions. Strong demand for DVS® cultures is driving results in Cultures & Enzymes. Health & Nutrition benefited from the continued interest for probiotics while the pronounced consumer preference for natural colours resulted in organic growth of 46% in Colours & Blends."
The Cultures & Enzymes Division accounted for 60% of group revenue in Q1 2010/11 and revenue growth of 12% compared to the same period last year, corresponding to organic growth of 6%. Growth was driven primarily by yoghurt, cheese and wine cultures, notably in the Asia-Pacific region and North America.
Accounting for 12% of group revenue, the Health & Nutrition Division experienced organic growth of 13% and revenue growth of 16% in Q1 2010/11. The division had particularly strong growth from the human health area.
Revenue in the Colours & Blends Division grew by 56% in Q1 2010/11, corresponding to organic growth of 46%, primarily driven by the conversion to natural colours. The Colours & Blends Division accounted for 28% of group revenue.
Chr. Hansen experienced solid revenue growth in all its regions including emerging geographies as well as mature markets.
