In spite of the general economic recession Chr. Hansen continues to experience solid growth, with sales in local currencies increased by 12% to EUR128 million (US$181.7 million), corresponding to a growth of 6% in EUR.

Better product mix and improved margins resulted in a 19% growth in EBITDA, while EBIT increased by 30% despite negative currency development.

• 12% growth in local currencies (adjusted for acquisitions and divestments)
   
• All three divisions experienced double digit growth rates
   
• EBITDA before special items increased by 19% to EUR40 million (US$56.7 million)
   
• EBITDA margin was 30.9% compared to 27.4% in the corresponding period last year
   
• EBIT increased by 30% to EUR28 million (US$39.7 million)

Sales within Chr. Hansen's largest business division, Cultures and Enzymes Division have shown growth in local currencies of 10%. The sales growth is driven by conversion to advanced culture solutions in all markets.

The Health and Nutrition Division, selling probiotics to the food supplement and agricultural industries, has increased sales in local currencies by 25%.

EBITDA before special items improved by 19% and EBIT by 30% due to increased volumes, gross margin improvement and cautious cost management. The free cash flow developed positively and hence, net interest bearing debt was reduced further, from EUR923 million (US$1.31 billion) to EUR827 million (US$1.17 billion).

The group continues to focus on research and development and during the quarter the innovation pipeline has been further strengthened. For the full fiscal year 2009-10, sales growth is expected to continue in line with previous years. Profitability is expected to grow faster than sales.