Hoersholm, 2013-07-03 08:00 CEST (GLOBE NEWSWIRE) --
Company announcement no.17/2013
“The Chr. Hansen Group delivered organic growth of 9% excluding carmine price effect in the first nine months of 2012/13. In Q3 the organic growth excluding carmine price effect was 8%. The Cultures & Enzymes Division realized 7% growth in line with the long term organic growth expectations for the division. Both the Health & Nutrition Division and the Natural Colors Division delivered double digit growth. For the full year 2012/13 we expect organic growth excluding carmine price effect of 8-9% (previously 8-10%), says CEO Cees de Jong.
Operating profit (EBIT) margin before impairments was at 25.9% slightly below last year (26.2%) as we continue to invest in attractive future growth opportunities. For the full year 2012/13 we expect an EBIT margin before special items and impairments around 27% (previously above last year).”
Highlights YTD 2012/13
- Revenue of EUR 545 million, up 6% compared to the first nine months of 2011/12. Organic growth of 6% (9% excluding carmine price effect)
- Impairment of EUR 8 million in Q2 2012/13 relating to clinical studies on gastrointestinal health
- EBIT of EUR 133 million, down 1% compared to the first nine months of 2011/12. EBIT margin of 24.4% compared to 26.2% last year. The EBIT margin before impairments reached 25.9%
- Profit for the period of EUR 88 million compared to EUR 92 million the first nine months of 2011/12. Diluted earnings per share of EUR 0.66 compared to EUR 0.67 in the first nine months of 2011/12
- Capital expenditure of EUR 47 million, corresponding to 8.6% of revenue, up from EUR 43 million in the first nine months of 2011/12
- Research & Development expenditures incurred of EUR 35 million, corresponding to 6.5% of revenue compared to EUR 37 million or 7.2% of revenue in the first nine months of 2011/12
- Net working capital of EUR 138 million equal to 18.9% of revenue compared to EUR 135 million or 20.0% of revenue at 31 May 2012
- Free cash flow of EUR 52 million compared to EUR 47 million in the first nine months of 2011/12
- Net interest-bearing debt of EUR 407 million corresponding to 1.7x EBITDA compared to 1.8x EBITDA at 31 May 2012
- Q3 2012/13 revenue was EUR 192 million, up 6% compared to Q3 last year. Organic growth was 7% (8% excluding carmine price effect). EBIT margin of 27.6% compared to 28.5% in Q3 last year. Free cash flow amounted to EUR 46 million compared to EUR 36 million in Q3 2011/12
- Chr. Hansen has entered into an agreement of acquiring the remaining 50% of the Turkish subsidiary; Peyma Chr-Hansen’s A.S. The acquisition will strengthen the company’s activities in the strategically important Turkish market for cultures, enzymes and natural colors
- Member of the Executive Board, Carsten Hellmann (EVP Global Sales) has resigned and will leave Chr. Hansen on 31 August 2013.
OUTLOOK 2012/13 ADJUSTED
The expectation to organic growth excluding carmine price effect has been narrowed to 8-9%. Raw material prices for carmine declined during the year and average sales prices for carmine have been lower in 2012/13 than expected at the beginning of the year. Accordingly organic growth including carmine price effect is now expected to be in the range of 6-7%. EBIT margin before special items and impairments is now expected to be around 27%.
