Hoersholm, 2013-10-23 07:59 CEST (GLOBE NEWSWIRE) --
Company announcement no. 24/2013
“The Chr. Hansen Group delivered solid results in 2012/13 with organic growth of 9% excluding carmine price effect and an EBIT margin before impairment of 27.2%. The performance in the past year provides a strong platform for future success and with our Nature’s No. 1 strategy we are ready to take Chr. Hansen to the next level,” says CEO Cees de Jong.
“For 2013/14 we expect organic revenue growth of 7-9% and an EBIT margin before special items above 26%.”
Highlights 2012/13
- Revenue EUR 738 million, up 6% on 2011/12. Organic growth 7% (9% excluding carmine price effect)
- EBIT EUR 193 million, compared to EUR 185 million in 2011/12
- EBIT margin 26.1%, down from 26.5% in 2011/12. EBIT margin before impairment 27.2%, unchanged from 2011/12
- Income taxes EUR 37 million, equivalent to an effective tax rate of 21%, compared to 24% in 2011/12. One-off adjustments to deferred taxes as a consequence of a change in the Danish corporate income tax rate reduced the effective tax rate by 4 percentage points
- Profit for the year EUR 140 million, compared to EUR 131 million in 2011/12. Diluted earnings per share EUR 1.04, compared to EUR 0.95 in 2011/12
- Capital expenditures EUR 71 million, or 9.6% of revenue, compared to EUR 64 million, or 9.1%, in 2011/12
- Incurred research & development expenditures amounted to EUR 45 million, or 6.1% of revenue, compared to EUR 47 million, or 6.7%, in 2011/12. An impairment loss of EUR 8 million was recognized in respect of capitalized development costs for two clinical studies on gastrointestinal health. Chr. Hansen has reassessed the capitalization of development expenditures. Based on this reassessment, a higher proportion of development expenditures is expected to be expensed in 2013/14
- Net working capital EUR 108 million, or 14.6% of revenue, compared to EUR 99 million, or 14.1%, in 2011/12
- Free cash flow EUR 120 million, compared to EUR 113 million in 2011/12
- Net interest-bearing debt EUR 352 million, or 1.4x EBITDA, compared to 1.5x EBITDA at 31 August 2012
- An ordinary dividend for 2012/13 of EUR 0.42 (DKK 3.13) per share, or a total of EUR 55 million, is proposed. This dividend is equivalent to 40% of the profit for the year. In addition, an extraordinary dividend of EUR 0.42 (DKK 3.13) per share, or a total of EUR 55 million, is proposed
- Q4 2012/13 results: Revenue EUR 194 million, up 5% on 2011/12. Organic growth 10% (12% excluding carmine price effect). EBIT margin before impairment 30.7%, up from 29.8% in 2011/12. Free cash flow EUR 68 million, compared to EUR 67 million in 2011/12
OUTLOOK FOR 2013/14
Organic revenue growth is expected to be 7‐9%.
Research & development expenditures incurred as a percentage of revenue are expected to move towards 7% of revenue from 6.1% in 2012/13. Chr. Hansen has reassessed the capitalization of development expenditures. Based on this reassessment, a higher proportion of development expenditures is expected to be expensed in 2013/14. The increased research & development activity and lower level of capitalization are estimated to reduce the EBIT margin by 1-1.5 percentage points.
The EBIT margin before special items is expected to be above 26%.
Free cash flow before acquisitions and divestments is expected to be at the same level as in 2012/13.
Forward-looking statements
This report contains forward-looking statements. Such statements are subject to risks and uncertainties, as various factors, many of which are beyond the control of Chr. Hansen Holding A/S, may cause actual developments and results to differ materially from the expectations expressed in this report.
Governing text
The report has been prepared in English and Danish. The Danish text shall govern for all purposes and prevail in the event of any discrepancy between the versions.
About Chr. Hansen
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 2012/13 financial year was EUR 738 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 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. For further information, please visit www.chr-hansen.com.
