Hoersholm, 2014-04-09 08:00 CEST (GLOBE NEWSWIRE) --
Company announcement no. 15/2014
“Following a strong Q2 with 10% organic growth and solid margin development we remain on track to deliver on our outlook for the full year, expecting organic revenue growth of 7-9% and an EBIT margin before special items above 26%. We have continued to implement our Nature’s No. 1 strategy with initiatives to support the future growth and profitability of Chr. Hansen. I am especially pleased with the good performance of both the Cultures & Enzymes Division and the EMEA region in general as well as to see the first sales of cultures for crop protection,” says CEO Cees de Jong.
Highlights YTD 2013/14
- Revenue EUR 353 million, unchanged from 1H 2012/13, corresponding to organic growth of 6%. Revenue negatively affected by exchange rate effects, primarily related to BRL, USD and AUD
- Operating expenses EUR 97 million, compared to EUR 102 million in 1H 2012/13. Last year’s operating expenses were impacted by impairment charges of EUR 8 million. Before impairments, expenses increased by 3%
- EBIT before special items and impairments EUR 88 million, corresponding to an EBIT margin before special items and impairments of 25.0%, both unchanged from last year. Negative impact of 1.4 percentage points from increased research & development activity and a lower level of capitalization
- Special items negative EUR 4.0 million in 1H 2013/14 related to optimization of the organization and business processes
- EBIT EUR 84 million, compared to EUR 80 million in 1H 2012/13. EBIT margin 23.9% compared to 22.7% last year
- Income taxes EUR 21 million, equivalent to an effective tax rate of 27%, unchanged from 1H 2012/13
- Profit for the period EUR 56 million, compared to EUR 53 million in 1H 2012/13. Diluted earnings per share EUR 0.42, compared to EUR 0.39 last year
- Capital expenditures EUR 26 million, or 7.5% of revenue, compared to EUR 30 million, or 8.6%, in 1H 2012/13
- Incurred research & development expenditures EUR 25 million, or 6.9% of revenue, up from 6.6% in 1H 2012/13
- Net working capital EUR 150 million, or 20.3% of revenue, compared to EUR 139 million, or 19.3%, in 1H 2012/13
- Free cash flow EUR 1 million, compared to EUR 6 million in 1H 2012/13
- Net interest-bearing debt EUR 446 million, or 1.8x EBITDA, compared to 1.8x EBITDA at 28 February 2013
- Q2 2013/14 results: Revenue EUR 182 million, up 4% on last year. Organic growth 10%. EBIT margin before special items and impairments 24.8%, up from 23.3% last year. Free cash flow EUR 32 million, compared to EUR 33 million last year.
OUTLOOK FOR 2013/14
The outlook for 2013/14 is unchanged from the announcement of 15 January 2014.
Organic revenue growth:7‐9%
Research & development expenditures incurred (% of revenue): toward 7%
Negative impact on EBIT margin from increased research & development activity and lower level of capitalization: 1-1.5%-point
EBIT margin before special items:above 26%
Special items (cost): EUR 8-10 million
Free cash flow before acquisitions and divestments: around EUR 110 million
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. 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, the US and Germany. Chr. Hansen was founded in 1874 and is listed on NASDAQ OMX Copenhagen. For further information, please visit www.chr-hansen.com.
