Statement of Results 2013/14 - 1 September 2013 - 31 August 2014


Hoersholm, 2014-10-22 08:00 CEST (GLOBE NEWSWIRE) --  

Company announcement No. 38

“Chr. Hansen continues to deliver solid growth and strong margins. In 2013/14, organic growth was 8%, while the EBIT margin before special items ended at 27.1%. The Cultures & Enzymes Division and the Health & Nutrition Division delivered solid organic growth of 8% and 15% respectively, while the Natural Colors Division delivered organic growth of 2% excluding carmine price effect. The implementation of our Nature’s No. 1 strategy saw good progress during 2013/14 and we will take this further in 2014/15, with increasing investment in our new strategic initiatives for biological plant protection and the establishment of a dedicated sales and application organization in the Natural Colors Division,” says CEO Cees de Jong.

“For 2014/15 we expect organic revenue growth of 7-9% and an EBIT margin before special items above 26.5%.”

2013/14 IN BRIEF

  • Revenue EUR 756 million, compared to EUR 738 million in 2012/13, corresponding to organic growth of 8%. Revenue negatively impacted by exchange rate effects, primarily related to BRL, USD and AUD
  • Operating expenses EUR 187 million, compared to EUR 192 million in 2012/13. The 2012/13 figure was impacted by impairment charges of EUR 8 million. Before impairments, expenses increased by 1% 
  • EBIT before special items and impairments EUR 205 million, compared to EUR 201 million in 2012/13. EBIT margin before special items and impairments 27.1%, compared to 27.2% in 2012/13. Negative impact of 0.9 percentage point from lower level of capitalization of development expenditures
  • Special items negative EUR 10 million, related to optimization of the organization and business processes. There were no special items in 2012/13
  • Income taxes EUR 49 million, equivalent to an effective tax rate of 27%, compared to EUR 37 million in 2012/13, which was positively affected by one-off adjustments of EUR 8 million to deferred taxes
  • Profit for the year EUR 132 million, compared to EUR 140 million in 2012/13
  • Free cash flow EUR 115 million, compared to EUR 120 million in 2012/13. Free cash flow negatively impacted by special items of EUR 10 million
  • Net interest-bearing debt EUR 404 million, or 1.6x EBITDA, compared to EUR 352 million, or 1.4x EBITDA, at 31 August 2013
  • EUR 80 million share buy-back program concluded on 22 August 2014. An ordinary dividend for 2013/14 of EUR 0.51 (DKK 3.77) per share, or a total of EUR 66 million, is proposed. This dividend is equivalent to 50% of the profit for the year
  • Nature’s No. 1 strategy launched in September 2013
  • Q4 2013/14 results: Revenue EUR 205 million, up 6% on Q4 2012/13. Organic growth 8%. EBIT margin before special items 30.0%, compared to 30.7% in Q4 2012/13. Free cash flow  EUR 73 million, compared to EUR 68 million in Q4 2012/13

OUTLOOK FOR 2014/15

Organic revenue growth                                                                   7-9%

Research & development expenditures incurred (% of revenue)     7-8%

EBIT margin before special items                                                     above 26.5%

Free cash flow before acquisitions and divestments                        above EUR 130 million

 

The Annual Report for 2013/14 was released today, 22 October 2014, and is available from www.chr-hansen.com.


Attachments

Corporate Governance Statement.pdf Annual Report 201314.pdf No 38 2014 US.pdf