Hoersholm, 2015-01-21 08:00 CET (GLOBE NEWSWIRE) --
Company Announcement No. 2
The Interim Report 1Q 2014/15 is hereby enclosed.
“With solid organic revenue growth of 9% in Q1 2014/15, Chr. Hansen has started the year well. The Cultures & Enzymes Division (7% organic growth) performed in line with our long-term expectations and the Health & Nutrition Division (29%) delivered very strong growth albeit on weaker comparables. The Natural Colors Division (4%) grew below expectation.
The implementation of our Nature’s No. 1 strategy continues. We have accelerated our research & development efforts within biological plant protection and we have strengthened the organization in China to support our new go-to-market strategy for cultures and enzymes. Finally, the implementation of the new dedicated sales and application organization in the Natural Colors Division is on track and we expect the performance of the division to improve during the year,” says CEO Cees de Jong.
“We reiterate our expectations for 2014/15 of organic revenue growth of 7-9% and an EBIT margin before special items above 26.5%.”
2014/15 Q1 IN BRIEF
- Revenue EUR 188 million, compared to EUR 171 million in Q1 2013/14, corresponding to organic growth of 9%
- Operating expenses EUR 53 million, compared to EUR 47 million in Q1 2013/14
- Total research & development expenditures incurred EUR 13 million (6.8% of revenue), compared to EUR 11 million (6.7% of revenue) in Q1 2013/14
- EBIT before special items EUR 44 million, compared to EUR 43 million in Q1 2013/14
- EBIT margin before special items 23.1%, compared to 25.2% in Q1 2013/14. The EBIT margin was impacted negatively by 0.5 percentage point by a lower level of capitalization of development costs
- Income taxes EUR 11 million, equivalent to an effective tax rate of 26%, compared to a tax rate of 27% in Q1 2013/14
- Profit for the period EUR 30 million, compared to EUR 29 million in Q1 2013/14
- Negative free cash flow EUR 30 million, compared to a negative EUR 31 million in Q1 2013/14
- Net interest-bearing debt EUR 432 million, or 1.7x EBITDA, compared to EUR 355 million, or 1.4x EBITDA, at 30 November 2013
OUTLOOK FOR 2014/15
The outlook for 2014/15 is unchanged from the announcement of 22 October 2014.
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, divestments and special items above EUR 130 million
