Hoersholm, Denmark, 2011-01-12 08:02 CET (GLOBE NEWSWIRE) -- “The financial year 2010/11 has started positively with strong organic growth in all three divisions and we have upgraded our expectations for the full year. Strong demand for DVS® cultures is driving results in Cultures & Enzymes. Health & Nutrition benefited from the continued interest for probiotics while the pronounced consumer preference for natural colors has resulted in an organic growth of 46% in Colors & Blends,” says CEO Lars Frederiksen.
“EBIT margins were improved in Cultures & Enzymes and Health & Nutrition and despite significantly higher raw material costs for carmine, which have negatively impacted our margins in Colors & Blends, we are on track to deliver our outlook for 2010/11”.
“Based on the performance in Q1 and in particular the strong evolution in our color business the organic revenue outlook for the group for 2010/11 has been revised upward, from 8-10% to 11-13%.”
Highlights:
(In parentheses the corresponding figures for Q1 2009/10)
• Revenue in Q1 2010/11 amounted to EUR 156 million, up 22% compared to Q1 2009/10
• Organic revenue growth of 16%, was positively affected by around 5.5 percentage points from higher raw material prices for carmine partly offset by negative effect of around 2 percentage points from euro pricing in certain countries
• Operating profit (EBIT) before special items up by 22% to EUR 35 million (EUR 29 million) corresponding to an operating profit (EBIT) margin before special items at 23%, unchanged from Q1 2009/10
• Net working capital increased by EUR 46 million mainly due to higher activity and increased raw material prices
• The outlook for the financial year 2010/11 has been revised upward compared to the outlook given in announcement of 2 November 2010. Revenue is expected to grow organically by 11-13% (previously 8-10%). Operating profit (EBIT) margin before special items is still expected to be above 25% while net working capital is still expected to be 14-17% of revenue
• Henning Jakobsen, CFO has decided to leave Chr. Hansen in order to pursue a more operational career opportunity with a multinational company outside Denmark. Mr. Jakobsen will continue in his current role until September 30, 2011
Conference call
Chr. Hansen will host a conference call on January 12, 2011 at 9:30 am CET. The conference call can be accessed at our home page www.chr-hansen.com.
Lars Frederiksen, CEO
Tel: +45 45 74 74 74
Henning Jakobsen, CFO
Tel: +45 45 74 74 74
Anders Mohr Christensen, Investor Relations
Tel: +45 45 74 76 18
