Chr. Hansen reports "strong" growth27 Oct 2016
Chr. Hansen has reported what the company described as “strong” organic growth of 12% in the financial year 2015/16, delivering at the upper end of its growth ambitions.
Chr. Hansen has reported what the company described as “strong” organic growth of 12% in the financial year 2015/16, delivering at the upper end of its growth ambitions.“2015/16 was overall a good year for Chr. Hansen,” said CEO Cees de Jong. “We reaffirmed the short- and long-term growth opportunities through our strategic review, and our financial performance was strong. Organic growth reached 12% and the EBIT margin before special items ended at 28.2%, up from 27.1% the year before. Finally, free cash flow before special items and acquisitions was EUR 175 million, an improvement of 16% despite our continued investments in future growth. So I can only be pleased with how we performed in 2015/16.” “Food Cultures & Enzymes and Natural Colors both delivered strong growth and significant improvements in profitability, which show the attractiveness of both businesses. In Health & Nutrition, organic growth and profitability were below our expectations, but only due to challenging market conditions in the agricultural sector. The long-term growth outlook for all market segments in Health & Nutrition remains very positive and we continue to build on our technology platform to capture these opportunities.”“Over the last 12 months, we have acquired two highly attractive assets that complement our existing business. However, our key focus is still securing organic growth and cash generation, and we have made good progress in our strategic projects across all businesses. We expect 2016/17 to be another good year for Chr. Hansen. Organic revenue growth is expected to be 8-10% and the EBIT margin before special items is expected to be slightly above the 28.2% achieved in 2015/16.”Revenues were €949 million, compared to €859 million in 2014/15, corresponding to organic growth of 12%. Food Cultures & Enzymes saw 12% organic growth; Health & Nutrition 2% organic growth; and Natural Colors 19% organic growth.Profit for the year was €184 million, compared to €163 million in 2014/15.In the fourth quarter, revenue was €256 million, compared to €234 million in Q4 2014/15, corresponding to organic growth of 9%. Food Cultures & Enzymes saw 11% organic growth; Health & Nutrition 0% organic growth; and Natural Colors 16% organic growth.Profit for the period was €56 million, compared to €52 million in Q4 2014/15.Chr. Hansen forecasts organic revenue growth of 8-10% for the coming financial year, with EBIT margin before special items slightly above the 28.2% achieved in 2015/16.
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