Solid momentum continues: 9 % organic growth in the first 6 months of 2018/19

Chr. Hansen delivers solid half-year result of 9 % organic growth and maintains overall outlook for the full year.The growth comes from all business areas: Food Cultures & Enzymes 10 %, Health & Nutrition 11 % and Natural Colors 5 %

Solid organic revenue growth of 9 % in the first half of 2018/19: Food Cultures & Enzymes 10 %, Health & Nutrition 11 % and Natural Colors 5 %. EBIT before special items increased by 10 % to EUR 150 million, corresponding to an EBIT margin before special items of 27.0 % up 0.8 %-point compared to last year. In Q2, organic growth was 8 %, and EBIT before special items increased by 11 %. The overall outlook for 2018/19 remains unchanged.

CEO Mauricio Graber says: “We continued the solid momentum, with Food Cultures & Enzymes delivering strong organic growth with an increasing contribution from volume in Q2, which was in line with our expectations. Towards the end of Q2, we launched CHY-MAX^® Supreme, a truly innovative enzyme which raises the bar for what cheesemakers can expect from coagulants. Organic growth in Health & Nutrition was solid and with a more balanced growth contribution between Human Health and Animal Health compared to what we saw in Q1, although livestock farming economics in North America remain challenging. Yesterday, we announced a joint-venture with Lonza AG, which marks a quantum leap for Chr. Hansen’s Human Microbiome lighthouse and which will create a global pioneer and partner of choice for production of live biotherapeutic products. In Natural Colors we secured important conversions in North America, but this was to some extent offset by weaker demand from Latin America in particular.”

“Our EBIT margin before special items in the first half of the year increased by 0.8 %-point and was driven by improved margins in all business areas. In FC&E, we achieved a gross margin benefit of more than 1 %-point from the ramp up of the new capacity in our facility in Copenhagen, which more than offsets the increasing investments we are making in the business. We continue to pursue strong and profitable organic growth while also investing significantly for the future.

“The progress in the first half year makes us confident about our overall outlook, which is maintained and in line with our long-term financial ambition.”