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CHR - Chr Hansen Holding A/S News Story

DKK573.2 3.8  0.7%

Last Trade - 05/05/21

Consumer Defensives
Large Cap
Market Cap £8.73bn
Enterprise Value £10.17bn
Revenue £796.1m
Position in Universe 81st / 1836

Chr. Hansen Holding A/S Interim report Q2 2020/21

Thu 15th April, 2021 7:01am
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Continued strong organic growth momentum leads to upwards narrowing of
full-year organic growth guidance  
* Q2 2020/21 organic sales growth was 10%, equally split between volume/mix
and price, and driven by Health & Nutrition which delivered 14% growth while
Food Cultures & Enzymes delivered 8% growth
* Underlying EBIT margin b.s.i.(1)) of 30.9%, incl. >1%-point negative
currency impact, compared to 32.2% in Q2 2019/20. Reported EBIT margin b.s.i.
(incl. all acquisition impacts) was 27.0%
* Integration of commercial activities in UAS/HSO is completed and integration
of manufacturing is progressing
* HMO capacity expansion in Germany on track, while delays in product
registrations and regulatory approvals remain a constraint on market
development; the market opportunity long-term is unchanged
* Full-year outlook for organic growth adjusted to 6-8% (previously 5-8%),
free cash flow narrowed upwards to EUR 140-160 mio, EBIT margin guidance
unchanged, and impacts from acquisitions also unchanged from Q1
CEO Mauricio Graber says: “In our second quarter we delivered strong organic
growth on a more demanding comparable from last year, with continued good
momentum in both business areas. Our business in Asia-Pacific delivered 10%
organic growth
fueled by Health & Nutrition, providing reassurance that we can grow the
region strongly even as the Chinese yogurt market is still in decline.
Customer engagement, both in China and globally, remains high despite the
current difficulties of in person interactions.

Through the acquisitions we have done, we are building a more balanced
business globally between Food Cultures & Enzymes and Health & Nutrition.
We’ve continued the integration of the acquired businesses and have recently
completed a major milestone in the divestment of Natural Colors, and we are
executing our strategy of becoming a focused bioscience company based on a
unique microbial and fermentation technology platform.

Following the divestment of Natural Colors, we have initiated the process for
paying out an extraordinary dividend of around EUR 116 million, and payment
of the dividend is expected to be effected during the month of May.

In Q2 we progressed on our innovation agenda with many new patents, trademarks
and registrations, and in Q3 we will be launching the next generation of
bioprotection for fermented milks and certain cheeses.

As a result of the strong organic growth in the first half of 2020/21, and
despite the uncertainties lingering from COVID-19, we have narrowed upwards
our full-year outlook for organic growth, and we expect that Q4 to be the
stronger of the two remaining quarters, primarily as Q3 of last year had a
tailwind effect from customers building COVID-19 related safety

Outlook for 2020/21

Organic revenue growth 6-8%

EBIT margin before special items 27-28%

Free cash flow before special items, acquisitions and divestments EUR 140-160

For further information, please contact:

Martin Riise, Head of IR

+45 53 39 22 50

Annika Stern, Senior IR Officer

+45 23 99 23 82

About Chr. Hansen

Chr. Hansen is a global, differentiated bioscience company that develops
natural ingredient solutions for the food, nutritional, pharmaceutical and
agricultural industries. At Chr. Hansen we are uniquely positioned to drive
positive change through microbial solutions. We have worked for over 145 years
to enable sustainable agriculture, cleaner labels and healthier living for
more people around the world. Our microbial and fermentation technology
platforms, including our broad and relevant collection of around 40,000
microbial strains, have game-changing potential. Matching customer needs and
global trends we continue to unlock the power of good bacteria to respond to
global challenges such as food waste, global health and the overuse of
antibiotics and pesticides. As the world’s most sustainable food ingredients
company, we touch the lives of more than 1 billion people every day. Driven by
our legacy of innovation and curiosity to pioneer science, our purpose – To
grow a better world. Naturally. – is at the heart of everything we do.

*     Chr. Hansen Interim Report Q2 2020_21
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