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CHR - Chr Hansen Holding A/S News Story

DKK546.2 4.4  0.8%

Last Trade - 12/05/21

Sector
Consumer Defensives
Size
Large Cap
Market Cap £8.34bn
Enterprise Value £9.77bn
Revenue £792.4m
Position in Universe 85th / 1832

Denmark's Chr Hansen posts disappointing profit, cuts sales outlook

Thu 27th June, 2019 7:53am
COPENHAGEN, June 27 (Reuters) - Danish food ingredients
maker Chr Hansen  CHRH.CO  reported quarterly profit fell short
of forecasts and cut its revenue outlook for the year, hurt by a
disappointing performance at its food colouring and animal
health businesses.
     Chr. Hansen, which produces enzymes and bacteria for the
dairy, wine and meat industries, is one of the world's top three
producers of probiotics for animals, alongside Dupont and
Lallemand. 
    In a statement late on Wednesday, the company said it 
expects 7-8% organic sales growth for the year ending in August,
down from its previous forecast of 9-11% growth. It kept its
target of an EBIT margin before special items of around 29.5%.
    Third-quarter operating profit before special items rose
9%to 91.7 million euro ($104.13 million) but was about 3% lower
than the average analyst forecast, Refinitiv data showed. Net
profit in the third quarter rose 10% to 66.5 million euros.    
    The company's colours business has suffered from slowing
growth after a period of benefiting from higher demand for
natural products from foodmakers and consumers in recent years.
Chr Hansen also cited a weaker environment in emerging markets.
    The sales warning prompted J.P. Morgan to cut its rating on
the company to underweight from neutral.
    "While margin disappointments in past quarters have largely
been ignored by the market, a degradation in top-line cannot be
ignored this time around," the analysts said in a research note.
  
($1 = 0.8807 euros)

 (Reporting by Stine Jacobsen, editing by Deepa Babington)
 ((stine.jacobsen@thomsonreuters.com; +45 21 56 90 10; Reuters
Messaging: stine.jacobsen.thomsonreuters.com@reuters.net))
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