Chr Hansen Holding A/S logo

CHR - Chr Hansen Holding A/S News Story

DKK560.6 -12.6  -2.2%

Last Trade - 06/05/21

Sector
Consumer Defensives
Size
Large Cap
Market Cap £8.77bn
Enterprise Value £10.20bn
Revenue £794.5m
Position in Universe 86th / 1831

UPDATE 1-Shares of Denmark's Chr Hansen tumble after sales warning

Thu 27th June, 2019 8:38am
(Recasts with share price fall)
    COPENHAGEN, June 27 (Reuters) - Shares in Danish food
ingredients maker Chr Hansen  CHRH.CO  slumped 13% after it
reported disappointing quarterly profit and cut its sales
outlook for the year, hurt by a poor 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.   
    Chr Hansen shares fell around 13% in early trade on
Thursday, trading at the bottom of the Stoxx 600 index  .STOXX 
and set for its worst one-day performance.  urn:newsml:reuters.com:*:nL8N23Y1HH
    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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