Chr Hansen reports Q3 growth

By Jess Halliday

- Last updated on GMT

Related tags Cent Initial public offering Revenue Chr hansen

Recently floated Chr Hansen has reported 11 percent growth in revenue for the first three quarters of 2009/10, with increased across all three of its business divisions.

Chr Hansen made its initial public offering on Copenhagen’s NASDAQ OMX at the beginning of June, a move billed as heralding the next stage in Chr Hansen’s story, and will facilitate both organic growth and targeted bolt-on acquisitions. It has established more than 5,000 new shareholders.

For the year to date it has reported revenue of €415.3m, up 11 per cent on last year and 12 per cent in organic growth. Q3 growth was 18 per cent up on last year’s comparable period, at €159m.

CEO Lars Frederikson said the results shows the resilience of the company’s business model.

For the full year, the company is expecting operating profit to grow faster than revenue, “mainly due to a more profitable product mix combined with a more efficient production, salts and marketing platform”.

Over the last 9 months expenses increased by some €9.4m (10 per cent) compared to last year. This was due to a combination of factors, including inflation and higher administration costs as a result of being a listed company.

In addition, however, money was spent to strengthen the sales and marketing organisation, and on research and development.

Divisional results

The cultures and enzymes division, which accounts for 63 per cent of revenue, saw 7 per cent growth in revenue over the 9 month period to €259.6m and 8 per cent in Q3 to €94.5m.

Cultures for fermented milk and probiotics were a positive driver for increased sales, while the decision to reduce sales of contract-manufactured animal rennet, as well as price decreased for this rennet, affected enzyme sales.

Favourable product mix and production efficiencies brought a 27 per cent increase in EBIT year-to-date, to 71.3m.

Colours and blends, meanwhile, make up 23 per cent of overall revenue Organic growth in Q3 was 38 per cent, to €39.7m, driven largely by the ongoing switch from synthetic to natural colours across the food industry.

EBIT was up 47 per cent for the year-to-date, to €11.2m.

The health and nutrition division, which is divided by products for human and for animal nutrition, saw revenues of €58.5m year-to-date and €24.8m in Q3.

The human side was positive in all areas, while the animal side saw good growth in probiotics but silage inoculation culture sales were “disappointing”.

Higher R&D and sales expenses came into play in the health and nutrition division, but EBIT still increased by 26 per cent in Q3 and by 20 per cent for the 9 months, to €9.1m and €16m respectively.

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