Chr. Hansen: Announces Interim Report Q1 2021-2022

Hoersholm / DK. (chr) Chr. Hansen Holding A/S announced its interim report Q1 2021/2022 and a solid start to the current financial year. «The encouraging start to the year with organic growth of 9 percent and progress across all business areas and strategic initiatives underlines the strength of our 2025 strategy differentiating us as a bioscience company focused on microbial and fermentation technology platforms,» says CEO Mauricio Graber in his statement. «Food Cultures + Enzymes continued its strong momentum in the first quarter, while Health + Nutrition delivered a strong rebound following a Q4 that fell short of expectations. Ebit b.s.i. developed favorably at 7 percent growth, despite the impact from inflation and a general increase in activities as we reconnected with customers. The Ebit margin b.s.i. was down compared to last year due to the full inclusion of the HMO activities. We maintain our outlook for the full year.»

Q1 2021/22 highlights

  • Revenue amounted to EUR 268 million, up 10 percent from EUR 243 million in Q1 2020/21.
  • Organic growth was 9 percent driven by volume growth. The Lighthouses (Bioprotection, Fermented Plant Bases, Plant Health and HMO) delivered 35 percent organic growth combined, while the remaining Core businesses delivered 7 percent organic growth.
    • Food Cultures + Enzymes organic growth was 7 percent driven by volume.
    • Health + Nutrition organic growth was 13 percent driven by volume.
  • Ebit b.s.i. amounted to EUR 65 million, up 7 percent from EUR 61 million in Q1 2020/21. The increase was driven by Food Cultures + Enzymes, while Ebit b.s.i. in Health and Nutrition was at the Q1 2020/21 level due to a negative impact from Jennewein (HMO), which was only partly reflected in Q1 2020/21 (acquisition was closed on October 9, 2020).
  • The Ebit margin b.s.i. was 24.4 percent, down from 25.2 percent in Q1 2020/21. Production efficiencies and scalability effects from the solid sales performance were offset by higher input costs not yet reflected in the sales prices, a general ramp- up of activities including travel, and the full inclusion of HMO.
  • Implementation of price adjustments to reflect the current inflationary pressure is progressing as planned in close collaboration with our customers and is expected to have an effect from Q2 onwards.
  • Free cash flow before acquisitions and special items (b.a.s.i.) amounted to EUR 55 million, up EUR 62 million from Q1 2020/21. The increase was due to both an improved cash flow from operating activities and lower operational investing activities.
  • Bacthera entered into an agreement with Seres Therapeutics for the commercial manufacturing of SER-109, a potential treatment against recurrent C. difficile infection.
  • Chr. Hansen launched its science-based climate targets to reduce its carbon footprint towards 2030.

Outlook

The outlook for 2021/22 remains unchanged from the original guidance provided on October 14, 2021.

  • Organic growth is expected in the range of 5-8 percent.
  • Ebit margin before special items is expected to be 27-28 percent.
  • Free cash flow before special items is expected to be around EUR 140-170 million.