Chr. Hansen realized strong organic revenue growth of 10% in the first nine months of 2016-17 and, based on this achievement, has updated its organic revenue expectations for the year to 9-10% versus 8-10% previously.
“We continue to grow our business, with Food Cultures & Enzymes and Health & Nutrition performing slightly better than expected. Based on this, we have narrowed our organic revenue expectations for 2016-17 to 9-10% from previously 8-10%. Both Food Cultures & Enzymes and Natural Colors delivered further improvements in profitability, while Health & Nutrition showed a solid margin progression in (the third quarter). The capacity expansion for dairy cultures in Copenhagen (Denmark) is on track, and we are preparing for the final implementation later this year,” Chr. Hansen chief executive officer Cees de Jong said. “It is exciting to see that we are making solid progress in the area of the human microbiome, where we have recently expanded our strain library with lead candidates targeting gastrointestinal, immune and metabolic health. Adding these novel bacterial strains to our portfolio is a major milestone in developing the next-generation probiotics.”
The company also said, given the strong operational performance and free cash flow generation, it has decided to declare an interim dividend totaling 100 million euros. The interim dividend will be paid out July 13, 2017.
Chr. Hansen is a global bioscience company that develops natural ingredient solutions for the food, nutritional, pharmaceutical and agriculture industries. The products include cultures, enzymes, probiotics and natural colors, and all solutions are based on strong research and development competencies coupled with significant technology investments. Revenue in the 2015-16 financial year was 949 million euors. The company has 3,000-plus employees in more than 30 countries and has main production facilities in Denmark, France, the U.S. and Germany. Chr. Hansen was founded in 1874.