Positive start to the year

With solid organic revenue growth of 9% in Q1 2014/15, Chr. Hansen has started the year well

Says CEO Cees de Jong, 'With solid organic revenue growth of 9% in Q1 2014/15, Chr. Hansen has started the year well. The Cultures & Enzymes Division (7% organic growth) performed in line with our long-term expectations and the Health & Nutrition Division (29%) delivered very strong growth albeit on weak comparables. The Natural Colors Division (4%) grew below expectation.'

He added: 'The implementation of our Nature’s No. 1 strategy continues. We have accelerated our research and development efforts within biological plant protection and we have strengthened the organisation in China to support our new go-to-market strategy for cultures and enzymes. Finally, the implementation of the new dedicated sales and application organization in the Natural Colors Division is on track and we expect the performance of the division to improve during the year.'

'We reiterate our expectations for 2014/15 of organic revenue growth of 7-9% and an EBIT margin before special items above 26.5%.'

Highlights Q1 2014/15

• Revenue €188 million, up 10% on Q1 2013/14
• EBIT before special items, €44 million, compared with €43 million in Q1 2013/14
• EBIT margin before special items, 23.1%, compared with 25.2% in Q1 2013/14. The EBIT margin was impacted negatively by 0.5 percentage point by a lower level of capitalisation of development costs.

The outlook for 2014/15 is unchanged from the announcement of 22 October 2014. Organic revenue growth is expected to be 7-9%.

Companies

• Chr Hansen