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Chr. Hansen Boosts 2011/2012 Outlook
Posted: July 5, 2012
Chr. Hansen Holding A/S raised its full-year revenue growth outlook for 2011/2012, thanks in part to growing demand for natural colors in food and beverages.
For the third quarter 2011/12, the Danish supplier said revenue growth continues to be driven by increased demand for healthy food products as a result of the growing middle income population in emerging markets and the move from in-house bulk starter to industrialized produced cultures and from synthetic to natural colors.
For the full year 2011/12, Chr. Hansen now projects organic revenue growth, excluding the effect from the change in raw material prices for carmine, in the range of 9–11%, or a growth of 6–8% including the carmine price effect. On April 19, the company had previously forecasted organic growth of 8–10%, excluding the carmine price effect, or 5–7% growth including the carmine price effect.
Also in its report, the company said third-quarter total revenue rose 6.7% to €181.2 million compared to Q3 2010/11. Its natural colors division posted quarterly revenue of €43.4 million, reflecting organic growth of 10%, excluding the carmine price effect. Including the carmine price effect, quarterly organic growth for the natural colors division was down 5% compared to Q3 2010/11. Still, year-to-date organic revenue for the division grew 3%, including the carmine price effect. Excluding the carmine price effect, year-to-date organic revenue was up 12% for the unit.
Chr. Hansen’s EBIT, or earnings before interest and taxes, climbed 19% to €51.7 million in the third quarter 2011/12 compared to the same quarter last year.