Hoersholm, 2013-04-11 08:00 CEST (GLOBE NEWSWIRE) --
Company Announcement No. 11/2013
“The Chr. Hansen Group delivered organic revenue growth of 9% (excluding carmine price effect) in the first half of 2012/13.
Preliminary analysis of two clinical studies relating to gastrointestinal health has been finalized. Despite indications of positive results the studies’ primary end points were not met and consequently the data is assessed to be insufficient for approval of an EU health claim. Therefore impairment of capitalized development costs of EUR 8 million has been made in Q2.
Operating profit (EBIT) margin before impairment was at 25.0% at the same level as last year. We remain committed to achieve improved profit margins through scalability and our outlook for 2012/13 is unchanged. We expect organic revenue growth between 8-10% (excluding carmine price effect) and an EBIT margin before special items and impairments above 2011/12,” says CEO Cees de Jong.
Highlights 1H 2012/13
- Revenue of EUR 353 million, up 6% compared to the first half of 2011/12. Organic growth of 6% (9% excluding carmine price effect)
- Impairment of EUR 8 million relating to clinical studies on gastrointestinal health impacting Q2
- EBIT of EUR 80 million, down 3% compared to the first half of 2011/12. The EBIT margin of 22.7% compared to 25.0% last year. The EBIT margin before impairment reached 25.0% which is unchanged from last year
- Profit for the period of EUR 53 million compared to EUR 57 million in first half of 2011/12. Diluted earnings per share of EUR 0.39 compared to EUR 0.41 in the first half of 2011/12
- Capital expenditure of EUR 30 million, corresponding to 8.6% of revenue, up from EUR 27 million in the first half of 2011/12
- Research & Development expenditures incurred of EUR 23 million, corresponding to 6.6% of revenue
- Net working capital of EUR 139 million equal to 19.3% of revenue compared to EUR 129 million or 19.4% of revenue at 29 February 2012
- Free cash flow of EUR 6 million compared to EUR 11 million in the first half of 2011/12
- Net interest-bearing debt of EUR 446 million corresponding to 1.8 times EBITDA compared to 1.9 times EBITDA at 29 February 2012
- Q2 2012/13 revenue was EUR 174 million, up 6% compared to Q2 last year. Organic growth was 8% (10% excluding carmine price effect). EBIT margin of 18.7% compared to 25.4% in Q2 last year. EBIT margin before impairment was 23.3%. Free cash flow amounted to EUR 33 million compared to EUR 34 million in Q2 2011/12
- Lars Frederiksen stepped down as CEO of Chr. Hansen Holding A/S on 31 March 2013 and Cees de Jong (51) joined as new CEO on 1 April 2013.
OUTLOOK 2012/13
The outlook for 2012/13 is unchanged compared to the announcement of 16 January 2013. Organic revenue growth, excluding effect on sales prices from change in raw material prices for carmine, is expected to be in the range of 8-10% while organic revenue growth, including the effect from change in raw material prices for carmine, is expected to be in the range of 7-9%. The EBIT margin before special items and impairments is expected to be above last year. Free cash flow before acquisitions and divestments is expected to be at the same level as in 2011/12.
