Chr. Hansen: cuts unit expectations; shares drop

(CercleFinance.com) - Danish food ingredients maker Chr.
Hansen on Tuesday lowered its expectations for its natural colours division, which has sent the shares down almost 4%.

The bioscience company, which makes cultures for the health industry and enzymes for the food and beverage industry, posted organic sales growth of 9% for the first half of 2017/18.

EBIT before extraordinary items increased slightly to 135.9 million euros.

However, Chr. Hansen has cut its expectations for organic growth in natural colours for the full year, now expecting growth to fall short of its long-term target of around 10%, due to weak sales development in the first half.

Analysts said the momentum in profitability and growth in the group's two largest divisions (food cultures & enzymes and health & nutrition) was still "encouraging."

The shares are currently down 3.6% at 517 Danish kronor in Copenhagen.

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