Chr. Hansen: outlook remains cautious

(CercleFinance.com) - Chr.
Hansen's organic sales rose 10% in its fiscal first quarter, but the Danish food ingredients maker said it remains cautious about the rest of the financial year.

Hansen, which makes natural ingredients for the food, nutritional, pharmaceutical and agricultural industries, said the 10% organic growth in the past quarter was equally split between volume/mix and price effects.

Sales were mainly driven by its health and nutrition business, which delivered 15% growth, while its food cultures and enzymes unit delivered 8% growth.

Underlying EBIT margin, however, fell to 28.5%, compared to 29% in the first quarter of financial year 2019/20, the company added.

Integration of probiotic acquisitions is well on track, Chr. Hansen noted, but temporary capacity constraints in human milk oligosaccharides will phase part of revenues and capex expected during the current financial year to 2021/2022, it said.

Outlook for 2020/21 is unchanged, with the company targeting organic revenue growth of 5%-8% and an EBIT margin before special items of 27-28%.

Investors were not impressed. In late morning trading, Chr. Hansen shares were trading down 1.8%.

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