Chr. Hansen delivers 9% organic growth for 2021/22

Chr. Hansen delivers 9% organic growth for 2021/22 despite volatile times

Chr. Hansen is a global, differentiated bioscience company that develops natural ingredient solutions for the food, nutritional, pharmaceutical and agricultural industries. Adapting to a changing business environment, outlook for the new financial year is 7-10% organic growth.

2021/22 highlights

Revenue amounted to EUR 1,218 million, up 13% from EUR 1,077 million in 2020/21. Organic growth was 9% in 2021/22, mainly driven by volume growth. The Lighthouses (Bioprotection, Fermented Plant Bases, Plant Health and HMO) delivered 14% organic growth combined, while the remaining core businesses delivered 9% organic growth. Food Cultures & Enzymes organic growth was 7% and mainly driven by volume, but with a positive impact from pricing. Health & Nutrition organic growth was 14%, driven by volume.

EBIT before special items (b.s.i.) amounted to EUR 326 million, up 9% from EUR 298 million in 2020/21, while the EBIT margin b.s.i. was 26.8%, down from 27.7% in 2020/21. The decrease was mainly driven by a negative impact from higher input costs and increased cost levels to mitigate challenges in the supply chain, which was partly offset by the strong sales performance, pricing initiatives and efficiency improvements.

Free cash flow b.a.s.i. amounted to EUR 172 million, down from EUR 196 million last year, as the cash flow from operating activities b.a.s.i. was impacted by higher taxes paid.

“We have delivered a solid financial performance despite a volatile macroeconomic and geopolitical environment. Organic growth reached 9%, EBIT margin b.s.i. 26.8%, and the free cash flow b.a.s.i. ended at EUR 172 million in line with our latest guidance. Looking into 2022/23 we will continue to adapt to a changing business environment for both us and our customers and aim to deliver solid organic revenue and EBIT growth in 2022/23 as we progress on our strategic ambition to differentiate as a bioscience company focused on microbial and fermentation technology platforms.” says, Mauricio Graber, CEO, Chr. Hansen.

Outlook 2022/23

Organic revenue growth is expected to be in the range of 7-10%. Revenue is expected to be positively impacted by approx. 5% from exchange rates.

EBIT b.s.i. is expected to grow faster than revenue, and EBIT margin before special items is expected to be in the range of 27.0%-28.0%. Free cash flow before special items is expected to be in the range of EUR 190-230 million.

The outlook for 2022/23 is based on actual rates until October 11, 2022, and for the remainder of the year assuming constant exchange rates at the current level of EUR/USD rate of 0.97.