Solid results in an uncertain macroeconomic environment
Statement by CEO Mauricio Graber: “The execution of our strategy to differentiate as a focused microbial and fermentation technology company continued to deliver solid results with 9% organic growth for the third quarter 2021/22, equal to 13% growth in EUR terms. Our inflation-driven pricing measures started to contribute positively during Q3, while volume growth slowed down as expected following the strong growth in the first half of the year. Based on the performance of the quarter, we narrow our organic revenue growth target for 2021/22 to 8-10%. The delayed impact from pricing combined with the continued inflationary pressure and actions to protect our supply chain had a negative impact on our EBIT margin b.s.i. However, at 26.3% for the first nine months we remain on course to deliver within our guidance.”
Q3 2021/22 highlights
- Revenue amounted to EUR 318 million, up 13% from EUR 281 million in Q3 2020/21. Year-to-date revenue amounted to 890 million, up 14% from last year.
- Organic growth was 9% in Q3 2021/22 mainly driven by volume growth. The Lighthouses (Bioprotection, Fermented Plant Bases, Plant Health and HMO) delivered 29% organic growth combined in Q3, while the remaining core businesses delivered 7% organic growth. Year-to-date Group organic growth was 11%.
Food Cultures & Enzymes organic growth was 6% mainly driven by volume, but with an increasing impact from pricing. Year-to-date organic growth was 7%.
Health & Nutrition organic growth was 13% driven by volume. Year-to-date organic growth was 17%.
- EBIT b.s.i. amounted to EUR 85 million, up 3% from EUR 82 million in Q3 2020/21. The increase was driven by the strong sales performance in Health & Nutrition, while EBIT b.s.i. in Food Cultures & Enzymes decreased mainly due to a negative impact from higher input costs, increased cost levels to mitigate challenges in the supply chain, donation of an amount equal to the profit from Chr. Hansen LLC, Russia, and non-recurring costs related to an organizational change. Year-to-date EBIT b.s.i. amounted to EUR 234 million, up 10% from last year.
- The EBIT margin b.s.i. was 26.7%, down from 29.3% in Q3 2020/21. The lower margin was due to higher input costs, increased cost levels to mitigate challenges in the supply chain, a general ramp-up of activities, the donation of an amount equal to the profit from Chr. Hansen LLC, Russia and non-recurring costs related to an organizational change. This was partly offset by production efficiencies, a positive contribution from currencies, and pricing initiatives. Year-to-date EBIT margin b.s.i. was 26.3%, compared to 27.3% last year.
- Free cash flow b.a.s.i. amounted to EUR 116 million year-to-date, down from EUR 120 million last year, as the cash flow from operating activities b.a.s.i. was impacted by higher taxes paid.
Outlook
As a result of the performance in the first nine months we narrow the 2021/22 outlook range for organic revenue growth while maintaining the outlook for EBIT margin b.s.i. and free cash flow b.s.i. relative to the guidance provided on April 6, 2022.
| July 7, 2022 | April 6, 2022 | |
Organic growth is expected in the range of |
8-10% | 7-11% |
| EBIT margin before special items is expected to be | 26-27% | 26-27% |
| Free cash flow before special items is expected to be around | EURm 140-170 | EURm 140-170 |
A Chr. Hansen é uma empresa de biociência global e diferenciada, que desenvolve soluções com ingredientes naturais para as indústrias alimentícia, nutricional, farmacêutica e agrícola. Na Chr. Hansen, estamos em uma posição privilegiada para impulsionar mudanças positivas por meio de nossas soluções microbianas. Há quase 150 anos, nós trabalhamos para possibilitar uma agricultura sustentável, uma melhor alimentação e uma vida mais saudável para mais pessoas em todo o mundo. Nossas plataformas de tecnologia microbiana e de fermentação, que incluem nossa ampla e relevante coleção de cerca de 50 mil cepas microbianas, têm um potencial revolucionário. Atendendo às necessidades dos clientes e às tendências globais, nós continuamos a desbloquear o poder das bactérias boas para responder aos desafios globais, como o desperdício de alimentos, a saúde global e o uso excessivo de pesticidas e antibióticos. Como a empresa de biotecnologia mais sustentável do mundo, nós tocamos a vida de mais de 1 bilhão de pessoas todos os dias. Impulsionados por nosso legado de inovação e curiosidade pela ciência pioneira, nosso objetivo “To grow a better world. Naturally.” está no centro de tudo que fazemos.