Nutrition and health drive success for Chr Hansen

By Nathan Gray

- Last updated on GMT

Nutrition and health drive success for Chr Hansen

Related tags Chr hansen Milk

Strong growth in nutrition and health has helped Chr Hansen to strong full-year results that match the expectations for the year, says the firm.

The Denmark-based natural ingredients supplier reported 8% organic growth for the full year, with a total revenue of €756 million an EBIT margin before special items of 27.1%. The ‘solid’ result comes after strong results in the firm’s Cultures & Enzymes and Health & Nutrition business units, which saw 8% and 15% growth respectively.

Total operating profit amounted to €195 million for the year, compared to €193 million in the previous year, with regional growth strongest in Asia, where the firm saw a 14% growth in revenues - while the largest region by revenue, EMEA, saw 8% revenue growth.

The company’s largest business unit, Cultures & Enzymes, generated €464m in revenue, while its Natural Colours division brought in €158m (a 2% growth), and Health & Nutrition saw revenue of €134m.

Writing in their letter to shareholders, Chr Hansen president and CEO Cees de Jong, and chairman of the board Ole Andersen said:“The markets for strategic dairy ingredients for cheese and fermented milk remained strong despite continued headwinds for probiotics. Growth was driven by fundamental market growth, conversion, innovation and price increases. Cultures for meat and wine also showed strong growth.”

They added that human and animal health in the Health & Nutrition Division both delivered strong growth, driven by continued penetration of bacterial solutions for both humans and animals, whilst the 2% growth delivered by its Natural Colours division “is below our ambition.”

“The division was negatively impacted by the loss of a significant customer in South America (6%-points), a slower conversion rate to natural colours in the US than expected, and a loss of momentum in China,”​ they confirmed.

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