Chr. Hansen Raises Revenue Target After Profit Beats Estimatesby
Company aiming for sales growth of as much as 12% this year.
Health & Nutrition division growth seen faster in second half
Chr Hansen Holding A/S, the Danish supplier of enzymes and bacterial cultures for baking and cheese making, raised its revenue target for this year after reporting better-than-estimated profit in the first half.
Sales are expected to increase by 10 percent to 12 percent, excluding any acquisitions, up from an earlier range of 9 percent to 11 percent, the Hoersholm, Denmark-based company said in a statement Thursday. Profitability will exceed the 27.1 percent margin reported in the last financial year.
Cees de Jong, who took over as chief executive three years ago, is fine-tuning Chr Hansen’s corporate structure and cutting costs to maintain profit margins. The company announced today it will pool resources for research, production and information technology for both the Food Cultures & Enzymes and Health & Nutrition divisions.
“Results in the first half were encouraging,” de Jong said in the statement. “The modest growth in Health & Nutrition was anticipated and we expect to see higher growth for the division in the second half of the year.”
Earnings before interest and taxes excluding one-time items jumped 22 percent in the fiscal second quarter to 63.9 million euros ($73 million). The average of analysts surveyed by Bloomberg was for 59.7 million euros. Revenue rose 10 percent to 228.9 million euros, versus an estimated 227.1 million euros.