Natural ingredients to food producer Chr. Hansen (OMX: CHR) announced its Q1 2011/12 earnings this morning. The year has started positively with 13% organic revenue growth and climbing EBIT margin up to around 24.5%. The company says it is seeing solid improvement across all regions and divisions.
First quarter revenue was 168 million and EBIT stood at 41 million. Net profit for the period is 26 million Euros compares to 23 million a year ago. The company has continued to invest heavily in R&D and was free cash flow negative for the period. Operating cash flow was also negative on seasonal factors.
The company still expects 7-10% organic growth and over 26% EBIT margin excluding special items for the fiscal year. Free cash flow before acquisitions and divestments is expected to be above last years’ level of 89 million. The level of clinical documentation on health claims on functional food and food supplements has increased in Europe and Chr. Hansen is building up clinical documentation. The outlook is sensitive to the raw material price of carmine as well as global economic outlook.
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