Chr. Hansen Revises Revenue Outlook

HORSHOLM, DenmarkDue to solid performance in its first quarter, Chr. Hansen raised its expectations for revenue growth in the remainder of the year, from 8-10% to 11-13%.

I am very pleased to report that based on the performance in Q1 and in particular the strong evolution in our color business the organic revenue outlook for the group for 2010/11 has been revised upwards, from 8-10% to 11-13%," says CEO Lars Frederiksen. The financial year 2010/11 has started positively with strong organic growth in all three divisions. Strong demand for DVS® cultures is driving results in Cultures & Enzymes. Health & Nutrition benefited from the continued interest for probiotics, while the pronounced consumer preference for natural colors resulted in organic growth of 46% in Colors & Blends."

In the first quarter, from September 1, 2010, to November 30, 2010, Chr. Hansens revenue totaled EUR 156 million, a 22% increase. Organic grew 16%. The company reports it saw grown in all divisions. The Cultures & Enzymes Division accounted for 60% of group revenue in Q1 2010/11 and revenue growth of 12% compared to the same period last year, corresponding to organic growth of 6%. Growth was driven primarily by yogurt, cheese and wine cultures, notably in the Asia-Pacific region and North America.

Accounting for 12% of group revenue the Health & Nutrition Division experienced organic growth of 13% and revenue growth of 16% in Q1 2010/11. The division had particularly strong growth from the human health area.

Revenue in the Colors & Blends Division grew by 56% in Q1 2010/11, corresponding to organic growth of 46%, primarily driven by the conversion to natural colors. The Colors & Blends Division accounted for 28% of group revenue.