DENMARK: Chr. Hansen cuts FY sales, margin forecasts
Lower carmine price has hit Chr. Hansen forecasts
Food ingredients group Chr. Hansen today (3 July) lowered its forecasts for annual sales and underlying EBIT margin to reflect lower prices of the pigment carmine.
Chr. Hansen, which posted results for the first nine months of its financial year today, said it now expects its annual sales to increase 6-7% on an organic basis, down from a previous forecast of a 7-9% rise.
The Denmark-based group also forecast its annual EBIT margin before special items and impairments to be "around 27%". It had expected the margin to be above last year's level of 27.2%.
The forecasts helped send Chr. Hansen's shares down this morning. At 11:55 CET, Chr. Hansen's shares had dropped 4.43% to DKK191.80.
Profits for the nine months to the end of May fell on the back of investment in areas like R&D and impairment costs. Net profit decreased 4% to EUR88.3m (US$114.5m), with operating profit down 1.3% at EUR133m. Revenue increased 6% to EUR544.5m, although the lower carmine price hit sales from its colours division.
Meanwhile, Chr. Hansen announced plans to reorganise its business from four regional divisions to three - EMEA, Americas and Asia Pacific.
"We strengthen our customer-centric approach and move regional commercial decision making and corporate leadership closer," CEO Cees de Jong said.
A spokesperson told just-food the revamp would have no impact on jobs.
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