Sales increased by 13% to DKK 1,205 million
Income from primary operations before amortization of goodwill
(EBITA) totalled DKK 146 million against DKK 174 million in
1999/00. The decline was primarily attributable to seasonal
fluctuations compared to last year and a disappointing sales
development in North America
Income before tax totalled DKK 89 million against DKK 133
million in 1999/00
Chr. Hansen Holding A/S' net income amounted to DKK 48
million compared to DKK 70 million in 1999/00
The Allergy Sector has supplied the first reagents for a new,
sophisticated instrument for specific diagnosis of allergy under a
collaborative agreement with Bayer Diagnostics
The slowdown in the US economy and disappointing global sales
in December have increased the uncertainty as to whether the
estimate for the whole year can be fulfilled

Ingredients sectors

Sales increased by DKK 92 million to DKK 922 million. The 11% increase on the first quarter of 1999/00 was primarily attributable to positive exchange differences of 12%.Net of a 2% effect of acquisitions, organic growth came to minus 3% against plus 10% in the first quarter of 1999/00. Capacity costs increased by 17%, of which exchange differ-ences accounted for 10%.

Sales in North America, Europe and the rest of the world (ROW) showed very different trends.In Europe and ROW, the rate of organic sales growth was 6%, which was in line with our forecast. Sales in the North American market were very disappointing and fell equivalent to an or-ganic growth rate of minus 13% against an expected increase of 5% on an annualized

The comparison is rendered difficult by the fact that sales in the first quarter of 1999/00 were unusually high owing to stockpiling in connection with the turn of the millennium. However, the absence of growth in US food consumption combined with the initial signs of recession had an impact on sales as did intensified price competition. We are currently trying to determine whether this trend is of a temporary or a more lasting nature. The consequences on income for the full year cannot be assessed at the moment, but we expect to announce this in the six month report.

Within the Bio Ingredients Sector, dairy cultures and rennet enzymes showed good growth in volumes sold. Price competition within rennet enzymes remains intensive. In the Food Ingredients Sector, the rationalization of production facilities within natural colours is progressing according to plan. The plant at Waterford, Ireland, has been closed and production transferred to Avedøre, Denmark, where the world's largest plant for natural colours is being extended. Following last year's acquisition of Italiana Ingredienti, sales of flavour solutions and functional blends for southern Europe are now increasingsignificantly.

The BSE situation in Europe is expected to have a significant impact on consumption of beef sausages. Sales of ingredients for this purpose are expected to be adversely affected by this situation.

In order to enhance sales growth in the Far East, a new joint sales centre is being estab-lished in Kuala Lumpur, Malaysia.