Danish ingredients company Chr. Hansen said it experienced “solid” first-quarter sales growth boosted by its cultures and enzymes division.
Sales in local currencies increased by 12% in the quarter to reach EUR128m (US$181m).
Better product mix and improved margins resulted in a 19% growth in EBITDA to EUR40m. EBIT jumped 30% to reach EUR28m, despite the impact of foreign exchange.
”We have had a strong first quarter and are well prepared to capture future growth not least due to our EUR55m investment in the world’s largest culture plant and our continued R&D spending. It is satisfactory to see that despite adverse exchange rates and challenging market conditions, we experience both solid top- and bottom-line growth, and we look forward to yet another robust year,” said CEO Lars Frederiksen.
Sales growth was “strong” in all three of the group’s divisions, Hansen said.
The firm’s largest business division, cultures and enzymes, showed growth in local currencies of 10%.
Sales in the firm’s health and nutrition division increased 25% in local currencies, while sales from the colour division grew 12%, also in local currencies.
For the full fiscal year 2009/10, Hansen said sales growth is expected to continue “in line with previous years”. Profitability is expected to “grow faster than sales”.
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