Food ingredients group Chr. Hansen today (6 July) increased its forecast for annual sales as a result of “continued momentum” in its natural colours division.
It said that revenue is expected to grow organically by 14-15% for the full year, up on the previously forecast 12-14%.
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The announcement is the company’s second sales upgrade this year, with after it lifted an inital forecast of 11-13% in April.
Chr. Hansen, meanwhile, posted a third-quarter profit of EUR30.9m (US$44.2m) against a EUR4.6m loss in the same period of the previous year.
For the quarter ended 31 May, revenue was up 11% to reach EUR169.8m. The company said that organic growth was 11%, thanks in part to success in increasing prices and also the effect of pricing in euros in certain countries.
“Organic growth for the group remained strong in Q3. Driven by the continued move from synthetic to natural colors, the natural colours division once again delivered a strong performance, while organic growth in the cultures and enzymes division was more modest,” said CEO Lars Frederiksen.
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By GlobalDataChr. Hansen added that as a result of “scalability effects” in all divisions and a continued focus on efficiency, operating profit margin before special items is still expected to be at or above 25%. The company made the forecast despite “increased pressure from the changed business mix caused by the strong growth in the natural colours division”.
