Chr. Hansen Holding A/S

Chr. Hansen reported Q4 organic revenue growth of 16% and FY2022/23 organic growth of 11%. Q4 EBIT before special items was EUR99 million, up 8% from EUR91 million, and the EBIT margin before special items was 28.0% versus 27.9% last year. Full-year EBIT before special items was EUR358 million, up 10% year over year, with a 26.9% EBIT margin versus 26.8% last year. Free cash flow before acquisitions and special items was EUR69 million in Q4 and EUR202 million for the year, up from EUR172 million. For calendar 2023, the company expects organic growth of 10% to 12%, a 26% to 27% EBIT margin before special items, and free cash flow of EUR190 million to EUR230 million; revenue impact from FX is expected to be around negative 6%.

Mauricio Graber framed the quarter as proof of Chr. Hansen’s innovation-driven model, saying growth came from customer collaboration, productivity gains, and new product launches. He highlighted live probiotics in ambient yogurt in China, a new gut-brain probiotic in Human Health, and strong performance from both the Core business and the Lighthouses. His tone was confident but measured, emphasizing resilience in a difficult market and noting the company remains focused on execution as the Novozymes merger approaches.

Lise Mortensen said Q4 EBIT before special items rose to EUR99 million from EUR91 million, with the 28.0% margin helped by volume growth, pricing, and stable operating expenses, partly offset by higher input costs and FX. She noted full-year free cash flow before acquisitions and special items of EUR202 million, up 17% from EUR172 million, driven by higher operating profit and lower taxes, partly offset by working capital outflows and higher trade receivables from timing of orders. On the outlook, she said the calendar 2023 EBIT margin guidance stays at 26% to 27%, while organic growth is expected at 10% to 12% and free cash flow at EUR190 million to EUR230 million, with the lower cash outlook mainly tied to CapEx timing.

Analysts focused on whether Food Cultures & Enzymes was really outgrowing the market, and management said Chr. Hansen is benefiting from focused microbial platforms, customer innovation, and applications such as live probiotics in China. Questions also centered on Health & Nutrition strength, where management said performance reflected HMO growth, solid regional demand, and some order timing, though North America dietary supplements remain challenged. Other notable topics were HMO commercialization timing, insourcing plans, and the impact of the Danone partnership; management said meaningful HMO revenue from China likely would not come until the second half of 2024 or 2025, and that insourcing remains under review as the market develops.