Chr. Hansen: shares drop as outlook disappoints

(CercleFinance.com) - Danish food ingredients maker Chr.
Hansen gave a cautious outlook for its financial year 2020/2021 on Thursday, sending its shares 4% lower on the Copenhagen Stock Exchange.

The company - which makes probiotics and enzymes for meat and cheese production - said organic growth reached 5% in the financial year 2019/2020, within the guidance it provided at the beginning of the year.

Chr. Hansen said its organic growth accelerated in the fourth quarter, driven by its health and nutrition unit, which delivered an impressive 18% growth.

Before special items, earnings before interest and tax (EBIT) increased by 4% to 356 million euros in the past financial year.

Yet, Chr. Hansen gave a rather cautious outlook for 2020/21, citing the uncertainties around the Covid-19 pandemic.

The company said it expects an organic growth rate of 5-8%, in line with its long-term ambition, which did not seem to convince investors as the shares dropped over 4% Thursday morning.

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