Chr. Hansen: first-half profit misses expectations
(CercleFinance.com) - Danish food ingredients group Chr.
Hansen has missed its forecasts, posting a 10% rise in first-half operating result, while maintaining its overall outlook for 2018/19.
The company's EBIT before special items increased by 10% to 150 million euros in the first half of its financial year, representing a margin of 27%, up 0.8 point compared to last year.
However, the consensus was expecting 13%.
Chr. Hansen reported "solid" organic revenue growth of 9% in H1 2018/19, with food cultures and enzymes up 10%, health and nutrition up 11% and natural colors 5%.
Beyond the EBIT miss, analysts at UBS deemed the 6% organic volume growth in cultures and enzymes division "more concerning" - which represents 70% of EBIT - in the second quarter and the clear further slowdown in bioprotection.
The group is maintaining its outlook for 2018/19, with organic revenue growth still expected between 9% and 11%.
The Copenhagen-listed shares are currently down 3.8% following these announcements.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
Hansen has missed its forecasts, posting a 10% rise in first-half operating result, while maintaining its overall outlook for 2018/19.
The company's EBIT before special items increased by 10% to 150 million euros in the first half of its financial year, representing a margin of 27%, up 0.8 point compared to last year.
However, the consensus was expecting 13%.
Chr. Hansen reported "solid" organic revenue growth of 9% in H1 2018/19, with food cultures and enzymes up 10%, health and nutrition up 11% and natural colors 5%.
Beyond the EBIT miss, analysts at UBS deemed the 6% organic volume growth in cultures and enzymes division "more concerning" - which represents 70% of EBIT - in the second quarter and the clear further slowdown in bioprotection.
The group is maintaining its outlook for 2018/19, with organic revenue growth still expected between 9% and 11%.
The Copenhagen-listed shares are currently down 3.8% following these announcements.
Copyright (c) 2019 CercleFinance.com. All rights reserved.