Chr. Hansen (Buy, TP: DKK720.00) - FC&E miss on margin expansion
Q3 organic sales growth of c9% was in line with our estimate of 9.2% and consensus of 8.8%, with the FC&E division delivering c11% organic growth (our estimate 10.4%, consensus 10.2%). The EBIT margin of 29.7% was weaker than we expected (our estimate 30.1%, consensus 29.8%), due to unfavourable product mix in the FC&E division and the benefits from the capacity expansion just starting to materialise. The 2017/18 guidance is unchanged. We expect the shares to trade down c3% due to FC&E.Chr. Hansen is a biosciences group based in Denmark. Co. develops and supplies natural ingredient solutions for the food, pharmaceutical, nutritional, and agricultural industries worldwide. Co. operates in three divisions: Cultures and Enzymes (develops, produces, and sells cultures, enzymes, and probiotics for the food and dairy industries); Health and Nutrition (develops products for the dietary supplement, over-the-counter pharmaceutical, infant formula, and animal feed industries); and Natural Colors (develops natural color solutions to the food industry, primarily for the beverage, dairy, confectionery, fruit preparation and ice cream, as well as functional blends for processed meats).
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.