Today, the proposed combination of the legacy companies Novozymes and Chr. Hansen is successfully completed, establishing the company Novonesis. Novonesis is a world-leading biosolutions partner for better business, healthier lives, and a healthier planet. The combined company brings together 10,000 people worldwide and an expertise that spans more than 30 different industries. Novonesis is already assisting companies around the world in meeting both business needs and the needs of the planet.
On December 12, 2022, Novozymes and Chr. Hansen entered into an agreement to create a leading global biosolutions partner through a statutory merger of the two companies. All regulatory approvals and registrations are now in place and the proposed combination is successfully completed following the final registration with the Danish Business Authority today.
The combination of Novozymes and Chr. Hansen will create a leading global biosolutions partner with a broad biological toolbox and a diversified portfolio in attractive markets. The combined group will have annual revenue of approximately EUR 3.7 billion1 with solid profitability and cash generation.
Half of the portfolio will focus on enabling healthier lives and producing better foods. The other half will address reducing chemical use and targeting climate neutral practices.
The combined group will operate a global network of R&D and application centers as well as manufacturing sites and will employ around 10,000 talented and purpose-driven employees who are inspired by the power of biosolutions.
1Combined financials are based on Chr. Hansen’s unaudited Q4 Interim report 2022/23 and Novozymes’ unaudited interim reports for 9M 2023 and Q4 2022. Novozymes figures have been converted from DKK to EUR using a single FX rate of 7.44 for purposes of translation only.
Oterra™ is pleased to announce that it has closed its acquisition of SECNA Natural Ingredients Group S.L.
This is the first acquisition for Oterra, which itself was purchased by private investment firm EQT in March 2021 when Chr. Hansen divested their natural colours business. Oterra, recently announced its intention to pursue a second acquisition, namely Diana Food’s colours business.
Odd Erik Hansen, CEO of Oterra, stated, “This is an exciting time for the industry as demand for natural colors continues to increase. We expect the addition of SECNA to be a meaningful contributor to Oterra’s growth in 2021 and beyond, as we solidify our position as one of the world’s leading suppliers of natural colours. We look forward to offering both our, and SECNA’s, customers a fully integrated go-to-market service soon.”
With this acquisition, Oterra, will further enhance its value offerings to customers worldwide. Notable portfolio additions include SECNA’S anthocyanins from black carrots and grape, as well as caramel, and an organic range. After a period, the SECNA group will be fully incorporated into Oterra.
Approximately 80 SECNA employees, based in Spain and Italy, will join Oterra. This is an exciting time for Oterra, who look forward to having them on the team. “SECNA’s skilled and competent workforce stood out from the start, and I am happy to welcome them to the Oterra family,” said Odd Erik Hansen.
Chr. Hansen Natural Colors A/S, an EQT portfolio company, announces new company name and identity following the move to a standalone company.
Chr. Hansen Natural Colors A/S, the leading provider of natural colors with the widest natural color portfolio in the industry, has announced the company will be known as Oterra™, effective immediately, and will begin the process to operate under the new name.
The new name, Oterra, is inspired by the Latin word for earth. The rebranding reflects the company’s commitment to provide the world with colors from natural sources, and contribute to food that is natural, authentic, safe and sustainable. The company’s ownership and staff have not changed.
CEO, Odd Erik Hansen stated “We have been producing natural colors for more than 145 years now – our new name and brand identity are rooted in this proud heritage and reflect our belief that nature provides the best ingredients. We help our customers meet the increasing global consumer demand for natural products by utilizing the power of nature’s true colors and our unrivalled expertise in colors for food, beverage and pet food.”
The new name is the latest in a string of announcements for the company which was acquired by investment organization EQT in 2021. In April 2021 the company announced its first strategic investment with the acquisition of SECNA Natural Ingredients Group S.L., a move which supports EQT’s strong growth plans for the company.
Cees de Jong, Oterra Board Chairman, commented, “The board is very excited about the relaunch as Oterra – a name and identity that encapsulates our purpose and sustainable value proposition. We see great growth ahead for Oterra and are confident the company will accelerate its development under its new brand.”
Chr. Hansen Natural Colors, an EQT portfolio company, announces its first major transaction, after becoming a standalone company, further bolstering the company’s position as the world leader in natural colours.
Chr. Hansen Natural Colors, a world leading provider of natural colors with the widest portfolio in the industry, has announced plans to continue its strong growth acceleration with the integration of SECNA Natural Ingredients Group S.L into its portfolio.
This is the first add-on investment since being acquired by private equity firm EQT, and it significantly strengthens Chr. Hansen Natural Colors position by giving it access to SECNA Groups’ strong pigment portfolio, which notably includes anthocyanins from black carrots and grape, and caramel.
“We’re committed to continuing to find new ways to harness and share the power of nature’s true colours. This is the first of many exciting milestones for us as a standalone company. We look to enhance our value proposition and strengthen our operational platform together with the team at SECNA at a time when demand for naturally sourced colours is increasing” said Odd Erik Hansen, CEO, Chr. Hansen Natural Colors.
For SECNA Group CEO, Gabriel Muñoz, this partnership is the ideal opportunity to join forces with a like-minded established industry leader. “It’s a win–win situation as Chr. Hansen Natural Colors will add our strong pigment offerings in anthocyanins and caramel to their collection, while providing our valued customers and suppliers with access to their portfolio, technologies and market reach, which is the most extensive in the industry”.
“The combination of our colour platforms puts us in a prime position to better serve the market and our customers, and we’re looking forward to welcoming SECNA Groups’ 100 employees to the Chr. Hansen Natural Colors team” said Klaus Bjerrum, COO, Chr. Hansen Natural Colors.
The SECNA group is a holding of several companies, with a presence in Spain, Italy and Turkey.
Chr. Hansen Holding A/S entered into an agreement to divest its Natural Colors business to the EQT IX Fund for a cash consideration of 800 EUR million on cash and debt free basis. The transaction is expected to close during the spring of 2021, subject to regulatory approvals.
This agreement concludes the strategic review of the Company’s portfolio announced in July 2020, where Chr. Hansen’s Board of Directors and the Executive Board decided to explore strategic options for the Natural Colors business as it does not share the microbial and fermentation technology platforms.
Mauricio Graber, CEO of Chr. Hansen, said: “The divestment of Natural Colors completes the Review part of our recently launched 2025 Strategy. Chr. Hansen can now focus on fulfilling the ambition of becoming a pure-play, microbial and fermentation company with industry leading, profitable growth. I am convinced EQT will be a great owner of the Natural Colors business which has a leading global position in the industry. During the process it has become clear that EQT showed the strongest conviction in the potential of the business, and the highest dedication to the future development of it. I want to thank all the employees of the Natural Colors business for their contribution to Chr. Hansen over many years, and wish them all the best in the future journey as an independent company.”
Mads Ditlevsen, Partner at EQT Partners, and Investment Advisor to EQT IX, commented: “We are immensely proud and humble of having been chosen as the future owner of Natural Colors. It is a high- quality and truly global business with a proud legacy of servicing customers all over the world for more than 100 years. We are highly impressed by the strong ESG profile, the high-quality organization and talented people we have met during this process, as well as the dedicated focus on food safety. Natural Colors fits very well with EQT’s thematic investment criteria and is operating in two of EQT IX’s five prioritized sub- sectors within Industrial Technology. EQT’s ambition is to help the business achieve further growth both organically and through acquisitions.”
Klaus Bjerrum, Executive Vice President of Natural Colors, said: “I am very pleased to announce EQT as the new owner of Chr. Hansen’s Natural Colors business. EQT has acquired our great business (pending closing) to grow it organically and inorganically based on our capabilities and organization, and not least our leading market position. It is my conviction that this marks a new and exciting chapter for us, and I am
excited to embark on this journey with EQT and all our talented employees around the world.”
Financial implications and outlook Chr. Hansen’s long-term financial ambition is unaffected by the divestment. The proceeds from the divestment will reduce the leverage of Chr. Hansen, and will otherwise be utilized according to the capital allocation principles. In the Chr. Hansen Annual Report, which will be released on October 8, the divested business will be presented as discontinued operations. The outlook for organic growth, EBIT before special items and free cash flow before acquisitions and special items for 2020/21, that will also be presented in the annual report, will not include the discontinued operations. Furthermore, the preliminary estimates of impacts of the transaction in 2020/21 will be part of the outlook.
Chr. Hansen Holding A/S today released its 2025 Strategy with the ambition to create a differentiated bioscience company with focus on its microbial and fermentation technology platforms putting Food Cultures & Enzymes and Health & Nutrition at the center of its new strategy. During the strategy period which runs until the end of the financial year 2024/25, Chr. Hansen’s long-term financial ambition is to deliver mid- to high single-digit organic growth, averaged over the period. Furthermore, the Company plans to increase its underlying EBIT margin before special items, before portfolio changes and currency impacts, with efficiency gains and scalability benefits from operations, as well as synergies from recent acquisitions, to be partly reinvested into the business during the strategy period. Average growth in free cash flow before acquisitions and special items is expected to exceed the average absolute EBIT growth.
CEO Mauricio Graber says: “Chr. Hansen has undertaken a tremendous journey since its start as an ingredient supplier to the dairy industry, and I feel very proud to lead a company with such a strong purpose and so many exciting growth prospects. With the launch of our 2025 Strategy we are stepping up our game to unlock the next wave of value creation by advancing Chr. Hansen into a focused global bioscience player that specializes in fermentation technology and microbial solutions. With this focus we will be uniquely positioned and clearly stand out in our industry.”
“At Chr. Hansen, we will continue to pioneer microbial science to improve food and health, for a more sustainable future. Already today, more than 80 % of our revenue contribute to the United Nation’s Sustainable Development Goals, and we are committed to continuing to leverage the Power of Good Bacteria™ which is also reflected in our newly defined purpose: ‘Grow a better world. Naturally.’”
Underlying markets remain attractive
During its strategy process, Chr. Hansen has conducted a thorough review of industry dynamics, consumer trends and growth opportunities in its existing segments. Megatrends such as a growing world population, demographic shifts, increasing health awareness and a strong climate change agenda continue to support Chr. Hansen’s business model. Growth prospects in the Company’s underlying markets remain attractive.
2025 Strategy (‘where to play’)
Under its 2025 Strategy, Chr. Hansen has defined four strategic focus areas that set the framework for its future growth trajectory: REINVEST, LEVERAGE, EXTEND and REVIEW.
REINVEST in core platforms
Chr. Hansen has been the ingredient supplier of choice for the dairy industry for many decades and has also built a strong microbial business for animal feed, dietary supplements and infant formula over the last thirty years. During the strategy period the majority of the absolute growth will come from the core platforms. As such Chr. Hansen will continue to prioritize and invest in Food Cultures & Enzymes, Animal and Human Health. Innovative products, launched across all business areas, are expected in the strategy period, both in existing and new product categories, for example probiotic solutions for foods and pet food.
LEVERAGE the Microbial Platform to grow lighthouses and new areas
Chr. Hansen continues to see many attractive growth opportunities to leverage its technology platform to develop solutions for new applications and end markets. The Company remains committed to further develop its existing lighthouses Bioprotection, Plant Health and Bacthera, and is today launching a new lighthouse in Fermented Plant Bases, where Chr. Hansen sees itself uniquely positioned to gain a meaningful share in this fast-growing market.
“Each of the four lighthouses holds tremendous potential. We are breaking new ground, and I am truly excited about the journey that lies ahead of us when it comes to fighting food waste, shaping the future of food and contributing to sustainable farming and the development of pharmaceuticals based on bacteria,” says CEO Mauricio Graber.
Lighthouses at a glance:
Bioprotection: Special culture range that prevents spoilage, reduces food waste and increases safety of dairy and other foods. The long-term market opportunity is estimated to be around EUR 1 billion with an addressable market of around EUR 200 million in 2025
Fermented plant bases: Fermentation solutions for spoonable and drinkable fermented milk alternatives and fermented beverages. The long-term market opportunity is estimated to be more than EUR 100 million with an addressable market of less than EUR 100 million in 2025
Plant health: Crop protection solutions with a focus on bionematicides, biostimulants and biofungicides. The long-term market opportunity is estimated to be more than EUR 1 billion with an addressable market of around EUR 400 million in 2025
Bacthera: Joint venture with Lonza AG in contract manufacturing for live biotherapeutics. The long-term market opportunity is estimated to be more than EUR 1 billion with an addressable market of EUR 150-200 million in 2025 (only clinical trial market)
EXTEND Microbial Platform through M&A and R&D partnerships
During the strategy period Chr. Hansen intends to further strengthen its technology platform across its competencies, such as cultures and probiotics, dairy enzymes and value-added fermentation through acquisitions and the expansion of the R&D partner network. The recent acquisitions of HSO Health Care and UAS Laboratories are examples of this, and both offer attractive commercial, operational and R&D synergy opportunities.
REVIEW strategic options for non-microbial assets
Chr. Hansen’s Natural Colors division is the global market leader for natural colors. Whilst the division shares the Company’s overall purpose and stand-alone offers an attractive return profile, synergies with the Microbial Platform are limited. As already communicated on July 2, Chr. Hansen has therefore decided to initiate a strategic review of its Natural Colors division. The process is progressing well.
Implementation of 2025 Strategy (‘how to win’)
Chr. Hansen has defined five dimensions along which the Company is going to implement the strategy:
CUSTOMERS: Chr. Hansen will further broaden its customer base and expand its global reach to become a truly global bioscience company. The Company aims to increase its presence in emerging markets. Secondly, Chr. Hansen will continue to invest in application development, sales and marketing resources to positively influence end-market demand and advance its digital agenda to deliver best-in-class service to its customers
INNOVATION: Bringing new innovations with a sustainable impact to market remains a top strategic priority. As such Chr. Hansen will allocate around 75 % of the R&D spending during the strategy period towards new product development. Furthermore, the Company will intensify its efforts to bring products to market faster
OPERATIONS: Chr. Hansen continues to see ample room to realize further operational efficiencies in its production through process innovations and automation/digitization whilst driving scalability benefits through future capacity expansions. Capex spending as a percentage of sales is expected to decline over the period compared to 2018/19
PEOPLE: As Chr. Hansen grows as an organization it is important to safeguard the Company’s unique purpose and performance culture. Furthermore, the Company will continue to invest in talent management and is committed to driving diversity
PURPOSE: As part of its new strategy, Chr. Hansen will accelerate its sustainability ambition and commits to the Science Based Targets initiative to limit global temperature rise to 1.5 degrees by reducing its environmental footprint with investments into renewable energy, recyclable packaging and circular biowaste management.
New financial and non-financial ambitions until 2024/25
Chr. Hansen has an ambitious financial agenda and remains committed to delivering industry-leading profitable growth and a strong cash flow generation. From the base year of 2018/19, Chr. Hansen aims to deliver:
Mid- to high single-digit organic growth, averaged over the period
An increase in EBIT margin before special items, before portfolio changes and currency impacts. The margin improvement is expected to be based on efficiency gains and scalability benefits from operations as well as synergies from recent acquisitions, which will be partly reinvested into the business during the strategy period
An average growth in free cash flow before acquisitions and special items exceeding the average growth in absolute EBIT before acquisitions and special items
The financial ambition is based on constant currencies and does not take future acquisitions or divestments into account, even if future activities are likely. The financial ambition is also based on the current political and economic environment and projections, and any deterioration may impact the ambition negatively (please see next page for details on COVID-19).
Chr. Hansen has set the following sustainability and non-financial ambitions:
Products: More than 80 % of revenue from sustainable products that contribute to the United Nation’s Sustainable Development Goals 2, 3 and 12; 25 million hectares covered with natural solutions (Plant Health and silage inoculants); 200m people consuming Chr. Hansen’s probiotic strains; 2 million tons of yogurt waste reduced
Planet: As part of its commitment to limit global temperature rise to 1.5 degrees, Chr. Hansen aims for 100 % renewable energy, circular management of biowaste and recyclable key packaging materials
People: The Company aims to have introduced 100 % of its new employees to its culture model, have a 1:1 equal ratio between female employees and women in management, have a top 25 % score in its employee engagement survey and reach a lost-time incident frequency of below 1.5
Capital allocation priorities
Chr. Hansen’s capital allocation framework remains unchanged. Organic growth remains the number one priority followed by bolt-on acquisitions which the Company seeks proactively to strengthen its Microbial Platform, particularly in the dynamic and evolving Health & Nutrition markets. Thirdly, Chr. Hansen will maintain the policy of issuing an ordinary dividend of 40-60 % of net income . Finally any excess cash will be distributed as extraordinary dividends or share buy-backs.
Impact of COVID-19 on market outlooks
The global COVID-19 pandemic has changed consumption patterns and consumer choices and has put supply chains globally under pressure. As an essential part of the food supply chain and supplier to the health industry, Chr. Hansen did not see material impacts to its operations or business model from the pandemic. However, during a global recession, potentially lower protein consumption (especially in emerging markets) and delayed or reduced demand from customers may impact Chr. Hansen’s ability to drive sales. That said, the pandemic crisis also provides new opportunities, for example through increasing health awareness and interest in probiotics with immunity concepts.
Chr. Hansen Holding A/S has today appointed Lise Skaarup Mortensen as new Chief Financial Officer (CFO). Lise is an experienced international leader with a strong track-record and a passion for leadership who joins from a position as CFO at Microsoft Germany
Lise Skaarup Mortensen (52) has a strong financial background with many years of experience in large international companies and has for the past eight years been with Microsoft in international senior leadership positions in India and Germany. Prior to joining Microsoft, Lise has held senior level positions within the fields of finance and strategy at IBM, AP Moller-Maersk and BG Bank.
Lise Skaarup Mortensen will start at Chr. Hansen on October 1, 2020, after which there will be a short transition period until current CFO Søren Westh Lonning leaves, expected by the end of October. Lise will join the Executive Board after the transition period is completed.
Lise Skaarup Mortensen is a Danish national, currently living in Munich. She will relocate back to Denmark to take up this position. Lise holds a master’s degree in Business Administration & Economics from the University of Aarhus, Denmark.
The acquisition of HSO Health Care GmbH cements Chr. Hansen’s long-term commitment to its probiotics business, and the fast-growing category for women’s health, where scientifically proven probiotic solutions are becoming increasingly popular among consumers.
Chr. Hansen Holding A/S and HSO Health Care GmbH entered into an agreement, under which Chr. Hansen will acquire HSO Health Care. The acquisition of the Austria-based B2B company specializing in probiotics for women’s health will strengthen and expand Chr. Hansen’s global microbial platform. This acquisition is aligned with the strategy of pursuing bolt-on acquisitions that fit into the microbial platform, as outlined in the Nature’s no. 1 strategy. The transaction will be finalized later this week.
A scientific approach to common urogenital discomforts
Urogenital discomfort is a concern for women all over the world who are increasingly looking for intimate care products based on natural ingredients. This has driven the category for women’s health to be among the fastest-growing in the probiotics market.
Highlights
Women’s health is one of the fastest growing probiotic segments, with an estimated market CAGR of more than 15 % since 2015, which HSO has outperformed substantially
Good fit to Chr. Hansen with easy integration and strong potential synergies
Strengthens and expands Chr. Hansen’s microbial platform by adding HSO’s branded portfolio Astarte™, a global award-winning line of patented probiotic products for women’s health
Clinically documented and using four specific strains, Astarte™ has a powerful selling proposition and a strong brand position and is sold in multiple channels
Strengthens our women’s health offering by combining Astarte™ with Chr. Hansen’s UREX™ products, creating a portfolio that can be leveraged globally and expanded into new adjacencies within women’s health
Expected 2020 revenues of approximately EUR 15 million, with an EBITDA margin above 40 %. Strong double-digit organic growth expected from 2020-2025
Chr. Hansen’s outlook for 2019/20 is unchanged
Financial implications and outlook
The acquisition is fully aligned with Chr. Hansen’s capital allocation principles, and does not impact the ability pay out an ordinary dividend of 40 – 60 % of net profit. The purchase price will be financed from existing available cash and bank facilities, and the acquisition has no impact on the 2019/20 outlook. Under the terms of the agreement the details of the transaction will not be disclosed.
“The world’s most sustainable company 2019” ranks no. 2 on Corporate Knights’ list for 2020
Today, Corporate Knights, a specialized Toronto-based media and investment research firm, published their annual ranking “Global 100 Most Sustainable Corporations in the World” 2020 in Davos, Switzerland. Last year’s no. 1 in the ranking, global bioscience company Chr. Hansen, cements its position at the top by coming out second on the list for 2020.
A catalyst for change
The renewed ranking in the world elite of most sustainable companies comes after a remarkable 2019 for the 145-year-old company. Highlights of the year included the no. 1 position on Corporate Knights’ list, inclusion on Fortune Magazine’s Change the World List of 50 companies that do well by doing good and the Golden Peacock Global Award for Sustainability presented in London as recently as November.
Another milestone in Chr. Hansen’s sustainability journey was reached when the company announced a groundbreaking agreement with Better Energy of switching 100 % to green electricity from two new solar parks, wind energy and bio gas for its Danish operations by April 2020. Through its engagement in establishing the new solar parks, Chr. Hansen is contributing positively to the transition to green energy in Denmark as a whole. While its Danish operations account for almost half of the company’s total electricity consumption, the model is scalable and can be introduced in other countries going forward.
The background for ranking Chr. Hansen the second most sustainable company in the world 2020:
Chr. Hansen improved its total score against Corporate Knights’ indicators. Although this was not enough for a first place this year, the company is still ranked as the number 1 most sustainable food ingredient company.
Clean revenue: Chr. Hansen has been able to account for and document its direct product impact on the UN Global Goals. 82 % of the revenue directly supports the UN Global Goals, and PWC has reviewed the methodology to document this.
The UN Global Goals are used as a framework to link the impact of the corporate strategy to sustainable development, and the performance is measured and reported on an annual basis.
Environmental performance: Chr. Hansen scored high relative to its peers on its environmental performance, specifically related to energy, CO2, water and waste. Continuously reducing its environmental footprint has been a priority during the past year. During 2019 it led to the partnership with Better Energy where Chr. Hansen committed to switching 100 % green electricity from two new solar parks, wind energy and bio gas for its Danish operations by April 2020
Diversity: Chr. Hansen score high on % of female directors, and also get some points from female senior executives and sustainability pay link
About Corporate Knights and the ranking “Global 100” Corporate Knights Inc., the company for clean capitalism, includes the sustainable business magazine Corporate Knights and a research division that produces rankings and financial product ratings based on corporate sustainability performance. The Global 100 Most Sustainable Corporations in the World is an annual project initiated by Corporate Knights. Launched in 2005, the Global 100 is announced annually on the sidelines of the World Economic Forum in Davos.
Despite more challenging growth conditions Chr. Hansen delivers a strong EBIT margin and a healthy cash flow, while also making significant progress on key strategic priorities
CEO Mauricio Graber says: “2018/19 was a solid year for Chr. Hansen, although it was not without its challenges as tougher market conditions especially in emerging markets made it more difficult to grow to the level of our ambition. We ended the year with 7 % organic growth for the group, at the low end of the guidance provided in June. However, we are satisfied that we delivered well on the financial targets for EBIT margin and free cash flow that we set at the beginning of the year, with EBIT margin before special items reaching 29.6 % and 17 % growth in free cash flow before acquisitions and special items. For the full year, Food Cultures & Enzymes delivered solid organic growth of 8 %, while Health & Nutrition delivered 9 % and Natural Colors delivered 3 %. In Q4, organic growth came down as expected for all three business areas, as we continued to see macroeconomic challenges in emerging markets, primarily impacting Food Cultures & Enzymes and Natural Colors.
We made very good progress on our strategic priorities: Plant Health had a very strong year in Latin America, and is set to have another strong year, selling in both Latin America and North America. We’ve reached an important milestone for our Human Microbiome lighthouse with the Bacthera joint venture, and while bioprotection did not have a very strong year, it still delivered double-digit growth, and we are confident in the commercial pipeline and have accelerated the development of the 3rd generation technology.
We have a cautious outlook for 2019/20, given the market challenges we are facing. After a first quarter with flat to low-single digit growth, we expect to improve the momentum in Food Cultures & Enzymes and Health & Nutrition for the rest of the year to end at 4-8 % organic growth for the group, with an EBIT margin on par with 2018/19 and an improved operating cash flow.
Over the next six months, we will conduct our biennial review of the Nature’s no. 1 strategy and will present the results at a Capital Markets Day in April 2020. Given our strong belief in the opportunities inherent in the strategy, fundamental changes from our focus on microbial and natural solutions produced via fermentation should not be expected. Until then, our business focus in 2019/20 will be to improve on our execution of the strategy.”
Global bioscience company Chr. Hansen to expand and strengthen its research & development facilities north of Copenhagen to meet the increasing demand for natural and sustainable products.
Chr. Hansen has entered into a cooperation agreement with PensionDanmark on a significant expansion of its main office campus and research & development facilities in Hoersholm north of Copenhagen, while Catella Corporate Finance A/S has been financial advisor. The project includes the establishment of a modern innovation campus with laboratories for an additional 250 scientists.
The aim is to create future-proof facilities for research & development sustaining Chr. Hansen’s strong position as preferred supplier of natural ingredients and microbial solutions to the global food, health and agricultural industries.
In addition to the labs, a major new application center will be established where Chr. Hansen, together with customers from all over the world, can test and tailor-make new and innovative products in a realistic production environment.
“This is truly an exciting project for Chr. Hansen, who has been growing steadily over the past years” says CFO Soeren Westh Lonning. “With this investment we will ensure room for growth and innovation gearing ourselves for the future, which looks promising for a company that offers natural and sustainable solutions to some of world’s most important challenges such as reducing food waste, feeding a growing world population and reducing the use of chemicals.
A modern, flexible workplace with state-of-the-art labs in inspiring surroundings will help attract the talents we need to stay at the forefront and proceed on the sustainability journey. Moreover, it will contribute to strengthening our long-term position as a leading bioscience company,” he notes.
Financially strong partner with focus on social responsibility
Given the magnitude and strategic importance of the expansion to Chr. Hansen, it is critical to have a strong partner for the execution of the construction project. PensionDanmark, one of the 50 largest pension funds in Europe with currently EUR 31.5bn under management and serving 734,000 members, was found to be the best match.
“At Chr. Hansen we direct our efforts to what we do best, which is developing, producing and selling natural ingredients and microbial solutions. We have a constructive dialogue with PensionDanmark and feel confident about leaving the construction project to them,” states Lonning.
“We are proud that Chr. Hansen, who has been ranked as the world’s most sustainable company, has chosen us as their partner on this project. Over the past decades PensionDanmark has gathered solid experience as professional construction investor and co-developer on many large sustainable construction projects. This experience has given us the knowledge and competencies to execute special building projects together with our clients that meet their every demand,” says CEO Torben Möger Pedersen, PensionDanmark.
“We are a financially strong partner and we have a mutual interest in always keeping agreements on quality, on time and on budget. At the same time, it is important for us to demonstrate social responsibility and put demands on sub-contractors when it comes to ethics and sustainability in all processes, materials and working conditions. In this way we share the same values as Chr. Hansen,” Torben Möger Pedersen stresses.
(Photo: Chr. Hansen)
In the middle of nature
The first ground will be broken next year, and the new buildings are expected to be finished late 2022.
The project focuses on making Chr. Hansen’s campus a modern and future-proof center for innovation, knowledge sharing and customer support, and an inspiring and efficient workplace for the employees, with better opportunity for cross functional teamwork. This is true for the many specialists that work there on a daily basis, as well as all the colleagues from other sites all over the world who visit Hoersholm.
In the architecture and layout of the new campus, it has been a priority to fully exploit the access to daylight and the surrounding green area in close interaction with nature, well in line with the fact that nature is the source of the company’s products.
Chr. Hansen moved to the location in Hoersholm in 1988 after more than 90 years at a downtown Copenhagen address. The company was established in 1874 and has more than 3,700 employees in over 30 countries. Every day more than one billion people consume a product that contains a natural Chr. Hansen ingredient.
Chr. Hansen delivers solid half-year result of 9 % organic growth and maintains overall outlook for the full year.The growth comes from all business areas: Food Cultures & Enzymes 10 %, Health & Nutrition 11 % and Natural Colors 5 %
Solid organic revenue growth of 9 % in the first half of 2018/19: Food Cultures & Enzymes 10 %, Health & Nutrition 11 % and Natural Colors 5 %. EBIT before special items increased by 10 % to EUR 150 million, corresponding to an EBIT margin before special items of 27.0 % up 0.8 %-point compared to last year. In Q2, organic growth was 8 %, and EBIT before special items increased by 11 %. The overall outlook for 2018/19 remains unchanged.
CEO Mauricio Graber says: “We continued the solid momentum, with Food Cultures & Enzymes delivering strong organic growth with an increasing contribution from volume in Q2, which was in line with our expectations. Towards the end of Q2, we launched CHY-MAX® Supreme, a truly innovative enzyme which raises the bar for what cheesemakers can expect from coagulants. Organic growth in Health & Nutrition was solid and with a more balanced growth contribution between Human Health and Animal Health compared to what we saw in Q1, although livestock farming economics in North America remain challenging. Yesterday, we announced a joint-venture with Lonza AG, which marks a quantum leap for Chr. Hansen’s Human Microbiome lighthouse and which will create a global pioneer and partner of choice for production of live biotherapeutic products. In Natural Colors we secured important conversions in North America, but this was to some extent offset by weaker demand from Latin America in particular.”
“Our EBIT margin before special items in the first half of the year increased by 0.8 %-point and was driven by improved margins in all business areas. In FC&E, we achieved a gross margin benefit of more than 1 %-point from the ramp up of the new capacity in our facility in Copenhagen, which more than offsets the increasing investments we are making in the business. We continue to pursue strong and profitable organic growth while also investing significantly for the future.
“The progress in the first half year makes us confident about our overall outlook, which is maintained and in line with our long-term financial ambition.”
Topping the 2019 global index of the 100 most sustainable companies, as announced during the World Economic Forum in Davos, Switzerland
One month short of its official 145th anniversary, global bioscience company Chr. Hansen is ranked the most sustainable company in the world by Corporate Knights, a specialized Toronto-based media and investment research firm.
This was announced during the World Economic Forum in Davos, Switzerland, on January 22, 2019, upon the release of Corporate Knights’ 15th annual Global 100 Most Sustainable Corporations in the World ranking. More than 7,500 companies have been analyzed against global industry peers on a number of quantitative key performance indicators. Chr. Hansen scored 100 % on the ‘clean revenue’ indicator, reflecting that the company’s products have clear environmental and certain social benefits, as stated in Corporate Knights’ definition.
The power of good bacteria
“We are extremely proud and humble to receive this amazing honor. I believe that one of the reasons why Chr. Hansen has been ranked as #1 is because the world is beginning to understand the power of good bacteria and the impact it can have on some of the major challenges the world is facing, such as food waste, antibiotic overuse and the need for a more sustainable agricultural sector to feed a growing world population while preserving our planet for future generations,” says CEO Mauricio Graber.
“Chr. Hansen is dedicated to promoting a wider adoption of natural solutions, and we are truly proud of our products which are consumed by more than 1 billion people every day. Having a global reach like that is indeed a great responsibility as well as an opportunity to make a positive difference for people, animals and plants. We are fortunate to have customers all over the world who are with us on this journey – determined to promote sustainable and natural products to the end-user,” Graber elaborates.
“We have, among other things, been recognized for our efforts to measure our impact on the UN Global Goals; 82 % of our revenue directly supports these goals, and PWC has reviewed our methodology to document this.”
Sustainability – an integral part of the business
Chr. Hansen has been supplying natural ingredients to the food industry since 1874. The understanding and respect for nature’s scarce resources has always been an integral part of the company’s DNA.
Today sustainability remains at the core of Chr. Hansen, reflected by the name of the corporate strategy 2022: ‘Nature’s No. 1 – Sustainably’. The strategy focuses on developing natural solutions for the global food, health and agricultural industries in a sustainable manner. The UN Global Goals are used as a framework to link the impact of the corporate strategy to sustainable development, and the performance is measured and reported on an annual basis.
“Working for a better world is deeply rooted in our product portfolio and organizational culture. As a company this gives us a very strong purpose that is closely linked to sustainability, and which our employees fully identify with. They are proud of working for a meaningful cause and contributing to a higher purpose every day,” underlines Mauricio Graber.
“However, we are far from done. We still have a long way to go on our sustainability journey, but we sincerely hope that we can use this accolade to raise more awareness of the power and potential of good bacteria as part of a sustainable solution to a number of challenges facing our planet,” he concludes.
Chr. Hansen realizes solid organic growth of 10 % in the first three months of the financial year 2018/19, delivering in line with our „Nature’s no. 1 – Sustainably“ growth ambitions.
Chr. Hansen reports solid organic revenue growth of 10 % in the first three months corresponding to 6 % reported growth due to adverse currency impacts: Food Cultures & Enzymes 10 %, Health & Nutrition 17 % and Natural Colors 6 %. EBIT before special items increased by 9 % to EUR 71 million, corresponding to an EBIT margin before special items of 26.3 % which was up 0.9 %-point compared to last year. The overall outlook for 2018/19 remains unchanged.
CEO Mauricio Graber says: “We have had a solid start to the year, with Food Cultures & Enzymes delivering strong organic growth with contributions from volume and EUR pricing, in line with our expectations. Organic growth in Health and Nutrition was also strong, driven by global demand for probiotics for infant formula in Human Health. Animal Health was impacted by timing of orders, but the underlying interest in microbial solutions for animal farming remains strong, and we continue to improve our route-to-market. Plant Health had another excellent quarter in Latin America, although absolute numbers are still modest. We were also pleased to see the momentum in Natural Colors continue in Q1, driven by demand for coloring foodstuff, where we also launched new products for the FRUITMAX® range during Q1.
“Our EBIT margin before special items in Q1 increased by 0.9 %-point and was driven by improved margins in Health & Nutrition and Natural Colors. The EBIT margin in Food Cultures & Enzymes was positively impacted by a strong development in gross margin, and ended on par with last year, as we continued to invest in our growth and innovation priorities. We continue to expect a positive contribution from further scalability benefits, as we ramp up utilization of the new capacity in our facility in Copenhagen.
“We are encouraged by the solid start to the year, and we maintain our overall guidance for the full year. Our pipeline of products to be launched this year, from all three business areas, looks very promising and will support the growth potential of Chr. Hansen.”
Chr. Hansen and FMC Corporation have announced a five-year extension of their collaboration to develop and commercialize natural solutions for the agricultural industry
The collaboration, which has launched several successful natural solutions over the last five years, has enabled both Chr. Hansen and FMC to join resources and expertise to accelerate entry into the rapidly growing biological crop protection market. The newly extended agreement continues to leverage the resources and expertise of both companies, while allowing for more flexibility.
During the last five years, Chr. Hansen and FMC have had an exclusive relationship regarding crop protection. While the mutual development pipeline will continue to be exclusive, both companies will be able to pursue development and commercial relationships with other partners, if desired.
“Chr. Hansen and FMC have enjoyed a successful relationship, including the launch of new products that provide natural alternatives for farmers to significantly boost crop yield,” said Christian Barker, Chr. Hansen executive vice president, Health & Nutrition. “Now, with our continued collaboration confirmed, we look forward to launching our strong pipeline of new products together in the years ahead. Beyond that pipeline, the new agreement provides full flexibility for both parties which will enable Chr. Hansen to further leverage our distinctive microbial capabilities by also collaborating with additional partners.”
Marc Hullebroeck, president, FMC Europe, Middle East and Africa, added:
“We are pleased to extend our relationship for at least another five years as we continue to collaborate on commercializing technologies that have been jointly developed. In addition, FMC will continue its own efforts on discovery, development and commercialization of new innovative technologies at our state-of-the-art laboratory facilities at FMC’s European Innovation Center near Copenhagen, Denmark. Our priority is to focus on differentiated solutions for growers throughout the world.”
Chr. Hansen Holding A/S has entered into an agreement with Klaus Bjerrum to take up the position as Executive Vice President of Natural Colors Division
Klaus Bjerrum is currently employed as Senior Vice President, Operations, at CP Kelco and will join Chr. Hansen in his new role as of 1 August 2018.
Klaus Bjerrum (49) has been with CP Kelco for the past 19 years where he has been in global and regional roles within several functions (Operations, R&D, Business Management and Sales). Since 2015 he has been part of the Executive Leadership Team, reporting to the CEO.
Klaus Bjerrum holds an MSc in Foods Science & Technology from The Royal Danish Veterinary & Agricultural University, and a Graduate Diploma in Business Administration, International Trade, Copenhagen Business School. In addition, Klaus is educated Diploma Master Brewer from the Scandinavian School of Brewing.
As the conversion wave from synthetic to natural colors continues to rise in the US market, Chr. Hansen gears up for the future
Global bioscience company Chr. Hansen has purchased the Banker Wire manufacturing facility in Mukwonago, Wisconsin, adding significantly to its presence in North America, in convenient proximity to its Milwaukee-base. Taking this step is in response to an ever growing interest from US consumers in products made from natural, recognizable and safe ingredients, putting pressure on food and beverage producers to convert to natural colors.
The acquired facility will be renovated to become the new North American headquarters for the company’s Natural Colors Division, housing everything from production, to research and development, application and quality assurance labs, a pilot plant, a dedicated warehouse, as well as sales and marketing and other business support functions.
“This is the largest single investment for Natural Colors in recent years and demonstrates our commitment to the important North American market,” says Jacob Vishof Paulsen, acting Executive Vice President of Natural Colors Division. “Having the whole chain gathered in one place will allow for a fast and agile response to customer needs, supporting Chr. Hansen’s current and future business demands for the next decade – with room to grow.”
High quality products, faster
The expansion will strengthen Chr. Hansen’s position as an industry leader with full supply chain capabilities to deliver natural color solutions to current and future customers. The new state-of-the-art site will create better speed to market, based on more flexibility in production and supply chain and resulting in high quality products, faster.
Chr. Hansen, who has been present on the North American market since 1878, will take over the building next year and initially employ 70-80 people. Meanwhile we will continue to serve our many customers from our base in Milwaukee, Wisconsin.
Bioprotection continues to show impressive momentum
Chr. Hansen reports strong organic revenue growth of 10 % in the first three months of 2017/18: Food Cultures & Enzymes 12 %, Health & Nutrition 10 % and Natural Colors 4 %. EBIT before special items decreased by 1 % to EUR 65 million, corresponding to an EBIT margin before special items of 25.4 %. The overall outlook for 2017/18 is unchanged.
CEO Cees de Jong says: “We have had a solid start to the year, with Food Cultures & Enzymes’ organic growth better than expected. Sales of bioprotective solutions continue to show impressive momentum, and this is still without any significant impact from the second-generation FreshQ® products that we launched at the beginning of this financial year. We have also introduced ProKids®, an innovative product concept for a children’s drinking yogurt containing our LGG® probiotic strain. As expected, organic sales growth in Natural Colors was below our long-term ambition.
“Our EBIT margin before special items in Q1 was lower than last year, mainly due to the sale of a property in Argentina in Q1 2016/17, adverse currency impacts and costs related to starting up our new production capacity in Copenhagen. The new capacity is producing ahead of schedule, and we expect to see improving margins from this toward the end of the financial year.
“We are encouraged by the solid start to the year, and we maintain our overall guidance for the full year. We increase our expectations to organic growth for Food Cultures & Enzymes to be even stronger and above the long term 7 – 8 % growth target that we have for this business. At the same time, we lower our expectations to organic growth in Health & Nutrition for the full year to be below our long term guidance for this business due to the challenging market conditions in North America.”
The Board of Directors of Chr. Hansen Holding A/S has appointed Mauricio Graber as new Chief Executive Officer (CEO) as of 1 June 2018.
Mauricio Graber (54) has been President of the Flavours Division of Givaudan S.A. and a member of Givaudan’s Executive Committee since 2006.
Mauricio Graber holds a BSc in Electronic Engineering from Universidad Autónoma Metropolitana in Mexico, and a Masters in Management from the JL Kellogg Graduate School of Management, Northwestern University, USA. His professional career started in 1989 with The Nutrasweet Company in the USA as Business Development Manager. After two years in the role, he returned to Mexico in 1991 to become Regional Head of North Latin America.
In 1995, he joined the US-based flavour company Tastemaker as Regional President of Latin America. In 1997, Tastemaker was acquired by the industry leader Givaudan, and subsequently Mauricio was appointed Regional President of Latin America of the combined regional business. From his new base in Brazil, he continued in that role until 2006 when he was appointed President of the Flavours division based in Switzerland.
Over the past 10 years Mauricio has led Givaudan Flavours to strengthen its global industry leadership position. He has built a customer centric culture, accelerated commercialization of innovation, invested in developing markets, driven productivity programs, and delivered both organic growth and successful integration of strategic acquisitions. In addition, he has developed internal talents and built a strong organization.
Chr. Hansen’s current CEO, Cees the Jong, will continue as acting CEO until Mauricio Graber takes up his new position on 1 June 2018.
Chr. Hansen’s Chief Executive Officer Cees de Jong has informed the Company that after having led Chr. Hansen as CEO for almost 5 years, he intends to pursue a career as a non-executive director outside Chr. Hansen in due course.
The Company has initiated a process to find his replacement, and until then Cees de Jong will continue as CEO of Chr. Hansen.
Ole Andersen, Chairman of the Company’s Board of Directors, says: “Cees has done a tremendous job for Chr. Hansen and its shareholders, employees and other stakeholders. Together with the Corporate Leadership Team, Cees has steered the Company while delivering in accordance with our financial goals, helped develop an ambitious strategy and been a driving force behind our initiatives to pursue new growth opportunities. Chr. Hansen will be in a much stronger shape when Cees leaves, than when he arrived. We have several new and exciting prospects. I therefore look forward to identifying and appointing a new CEO for Chr. Hansen among the very strong candidates there will naturally be for this attractive position.”
Cees de Jong says: “Chr. Hansen has a unique competence base and strong growth prospects, and it is, and has been, a privilege to be the CEO since 2013. The Company and its employees have been creating excellent results and are continuing to deliver on the “Nature’s No. 1” strategy, turning Chr. Hansen into a true global microbial solutions company. While I am choosing now to pursue a different career, I will continue fully dedicated in my role as CEO for Chr. Hansen until my replacement has been found”.
