Chr. Hansen Holding A/S www.chr-hansen.com Page 1/27
Strong performance for the quarter despite a challenging environment
Statement by CEO Mauricio Graber: “Supported by a strong Q4 performance, Chr. Hansen delivered a solid result for the first
twelve months of the extended financial year 2022/23 at the upper end of our guidance with 11% organic revenue growth and an
EBIT margin b.s.i. of 26.9%. Throughout the year, we have demonstrated the attractiveness of the markets we serve and the
resilience of our business model, supported by a robust and agile organization adapting to changing customer requirements in a
challenging environment.
Together with Novozymes, we continue the regulatory approval process in relation to the proposed merger with closing expected
in the fourth quarter of the calendar year 2023 or the first quarter of the calendar year 2024.”
Q4 2022/23 highlights
• Revenue amounted to EUR 352 million, up 7% from EUR 328 million in Q4 2021/22. Year-to-date (September 1,
2022 – August 31, 2023) revenue amounted to EUR 1,334 million, up 10% from the same period in 2021/22.
• Organic growth was 16%, equally supported by both business areas. The Lighthouses delivered 41% organic growth
combined in Q4, mainly driven by HMO, while the core businesses delivered 14% organic growth. Year-to-date
Group organic growth was 11%. The Lighthouses delivered 24% organic growth, while the core businesses delivered
10% organic growth.
• EBIT b.s.i. amounted to EUR 99 million, up 8% from EUR 91 million in Q4 2021/22. The increase was driven by
volume growth, a positive contribution from pricing initiatives, and stable operating expenses, which was partly
offset by the negative impact of higher input costs and exchange rates.
• The EBIT margin b.s.i. was 28.0%, compared to 27.9% in Q4 2021/22, as the strong sales development including the
impact from pricing initiatives were offset by the negative impact of higher input costs and exchange rates.
• Free cash flow b.a.s.i. amounted to EUR 202 million for the year to date, up 17% from EUR 172 million in the same
period last year, driven by the improvement in operating profit and lower taxes paid, which was partly offset by a
negative change in working capital.
Interim dividend for the period September 1, 2022 – August 31, 2023
In connection with the merger agreement, Novozymes and Chr. Hansen have agreed on certain specific provisions in
respect of distributions to their shareholders until completion of the proposed merger. Consistent with the merger
agreement with Novozymes, the Board of Directors has decided to declare an interim dividend of DKK 7.72 or EUR 1.04
per share. The total dividend of EUR 137 million is equivalent to 55% of the adjusted profit for the period September 1,
2022 to August 31, 2023, and will be paid on October 17, 2023 (ex-dividend date of October 13, 2023).
Follow-up on 12-month outlook, September 1, 2022 – August 31, 2023
Actuals 2023 Outlook July 6, 2023
• Organic revenue growth 11% 9-11%
• EBIT margin b.s.i. 26.9% 26-27%
• Free cash flow b.a.s.i. EURm 202 EURm 200-230
Outlook, January 1, 2023 – December 31, 2023
In light of the performance for the first eight months of 2023, the outlook is adjusted for organic revenue growth and free
cash flow b.a.s.i., while maintained for EBIT margin b.s.i. Organic growth for the remaining four months of 2023 is
expected to be driven primarily by price growth including a positive impact from EUR-based pricing.
Outlook October 12, 2023 Outlook July 6, 2023
• Organic revenue growth 10-12% 9-12%
• EBIT margin b.s.i. 26-27% 26-27%
• Free cash flow b.a.s.i. EURm 190-230 EURm 200-250
The outlook for the calendar year 2023 is based on actual exchange rates until October 11, 2023, and for the remainder of the calendar year 2023
assuming constant exchange rates at the current level of EUR/USD rate of 1.06, compared to 1.09 at the time of the most recent outlook, provided
on July 6, 2023. For further details on the outlook for the January 1, 2023 – December 31, 2023, please refer to page 9.
Inerimepor
Sepember
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Chr. Hansen Holding A/S ,
Chr. Hansen Holding A/S www.chr-hansen.com Page 2/27
Interim Report September 1, 2022– August 31, 2023
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Chr. Hansen Holding A/S www.chr-hansen.com Page 3/27
Novozymes and Chr. Hansen to combine and create a leading global biosolutions partner
On December 12, 2022, Chr. Hansen Holding A/S (Chr. Hansen) and Novozymes A/S (Novozymes) announced that the
two companies had entered into an agreement to create a leading global biosolutions partner through a statutory merger.
On March 30, the extraordinary general meetings of Chr. Hansen and Novozymes both approved the proposed
combination with a significant majority. In addition, the shareholders of Chr. Hansen also approved the change of financial
year to follow the calendar year, which was a condition for the completion of the combination.
Since March 2023, the proposed merger has been cleared in the US, China, France (foreign direct investment), Italy
(foreign direct investment), South Africa, Brazil and Turkey.
On October 10, Novozymes announced the Executive Leadership Team and organizational structure for the future
combined company of Novozymes and Chr. Hansen.
The completion of the combination remains subject to the satisfaction of an additional number of conditions set out in the
merger plan, including certain additional regulatory approvals. The completion of the combination is expected to occur in
the fourth quarter of the calendar year 2023 or the first quarter of the calendar year 2024.
2025 Strategy
Chr. Hansen continues to execute on its 2025 Strategy, which is based on three pillars:
REINVEST in the core platforms Food Cultures & Enzymes and Health & Nutrition.
• In Q4, Chr. Hansen continued successful customer collaborations to drive productivity and accelerate innovation in
dairy and plant-based products, including introduction of live probiotics in ambient category.
• In Q4, a new probiotic strain, CLEPIUS™, L. plantarum, was introduced in the gut-brain area in Human Health, with
publication of its first clinical study.
LEVERAGE the technology platform to develop solutions for new applications and end-markets.
• In September 2023, Chr. Hansen released a new review of 26 clinical studies on HMOs (Human Milk
Oligosaccharides), reporting beneficial effects of HMO in gut health and immune system.
• In September 2023, Chr. Hansen received approval from the Chinese authorities with regards to the technology to
produce each of three HMOs (2’-FL, LNT and 3-FL). The approval enables Chr. Hansen to apply for the final approval
of the three HMOs with Chinese authorities.
EXTEND the technology platform through acquisitions and the expansion of the R&D partner network.
• In September 2023, a new Innovation Campus in Hoersholm, Denmark, was inaugurated.
Long-term financial ambitions through 2024/25 (based on unchanged assumptions compared to October 12, 2022)
Chr. Hansen remains committed to delivering industry-leading profitable growth and strong cash flows with the focus on
cost discipline and capital efficiency.
• Mid-to-high single-digit organic revenue growth, averaged over the period.
• An increase of the EBIT margin before special items over the period to more than 30% driven by efficiency gains,
scalability benefits and acquisition synergies that will be partly reinvested in the business.
• Average growth in free cash flow before special items exceeding the average growth in EBIT before special items.
Sensitivity to the long-term financial ambitions
The geopolitical and macroeconomic environment has changed significantly, particularly impacted by the inflationary cost
pressure, disruption of global supply chains, and effects related to Russia’s invasion of Ukraine. As a consequence, Chr.
Hansen’s ability to meet the long-term financial ambitions through 2025, as initially announced in 2020, is highly
sensitive to the following core assumptions:
• Adjustment of selling prices to offset inflationary pressure over the period.
• Normalization of global supply chains.
• Stabilization of the geopolitical and macroeconomic environment.
• Constant exchange rates and no impact from future acquisitions or divestments.
Sraegicandoperaionalhighlighs
Interim Report September 1, 2022 – August 31, 2023
Chr. Hansen Holding A/S www.chr-hansen.com Page 4/27
Market developments
Food Cultures & Enzymes
According to the latest Company estimates, the sector outlook for dairy, meat and processed food categories remains
challenged. For 2023, Chr. Hansen expects flat to slightly declining volume growth as growth in the cheese segments is
expected to be offset by declining markets for fermented milk, meat and processed food.
Health & Nutrition
According to the latest Company estimates, the sector growth of probiotic human health products is in line with the mid-
term outlook of 4-6%, with continued softness in North America and South Korea. EMEA and China continue to develop
favorably.
Customer interest in HMOs remained high with further penetration of HMOs into infant formula products. Product
registrations have been achieved in key markets, including the EU. Chr. Hansen has received approval from the Chinese
authorities with regards to the technology to produce each of three HMOs (2’-FL, LNT and 3-FL). The approval enables
Chr. Hansen to apply for the final approval of the three HMOs with Chinese authorities.
Demand for microbial-based solutions for plant protection developed favorably, supported by strong commodity prices,
which remain at a high level. Feed prices have decreased, but remain at a high level and are having an adverse impact on
the selling environment for animal feed probiotics.
Sales performance
Q4 2022/23 revenue amounted to EUR 352 million, up 7% from EUR 328 million in Q4 2021/22. The impact from
exchange rates was negative by 9 percentage points.
Organic growth was 16% in Q4, driven by volume growth and pricing. The Lighthouses delivered 41% organic growth
combined in Q4, while the core businesses delivered 14% organic growth.
Year-to-date organic growth was 11%, which adjusted for a negative currency impact of 1% corresponded to a revenue
increase of 10% to EUR 1,334 million. The Lighthouses accounted for approximately 10% of revenue and delivered 24%
organic growth combined for the year to date, while the core businesses delivered 10% organic growth.
Revenue growth, Group
10%
17%
13%
12%
15%
11%
5%
7%
9%
14%
9%
6%
10%
11%
9%
16%
Q1
21/22
Q2
21/22
Q3
21/22
Q4
21/22
Q1
22/23
Q2
22/23
Q3
22/23
Q4
22/23
EUR growth Organic growth
Businessreie
Interim Report September 1, 2022 – August 31, 2023
Chr. Hansen Holding A/S www.chr-hansen.com Page 5/27
Sales performance by segment
Food Cultures & Enzymes
Q4 2022/23 revenue amounted to EUR 217 million, up 6% from EUR 205 million in Q4 2021/22. Revenue was negatively
impacted by 10% from exchange rates. Organic growth was 16%, driven by price adjustments and solid volume growth.
Dairy delivered strong growth supported by pricing initiatives and strong momentum in both fresh dairy and cheese as
well as in the lighthouses within bioprotection and fermented plant bases.
Food & Beverages delivered strong growth, driven by a combination of pricing and solid volumes.
Year-to-date organic growth was 11%, which adjusted for a negative currency impact of 2% corresponded to a revenue
increase of 9% to EUR 828 million.
Revenue growth, Food Cultures & Enzymes
Health & Nutrition
Q4 2022/23 revenue amounted to EUR 135 million, up 10% from EUR 123 million in Q4 2021/22. Revenue was negatively
impacted by 6% from exchange rates. Organic growth was 16%, driven by strong volume growth combined with pricing
initiatives.
Human Health & HMO delivered very strong growth, mainly driven by volume, but also by price. Volumes were strong
due to the EMEA and NA regions developing well, while volumes in APAC were more modest due to continued market
softness in South Korea. The volume growth was positively impacted by early timing of orders in Human Health.
Animal & Plant Health delivered solid growth, mainly supported by strong growth in Plant Health and price increases in
Animal Health. The growth was positively impacted by the timing of orders in Animal & Plant Health.
Year-to-date organic growth was 11%, and with no impact from exchange rates, this corresponded to a revenue increase
of 11% to EUR 506 million.
Revenue growth, Health & Nutrition
8%
8%
9%
10%
12%
12%
5%
6%
7%
7%
6%
5%
8%
12%
10%
16%
Q1
21/22
Q2
21/22
Q3
21/22
Q4
21/22
Q1
22/23
Q2
22/23
Q3
22/23
Q4
22/23
EUR growth Organic growth
16%
33%
21%
14%
21%
10%
6%
10%
13%
26%
13%
6%
12%
9%
7%
16%
Q1
21/22
Q2
21/22
Q3
21/22
Q4
21/22
Q1
22/23
Q2
22/23
Q3
22/23
Q4
22/23
EUR growth Organic growth
Businessreie
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Chr. Hansen Holding A/S www.chr-hansen.com Page 6/27
Sales performance by region
Revenue growth by region
Europe, Middle East and Africa (EMEA), 38% of revenue YTD 2022/23
Q4 2022/23 organic growth was 20%, while revenue in EUR increased by 13%. Organic growth was driven by both
Health & Nutrition and Food Cultures & Enzymes. Health & Nutrition was supported by very strong volume growth and
pricing initiatives, while Food Cultures & Enzymes was supported by pricing, including EUR-based pricing, as well as solid
volume growth.
Year-to-date organic growth was 16%, which adjusted for a negative currency impact of 3% corresponded to a revenue
increase of 13% to EUR 511 million.
North America (NA), 33% of revenue YTD 2022/23
Q4 2022/23 organic growth was 15%, while revenue in EUR increased by 9%. Organic growth was driven by both Health
& Nutrition and Food Cultures & Enzymes. Health & Nutrition was supported by very strong volume growth and pricing
initiatives. Food Cultures & Enzymes was driven by solid volume growth across categories.
Year-to-date organic growth was 7%, which adjusted for a positive currency impact of 3% corresponded to a revenue
increase of 10% to EUR 438 million.
Asia-Pacific (APAC), 17% of revenue YTD 2022/23
Q4 2022/23 organic growth was 5%, while revenue in EUR declined by 3%. Organic growth was driven by both Food
Cultures & Enzymes and Health & Nutrition. China contributed positively to the organic growth of Food Cultures &
Enzymes. Organic growth was mainly driven by volume, but was also supported by pricing.
Year-to-date organic growth was 4%, which adjusted for a negative currency impact of 3% corresponded to a revenue
increase of 1% to EUR 230 million.
Latin America (LATAM), 12% of revenue YTD 2022/23
Q4 2022/23 organic growth was 20%, while revenue in EUR increased by 1%. Revenue was negatively impacted by 19%
due to exchange rates. Organic growth was driven by pricing initiatives, including EUR-based pricing, and volume growth
in Food Cultures & Enzymes, while Health & Nutrition delivered a slight decline.
Year-to-date organic growth was 20%, which adjusted for a negative currency impact of 9% corresponded to a revenue
increase of 11% to EUR 155 million.
13%
9%
-3%
1%
20%
15%
5%
20%
EMEA NA APAC LATAM
EUR growth Organic growth
Businessreie
Interim Report September 1, 2022 – August 31, 2023
Chr. Hansen Holding A/S www.chr-hansen.com Page 7/27
Gross margin
The Q4 2022/23 gross margin declined by 1.3 percentage point to 54.8%, negatively impacted by exchange rate
developments and higher input costs, partly offset by pricing and productivity initiatives.
The year-to-date gross margin was 54.2%, compared to 55.5% in the same period last year, mainly due to inflationary
pressure which was only partly offset by pricing and productivity initiatives.
Operating expenses
Q4 2022/23 operating expenses totaled EUR 94 million, up 2% from EUR 93 million in Q4 2021/22. Year-to-date
operating expenses increased by 4% to EUR 365 million.
Margins, Group
EBIT b.s.i. and EBIT margin before special items
EBIT b.s.i. amounted to EUR 99 million, up 8% from EUR 91 million in Q4 2021/22. The increase was driven by volume
growth, a positive contribution from pricing initiatives, and stable operating expenses, which was partly offset by a
negative impact from higher input costs and exchange rates.
The EBIT margin b.s.i. was 28.0%, compared to 27.9% in Q4 2021/22, as the strong sales development including the
impact from pricing initiatives were offset by a negative impact from higher input costs and exchange rates.
Year-to-date EBIT b.s.i. increased by EUR 33 million to EUR 358 million, while the EBIT margin b.s.i. was 26.9%, compared
to 26.8% last year. The increase was driven by a positive contribution from pricing initiatives and volume growth, which
was partly offset by a negative impact from higher input costs.
Food Cultures & Enzymes’s Q4 2022/23 EBIT b.s.i. amounted to EUR 68 million, up 1% from EUR 67 million in Q4
2021/22. The EBIT margin b.s.i. was 31.1%, compared to 32.5% last year. The decrease was mainly driven by higher input
costs, which was partly offset by pricing initiatives. The year-to-date EBIT margin b.s.i. was 29.6%, compared to 29.9%
last year.
Health & Nutrition’s Q4 2022/23 EBIT b.s.i. amounted to EUR 31 million, up 26% from EUR 25 million in Q4 2021/22.
The EBIT margin b.s.i. was 23.0%, compared to 20.1% last year. The increase was driven by a positive impact from
scalability and pricing initiatives, which were partly offset by a negative impact from exchange rates and higher input
costs. The year-to-date EBIT margin b.s.i. was 22.4%, compared to 21.4% last year.
Special items and EBIT
Special items amounted to an expense of EUR 7 million in Q4 2022/23, compared to an expense of EUR 4 million last
year. Special items related to the proposed merger with Novozymes. EBIT amounted to EUR 91 million, up 4% from EUR
88 million in Q4 2021/22. The EBIT margin ended at 25.8%, compared to 26.7% in Q4 2021/22.
Year-to-date special items were an expense of EUR 21 million, compared to an expense of EUR 5 million in the same
period last year. EBIT amounted to EUR 337 million, up 5% from EUR 321 million in the same period last year. The EBIT
margin was 25.3%, compared to 26.3% in the same period last year.
54.9%
56.0%
55.1%
56.1%
53.9%
53.8%
54.3%
54.8%
24.4%
27.7%
26.7%
27.9%
24.7%
27.0%
27.5%
28.0%
Q1
21/22
Q2
21/22
Q3
21/22
Q4
21/22
Q1
22/23
Q2
22/23
Q3
22/23
Q4
22/23
Gross margin EBIT margin b.s.i.
Businessreie
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Chr. Hansen Holding A/S www.chr-hansen.com Page 8/27
Net financials, share of JV and tax
Net financial expenses amounted to EUR 9 million, compared to EUR 6 million in Q4 2021/22. The increase was due to
higher interest expenses. Year-to-date net financial expenses amounted to EUR 29 million, up from EUR 20 million last
year, due to higher interest expenses.
The Bacthera JV produced a EUR 4 million loss to Chr. Hansen, compared to a loss of EUR 3 million in Q4 2021/22. Year-
to date, the loss was EUR 11 million, up from EUR 8 million in the same period last year.
Income taxes amounted to EUR 18 million, up from EUR 16 million in Q4 2021/22, reflecting a tax rate of 22.7%. Year-to-
date income taxes amounted to EUR 70 million, up from EUR 68 million last year. Year to date, the effective tax rate was
23.6%, compared to 23.2% last year.
Profit for the period
Profit for the quarter amounted to EUR 60 million, down from EUR 62 million in Q4 2021/22. Year-to-date profit
amounted to EUR 227 million, up from EUR 225 million in the same period last year. Year-to-date profit adjusted for
special items amounted to EUR 248 million. An interim dividend of DKK 7.72 or EUR 1.04 per share, equal to 55% of the
adjusted profit for the period September 1, 2022 to August 31, 2023, will be paid on October 17, 2023 (ex-dividend date
of October 13, 2023).
Earnings per share, diluted, amounted to EUR 0.45, compared to EUR 0.47 in Q4 2021/22. Year-to-date earnings per
share, diluted, amounted to EUR 1.72, compared to EUR 1.71 in the same period last year.
Cash flows
The year-to-date cash flow from operating activities b.s.i. was EUR 338 million, up 8% from EUR 314 million in the same
period last year, driven by the improvement in operating profit and lower taxes paid as 2021/22 was negatively impacted
by a one-off tax payment related to the acquisition of HSO. This was partly offset by a negative change in working capital
mainly driven by an increase in trade receivables related to the timing of revenue during Q4.
The year-to-date cash flow used for operational investing activities was EUR 136 million, down 4% from EUR 142 million
in the same period last year. The year-to-date free cash flow b.a.s.i. was EUR 202 million, up 17% from EUR 172 million in
the same period last year due to the higher cash flow from operating activities.
During 2022/23, Chr. Hansen provided loans amounting to EUR 27 million and investments amounting to EUR 13 million
to the Bacthera joint venture with Lonza, mainly to support the ongoing work to prepare production facilities for the SER-
109 agreement with Seres Therapeutics. Bacthera will later receive milestone payments from Seres Therapeutics covering
part of these investments.
Equity, Group
Total equity amounted to EUR 1,900 million, compared to EUR 1,824 million at August 31, 2022. An ordinary dividend for
the 2021/22 financial year totaling EUR 125 million was paid out in Q1 2022/23.
Net debt, Group
Net interest-bearing debt amounted to EUR 932 million, or 2.0x EBITDA b.s.i., compared to EUR 881 million, or 2.0x
EBITDA b.s.i., at August 31, 2022. The increase in net interest-bearing debt was due to a financial lease related to the new
Innovation Campus in Hoersholm, Denmark.
Return on invested capital
Invested capital excluding goodwill amounted to EUR 1,561 million, up 10% from EUR 1,417 million at August 31, 2022.
The increase was driven by property, plant and equipment, and trade receivables.
The year-to-date return on invested capital excluding goodwill was 24.1%, compared to 24.0% last year. The increase
was driven by Health & Nutrition, while Food Cultures & Enzymes was down compared to last year.
Goodwill amounted to EUR 1,501 million, compared to EUR 1,518 at August 31, 2022. Return on invested capital including
goodwill was 12.0%, compared to 11.4% last year.
Businessreie
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Chr. Hansen Holding A/S www.chr-hansen.com Page 9/27
Outlook
A condition for the completion of the combination of Chr. Hansen Holding A/S (Chr. Hansen) and Novozymes A/S was a
change of financial year of Chr. Hansen to follow the calendar year. The change was approved at the extraordinary
general meeting on March 30. The current financial year was therefore extended by four months and runs from
September 1, 2022 to December 31, 2023 (16 months). To ensure transparency on the financial performance Chr. Hansen
has maintained its original guidance for the period September 1, 2022 to August 31, 2023, supplemented with a
supporting outlook for the calendar year from January 1 to December 31, 2023.
Outlook, January 1, 2023 – December 31, 2023
Organic revenue growth
In light of the performance for the first eight months of 2023, the outlook organic revenue growth is adjusted to be in the
range of 10-12% (previously 9-12%). The impact from exchange rates on revenue is expected to be negative.
As expectations for underlying market growth for the remainder of 2023 remain modest given the current uncertain
geopolitical and macroeconomic environment, organic revenue growth for the remaining four months of 2023 is expected
to be driven primarily by price growth including a positive impact from EUR-based pricing.
EBIT b.s.i. and EBIT margin b.s.i.
The EBIT margin b.s.i. is expected to be in the range of 26-27% compared to 26.3% in the same period last year.
Free cash flow b.s.i.
Free cash flow b.s.i. is now expected to be EUR 190-230 million (previously EUR 200-250 million) compared to EUR 152
million in the same period last year, mainly due to timing of CAPEX payments.
Sensitivity to the outlook
Continued changes in the geopolitical and macroeconomic climate, including additional sanctions against Russia or other
countries where Chr. Hansen operates, supply disruptions and developments in raw material and other input costs, such
as energy, may impact the outlook for the remainder of 2023.
The most significant currency exposure relates to USD, while exposure to other currencies is relatively modest. A 5%
increase/decrease in the EUR/USD exchange rate would have a positive/negative annualized (12 months) impact on
revenue measured in EUR of around EUR 25 million, while the impact on EBIT and cash flow is approximately two thirds of
the impact on revenue. The outlook is based on actual rates until October 11, 2023, and for the remainder of the year
assuming constant exchange rates at the current level of EUR/USD rate of 1.06 (previously EUR/USD rate of 1.09).
Organic revenue growth is sensitive to exchange rate fluctuations in currencies for which Chr. Hansen applies an EUR-
based pricing model, while protecting the impact on EBIT and cash flow.
Ouloo
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Chr. Hansen Holding A/S www.chr-hansen.com Page 10/27
Conference call
Chr. Hansen will host a conference call on October 12, 2023 at 10:00 am CEST. The conference call can be accessed via
the Company’s website, www.chr-hansen.com.
Contact details
Anders Mohr Christensen, VP Group Strategy & Investor Relations, +45 25 15 23 64
Disa Tuominen, Investor Relations Manager, +45 60 38 58 26
Company information
Tel. + 45 45 74 7 4 74
Company reg. no.: 283186 77
Forward-looking statements
This company announcement contains forward-looking statements that reflect management’s current views and
expectations with respect to Chr. Hansen’s future and potential financial performance.
Those forward-looking statements are based upon data and information currently available to the Company, and on a
variety of assumptions, many of which may be beyond our control and subject to risks and uncertainties that may cause
the actual results of the Company or the industry to differ materially from such forward-looking statements.
The information, opinions and forward-looking statements are provided as of the date stated in this document, and the
Company is under no obligation to publish any updates thereof except for what is required by applicable law or stock
exchange rules and regulations.
About Chr. Hansen
Chr. Hansen is a global, differentiated bioscience company that develops natural ingredient solutions for the food,
nutritional, pharmaceutical and agricultural industries. At Chr. Hansen, we are strongly positioned to drive positive
change through microbial solutions. We have worked for over 145 years to enable sustainable agriculture, better food and
healthier living for more people around the world. Our microbial and fermentation technology platforms, including our
broad and relevant collection of around 50,000 microbial strains, have game-changing potential. Matching customer
needs and global trends, we continue to unlock the power of good bacteria to respond to global challenges such as food
waste, global health and the overuse of antibiotics and pesticides. As the world’s most sustainable food ingredients
company, we touch the lives of more than 1 billion people every day. Driven by our legacy of innovation and curiosity to
pioneer science, our purpose – To grow a better world. Naturally. – is at the heart of everything we do.
ddiionalinormaion ddiionalinormaion
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Chr. Hansen Holding A/S www.chr-hansen.com Page 11/27
Executive Board
Board of Directors
SaemenoheBoardoDirecors
andheecuieBoard
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EUR million
Q4
2022/23
Q4
2021/22
YTD
2022/23
YTD
2021/22
Revenue
Cost of sales
(159.4 )
(144.0 )
(611.1 )
(541.5 )
Gross profit
Research and development expenses
(26.2 )
(24.9 )
(99.8 )
(96.8 )
Sales and marketing expenses
(46.9 )
(46.5 )
(182.9 )
(173.9 )
Administrative expenses
(22.5 )
(22.6 )
(86.0 )
(82.0 )
Other operating income
Other operating expenses
(0.6 )
(1.1 )
(1.6 )
(4.9 )
Operating profit before special items (EBIT b.s.i.)
Special items
(7.4 )
(3.9 )
(21.3 )
(4.9 )
Operating profit (EBIT)
Net financial expenses
(9.0 )
(6.1 )
(29.0 )
(20.0 )
Share of loss in joint ventures
(4.2 )
(2.9 )
(10.7 )
(8.0 )
Profit before tax
Income tax
(17.7 )
(16.4 )
(70.3 )
(67.8 )
Profit for the period
Earnings per share, EUR
Earnings per share
Earnings per share, diluted
Incomesaemen
Interim Report September 1, 2022 – August 31, 2023
Chr. Hansen Holding A/S www.chr-hansen.com Page 13/27
EUR million
Q4
2022/23
Q4
2021/22
YTD
2022/23
YTD
2021/22
Profit for the period
Items that will not be reclassified subsequently to the income statement
Remeasurements of defined benefits plans
Items that will be reclassified subsequently to the income statement
when specific conditions are met
Exchange rate adjustments of foreign Group companies
(9.8 )
Reclassification of exchange rate adjustment of foreign Group companies
Fair value adjustments of interest rate hedges
(1.4 )
Tax related to items recognized in other comprehensive income
Other comprehensive income for the period
(9.0 )
Total comprehensive income for the period
Attributable to:
Shareholders of Chr. Hansen Holding A/S
Statement of comprehensive income
Interim Report September 1, 2022 – August 31, 2023
Chr. Hansen Holding A/S www.chr-hansen.com Page 14/27
EUR million
Q4
2022/23
Q4
2021/22
YTD
2022/23
YTD
2021/22
Operating profit
Non
-cash adjustments 33.1 20.1 116.7 100.7
Change in working
capital 6.9 17.6 (60.5 )
(32.5 )
Financial items, net
(11.8 )
(6.3 )
(31.3 )
(16.3 )
Taxes paid
(5.5 )
(2.0 )
(45.0 )
(64.0 )
Cash flows from operating activities
Investments in intangible assets
(6.1 )
(6.0 )
(20.3 )
(22.3 )
Investments in property, plant and equipment
(46.1 )
(58.4 )
(116.2 )
(119.3 )
Cash flows from operational investing activities
(52.2 )
(64.4 )
(136.5 )
(141.6 )
Investments in joint ventures
Loans to joint ventures
(8.7 )
(6.1 )
(27.3 )
(10.8 )
Cash flows from investing activities
(60.9 )
(70.5 )
(176.3 )
(152.4 )
Free cash flow
Borrowings
Repayment of
borrowings (73.6 )
(15.4 )
(269.5 )
(167.1 )
Purchase of treasury shares
Sale of treasury shares
Dividends paid, net
(115.9 )
Cash flows from financing activities
(58.9 )
(24.6 )
(158.7 )
(142.2 )
Net cash flow for the period
(6.0 )
Cash and cash equivalents, beginning of period
Unrealized exchange gains/(losses) included in cash and cash equivalents
(1.9 )
Net cash
flow for the period (6.0 )
Cash and cash equivalents, end of period
Cash flow statement
Interim Report September 1, 2022 – August 31, 2023
Chr. Hansen Holding A/S www.chr-hansen.com Page 15/27
EUR million
Aug 31,
2023
Aug 31,
2022
ASSETS
Non
-current assets
Goodwill
Other intangible assets
Property, plant and equipment
Investments in joint ventures
Receivables from joint ventures
Other receivables
Deferred tax
Total non
-current assets 2,909.3 2,818.4
Current assets
Inventories
Trade receivables
Tax receivables
Other receivables
Prepayments
Cash and cash equivalents
Total current
assets 521.2 498.4
Total assets
Balance sheet
Interim Report September 1, 2022 – August 31, 2023
Chr. Hansen Holding A/S www.chr-hansen.com Page 16/27
EUR million
Aug 31,
2023
Aug 31,
2022
EQUITY AND LIABILITIES
Equity
Share capital
Currency translation reserve
(54.4 )
(15.6 )
Interest rate hedging reserve
Retained earnings
Total equity
Non
-current liabilities
Employee benefit obligations
Deferred tax
Provisions
Borrowings
Deferred gain, sale and lease back
Other payables
Total non
-current liabilities 1,168.0 1,105.7
Current liabilities
Borrowings
Trade payables
Tax payables
Deferred gain, sale and lease back
Other payables
Total current liabilities
Total liabilities
Total equity and liabilities
Balance sheet
(continued)
Interim Report September 1, 2022 – August 31, 2023
Chr. Hansen Holding A/S www.chr-hansen.com Page 17/27
EUR
million
Share
capital
Currency
translation
reserve
Interest
rate
hedging
reserve
Retained
earnings Total
2022/23
Equity at September 1
Total comprehensive income for the
period
(0.4 )
(38.8 )
Transactions with owners
Sale of treasury shares
Share
-based payments - - - 11.1 11.1
Tax related to share
-based payments - - - (2.0 )
(2.0 )
Dividends, net
(124.7 )
Equity at August 31
EUR million
Share
capital
Currency
translation
reserve
Interest
rate
hedging
reserve
Retained
earnings Total
2021/22
Equity at
September 1 177.3 (73.7 )
(4.9 )
Total comprehensive income for the period
Transactions with owners
Purchase of treasury shares
(9.2 )
Share
-based payments - - - 12.9 12.9
Tax related to share
-based payments - - - 0.9 0.9
Dividends, net
(115.9 )
Equity at August 31
Statement of
changes in equity
Interim Report September 1, 2022 – August 31, 2023
Chr. Hansen Holding A/S www.chr-hansen.com Page 18/27
Accounting policies
This unaudited interim report has been prepared in accordance with IAS 34 and additional Danish regulations for the
presentation of quarterly interim reports by listed companies. The interim report has been prepared in accordance with
the accounting policies set out in the Annual Report for 2021/22, except for all new, amended or revised accounting
standards and interpretations (IFRSs) adopted by the European Union effective for financial years beginning on or after
January 1, 2022. These have not had a material impact on the consolidatated interim report.
Significant accounting estimates and judgements
In preparing this interim report, Management has made various accounting estimates and assumptions that may
significantly influence the amounts recognized in the consolidated financial statement and related information at the
reporting date. The accounting estimates and assumptions which Management considers to be material for the
preparation and understanding of the interim report are stated in Note 1.2 in the Annual Report 2021/22 and relate to,
e.g., income tax and deferred tax, goodwill, other intangible assets, property, plant and equipment as well as inventories.
Change of financial year
At the Extraordinary General Meeting held on March 30, 2023, it was approved to change Chr. Hansen’s financial year to
follow the calendar year (January 1 - December 31). The transition period is from September 1, 2022 to December 31,
2023 in accordance with section 15(3)(3) of the Danish Financial Statements Act.
Noeccouningpolicies
Interim Report September 1, 2022 – August 31, 2023
Chr. Hansen Holding A/S www.chr-hansen.com Page 19/27
EURmillion
Food
Cultures&
Enzymes
Health&
Nutrition
Not
allocated Group
Q
Incomesaemen
eenue
-
Ugroh
-
Organicgroh
-
BIDbeorespecialiems
-
BIDmarginbeorespecialiems
-
moriaiondepreciaionandimpairmenlosses
-
BIbeorespecialiems
-
BImarginbeorespecialiems
-
Shareolossojoinenures
- -
Specialiemsandneinancialepenses
- -
Proibeorea
EURmillion
Food
Cultures&
Enzymes
Health&
Nutrition
Not
allocated Group
D
Incomesaemen
eenue
-
Ugroh
-
Organicgroh
-
BIDbeorespecialiems
-
BIDmarginbeorespecialiems
-
moriaiondepreciaionandimpairmenlosses
-
BI
beorespecialiems -
BImarginbeorespecialiems
-
Shareolossojoinenures
- -
Specialiemsandneinancialepenses
- -
Proibeorea
NoeSegmeninormaion
Interim Report September 1, 2022 – August 31, 2023
Chr. Hansen Holding A/S www.chr-hansen.com Page 20/27
EURmillion
Food
Cultures&
Enzymes
Health&
Nutrition
Not
allocated Group
Q
Incomesaemen
eenue
-
U
groh -
Organicgroh
-
BIDbeorespecialiems
-
BIDmarginbeorespecialiems
-
moriaiondepreciaionandimpairmenlosses
-
BIbeorespecialiems
-
BImarginbeorespecialiems
-
Shareolossojoinenures
- -
Specialiemsandneinancialepenses
- -
Proibeorea
EURmillion
Food
Cultures&
Enzymes
Health&
Nutrition
Not
allocated Group
D
Incomesaemen
eenue
-
Ugroh
-
Organicgroh
-
BIDbeorespecialiems
-
BIDmarginbeorespecialiems
-
moriaiondepreciaionandimpairmenlosses
-
BIbeorespecialiems
-
BImarginbeorespecialiems
-
Shareolossojoinenures
- -
Specialiemsandneinancialepenses
- -
Proibeorea
Noe
Segmeninormaion
coninued
Interim Report September 1, 2022 – August 31, 2023
Chr. Hansen Holding A/S www.chr-hansen.com Page 21/27
EURmillion
Food
Cultures&
Enzymes
Health&
Nutrition
Not
allocated Group
ug
sses
oodill
-
Oherinangibleasses
-
Properplanandequipmen
-
Ohernon
-currenasses - -
oalnon
-currenasses
Inenories
-
radereceiables
-
Oher
asses - -
oalcurrenasses
oalasses
iabiliies
radepaables
-
Deerredgainsaleandleasebac
-
Oher
liabiliies - -
oalliabiliies
Neoringcapial
-
Inesedcapialecludinggoodill
-
OICecludinggoodill
-
ddiionsonon
-currenassesecludingjoinenuresoherreceiablesand
deerreda
-
Noe
Segmeninormaion
coninued
Interim Report September 1, 2022 – August 31, 2023
Chr. Hansen Holding A/S www.chr-hansen.com Page 22/27
EURmillion
Food
Cultures&
Enzymes
Health&
Nutrition
Not
allocated Group
ug
sses
oodill
-
Oherinangibleasses
-
Properplanandequipmen
-
Ohernon
-currenasses - -
oalnon
-currenasses
Inenories
-
radereceiables
-
Oherasses
- -
oalcurrenasses
oalasses
iabiliies
radepaables
-
Deerredgainsaleandleasebac
-
Oherliabiliies
- -
oalliabiliies
Neoringcapial
-
Inesedcapialecludinggoodill
-
OICecludinggoodill
-
ddiionsonon
-currenassesecludingjoinenuresoherreceiablesand
deerreda
-
Noe
Segmeninormaion
coninued
Interim Report September 1, 2022 – August 31, 2023
Chr. Hansen Holding A/S www.chr-hansen.com Page 23/27
EURmillion
EMEA
North
America APAC LATAM Group
Q
eenue
Ugroh
Organicgroh
EURmillion
EMEA
North
America APAC LATAM Group
D
eenue
Ugroh
Organicgroh
Non
-currenassesecludingjoinenuresoherreceiablesand
deerreda
EURmillion
EMEA
North
America APAC LATAM Group
Q
eenue
Ugroh
Organicgroh
EURmillion
EMEA
North
America APAC LATAM Group
D
eenue
Ugroh
Organicgroh
Non
-currenassesecludingjoinenuresoherreceiablesand
deerreda
Noe
Segmeninormaion
coninued
Interim Report September 1, 2022 – August 31, 2023
Chr. Hansen Holding A/S www.chr-hansen.com Page 24/27
EURmillion
Q
Q
YTD
YTD
DepensesP
-
moriaion
-
Impairmen
Capialiaion
D
ependiuresincurred
NoeDependiures
Interim Report September 1, 2022 – August 31, 2023
Chr. Hansen Holding A/S www.chr-hansen.com Page 25/27
EURmillion
Q
Q
YTD
YTD
BIbsi
moriaionand
impairmenlosses
BIbsi
Depreciaionandimpairmenlosses
BIDbsi
NoeBIbsioBIDbsi NoeBIbsioBIDbsi
Interim Report September 1, 2022 – August 31, 2023
Chr. Hansen Holding A/S www.chr-hansen.com Page 26/27
Apart from the events recognized or disclosed in the financial statements, no events of importance to the financial
statements have occurred after the balance sheet date.
Noe
ensaerhebalance
sheedae
Interim Report September 1, 2022 – August 31, 2023
Chr. Hansen Holding A/S www.chr-hansen.com Page 27/27
In the table below, financial highlights and key figures have been restated to reflect calendar quarters. The calendar
quarterly financial highlights and key figures have not been audited or reviewed.
months
EURmillion
Q
Q
Q
Q
FY
Q
Q
YTD
IncomesaemenU
million
eenue
rossproi
BIDbsi
BIbsi
BIbsi
Specialiems
BI
Proiorheperiod
CashlosUmillion
Operaingcashlo
Inesingcashlo
reecashlobasi
eraios
rossmargin
BIDmarginbsi
BImarginbsi
BImarginbsi
Operaionalepenses
OICeclgoodill
roh
Organicgroh
olumemi
Price
Currencies
Ugroh
Noe
Calendarquarerlinancial
highlighsandeigures