Chr Hansen reinvents business strategy

Chr Hansen reinvents business strategy

New strategy targets organic revenue growth of 7 percent to 10 percent per year and puts the focus on natural.

Chr. Hansen announces its long-term strategy. The strategy targets organic revenue growth of 7 percent to 10 percent per annum in the coming five years, combined with further improvements in EBIT margin before special items. The improvement in margin is expected to be lower than historically due to investments in innovation, emerging markets, and the exploration of new growth opportunities in animal health, plant protection, and second-generation human health solutions.

Since relisting in 2010, Chr. Hansen has delivered solid organic growth combined with significant improvements in EBIT margin. In order to exploit its full potential, a strategy review was initiated in the beginning of 2013.

Nature's No.1: Grow the business of today—create the solutions of tomorrow "Chr. Hansen has a proud history and strong track record," said CEO Cees de Jong. "Based on a thorough review of our capabilities and an assessment of relevant market opportunities, we firmly believe we have an opportunity to take the company to the next level in terms of performance. We are excited about shaping our future.

"Our strategy builds on our core competences and is about evolution rather than revolution. The review has reaffirmed the attractive growth opportunities in Chr. Hansen's core businesses and identified new opportunities for leveraging the company's strong technology platform in the field of microbial solutions.

"Good bacteria are becoming an increasingly relevant way to address key unmet consumer and customer needs in an all-natural way, and we have the technology to develop these solutions. Simply put, we wish to be Nature's No.1."

Strategy consists of six main strategic themes:

1. Fully leveraging the potential of the Cultures & Enzymes Division

  • Chr. Hansen is the market leader in cultures and enzymes for the dairy market and has consistently outperformed market growth since 2009 while driving significant improvements in EBIT margin. The dairy market continues to hold attractive growth opportunities driven by fundamental category growth, especially in emerging markets, continued conversion, and unmet consumer and customer needs for better functionality and yield. To address these opportunities, Chr. Hansen will focus on new innovation (e.g. next-generation bio-protection and other functional innovation), securing undisputed leadership in emerging markets, developing customer-driven commercial excellence, and reaping further improvements in scalability.

2. Developing the microbial solutions platform in the Health & Nutrition Division
3. Creating further value in the Natural Colors Division
4. Reinforcing Chr. Hansen's position in emerging markets
5. Driving a step change in innovation
6. Generating the fuel for growth



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