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UPDATE 1-Chr. Hansen ups revenue outlook after Q2 rise

Published 04/06/2011, 02:50 AM
Updated 04/06/2011, 02:52 AM

* Q2 EBIT 36.1 mln euros, above avg forecast of 35.7 mln

* Company raises full-year revenues guidance

COPENHAGEN, April 6 (Reuters) - Danish food ingredients maker Chr. Hansen posted higher profits and revenue for the second quarter, helped by its ability to pass on higher raw materials prices.

Operating profits for the three months to end-February rose to 36.1 million euros ($51.20 million) from 28.5 million in the same quarter a year earlier.

The result narrowly beat analysts' average estimate of 35.7 million euros in a Reuters poll of analysts, but was within the range of estimates.

Chr. Hansen said it expected full-year 2010/11 revenue growth of 12-14 percent, up from its previous guidance of 11-13 percent.

It said it expected its 2010/11 operating profit (EBIT) margin before special items to be at or above 25 percent. In January, it had forecast the margin would be above 25 percent.

Second-quarter revenues grew 24 percent year-on-year to 159.6 million euros, above analysts' average estimate of 153 million in the Reuters poll.

Organic sales growth of 19 percent was positively affected by approximately 8 percentage points from increased sales prices reflecting higher raw material prices for food colouring carmine, Chr. Hansen said.

"We continue to see a strong move towards natural colors as a replacement of synthetic colors, and as a consequence the Colors & Blends Division continues to deliver strong volume growth," Chief Executive Lars Frederiksen said in a statement.

(Editing by Jane Merriman)

(Copenhagen newsroom, tel: +45 3396 9649, e-mail: copenhagen.newsroom@thomsonreuters.com)) ($1=.7050 Euro)

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