CHR Hansen Half-Year Report 2022

Q2 2021/22 highlights

• Revenue amounted to EUR 304 million, up 17% from EUR 260 million in Q2 2020/21. Year-to-date revenue
  amounted to 572 million, up 14% from last year.
• Organic growth was 14% in Q2 2021/22 mainly driven by volume growth. The Lighthouses (Bioprotection,
  Fermented Plant Bases, Plant Health and HMO) delivered 12% organic growth combined, while the remaining core businesses delivered 14% organic growth. Year-to-date organic growth was 12%.

1. Food Cultures & Enzymes organic growth was 7% mainly driven by volume. Year-to-date organic growth was 7%.
2. Health & Nutrition organic growth was 26% driven by volume. Year-to-date organic growth was 20%.

• EBIT before special items (b.s.i.) amounted to EUR 84 million, up 20% from EUR 70 million in Q2 2020/21. The increase was driven by the strong sales performance in Health and Nutrition, while EBIT b.s.i. in Food Cultures & Enzymes was on par with the Q2 2020/21 level due to a negative impact from higher input costs. Year-to-date EBIT b.s.i. amounted to EUR 150 million, up 14% from last year.
• Free cash flow before acquisitions and special items (b.a.s.i.) amounted to EUR 31 million, down EUR 11 million from Q2 2020/21, as improved operating profit was offset by increased investing activities and a change in working capital. Year-to-date free cash flow b.a.s.i. amounted to EUR 86 million, up from EUR 35 million last year. The increase was due to both improved cash flow from operating activities and reduced operational investing activities.
• Implementation of price adjustments to reflect the inflationary pressure is progressing, however, as expected, with modest impact in Q2. Given the accelerated inflationary pressure on raw material, energy and logistics costs, in part driven by the Russian invasion of Ukraine, further price increases will be introduced in the second half. This will come with a certain delay impacting the outlook for the EBIT margin before special items for 2021/22 negatively.