Danish Chr. Hansen lowers long-term sales targets
summary：Danish food ingredients maker Chr. Hansen lowered its long-term sales target on Tuesday....
Danish food ingredients maker Chr. Hansen lowered its long-term sales target on Tuesday and said its operating margin is expected to grow at a slower pace in the years ahead due to investments in innovations and in emerging markets.
The company said it expected revenue to grow organically by 7 to 10 percent per year in the next five years, against an earlier guidance of 8 to 10 percent.
The strategy update, which was provided ahead of the company's capital markets day on Wednesday, did not specify why the sales growth is now seen at a lower level than before.
Chr. Hansen said it still expected its operating margin to improve in the next five years, but added that 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.
It still expected its free cash flow to increase over the five-year period.
The company kept its forecast for the 2013/13 financial year unchanged.
The company said it expected revenue to grow organically by 7 to 10 percent per year in the next five years, against an earlier guidance of 8 to 10 percent.
The strategy update, which was provided ahead of the company's capital markets day on Wednesday, did not specify why the sales growth is now seen at a lower level than before.
Chr. Hansen said it still expected its operating margin to improve in the next five years, but added that 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.
It still expected its free cash flow to increase over the five-year period.
The company kept its forecast for the 2013/13 financial year unchanged.