Chr. Hansen to expand research facilities as it posts 9% organic growth
Global natural colours specialist Chr. Hansen is to expand its R&D centre in Montpellier, France, amid 9% organic revenue growth for the first nine months of the financial year.
As part of its continued investment, the company’s facilities dedicated to colouring foodstuffs including confectionery, are due to begin in September.
The venture is expected to be completed by November 2019, and includes new areas for additional employees and its laboratory space will more than double present capabilities, as well as a new showroom for customers and training.
On its financial performance, the company posted revenues of €801 million year-to-date, as against €779.5 million for the same period last year, representing an overall growth rate of 3%.
Its figures for the third financial quarter were €282.7 million, compared against €278.4 million for the same period last year, showing an increase of 2%.
There had been particularly strong growth for its food cultures and enzymes division (12% up), health and nutrition market (increasing 8%), as well as its natural colours, which experienced 5% growth.
The company’s CEO, Mauricio Graber, welcomed the positive year-to-date results.
He said: “We are pleased to report that we maintained the sales momentum in Q3, led by broad-based growth in Food Cultures and Enzymes. In health and nutrition, the human health business in North America is improving, and growth in emerging markets remains strong. Animal health again delivered strong growth in EMEA, APAC and LATAM, where we are strengthening our presence. Growth in Natural Colors improved, driven primarily by APAC and EMEA.
Meanwhile Jacob Vishof Paulsen, interim executive vice president for Natural Colors, believed the expanded research facilities would prove a positive development for the company.
He said: “Innovation has always been the backbone to our business. This investment is fully aligned with our ambitions to continue to deliver unique products to the market.
“Today, we have the largest color portfolio in the industry and that stems from our innovation capabilities. We are constantly evaluating new sources of raw materials and innovative formulation technology to address an evolving market,”
Its latest expansion on its French research site which it bought 18 years ago, follows a recent announcement of a major investment in Milwaukee to create a new Natural Colors site in the US, including expanded laboratory and production capabilities.
“In line with our Nature’s no. 1 strategy, our continued investments into our innovation capabilities show our dedication to scientific excellence. We want to stay the undisputed leader in pioneering solutions within natural colors and coloring foods,” added Jacob.