The 2004/05 financial year was a watershed year. Following the divestment of the Ingredients Sector in July 2005, this is the last combined annual report of Chr. Hansen Holding A/S and the Chr. Hansen Group. At the annual general meeting to be held in December 2005 a resolution will be proposed to merge the holding company with ALK-Abelló A/S and change its name to ALK-Abelló A/S.
At the same time we will bid farewell to 130 years in food ingredients and welcome a new era for ALK-Abelló as the remaining activity of the listed company. In continuation of the divestment, the Board of Directors adopted a resolution in October to pay an interim dividend of DKK 4 billion to the company’s shareholders.
ALK-Abelló is well-prepared for the challenges that lie ahead. In recent years, ALK-Abelló has increased growth in its core business, launched new products and has innovative new products in the pipeline.
ALK-Abelló has achieved good results with the launch of SLITone®, which is enjoying success in the market for drop-based allergy vaccination in Southern and Central Europe. We consider the development of the new grass pollen allergy tablet GRAZAX®, which is expected to be launched in the first European markets at the end of 2006, a paradigm shift in the treatment of allergy. The most recently published clinical study, GT-08, shows that the tablet is effective, even in a very broad patient population. GRAZAX® is also very user-friendly and has a strong safety profile. In the coming years, a growing number of patients and physicians are expected to switch to allergy vaccination, which has the potential to eliminate allergy permanently, unlike traditional symptom-relieving medication.
The backbone of our company remains the core business of injection-based and drop-based vaccines, for which we achieved satisfactory growth in organic sales in the financial year just concluded. ALK-Abelló recorded revenue of DKK 1,217 million, corresponding to organic growth of 15%. This growth was achieved primarily by upgrading and focusing local sales and marketing activities.
A series of steps were also taken to rationalize and streamline ALK-Abelló’s business systems. Against this background, EBITA from our core business grew by 71% from DKK 143 million to DKK 245 million. In other words, we have a strong commercial platform to build on. The platform will allow ALK-Abelló to continue to balance investments in research and development of new products against sound growth and earnings in both new and existing markets.
Chr. Hansen Holding as a whole achieved a profit from ordinary activities before tax and the divestment of the Ingredients Sector of DKK 189 million, which was less than expected as the Ingredients Sector is included for only 11 months of the 2004/05 financial year. The gain on the divestment of the Ingredients Sector was DKK 4,206 million, which is in line with expectations.
The Board of Directors and Board of Management