Group revenue for the full year was DKK 4,381 million (4,474), which was 2% lower than in the previous year. The decline was primarily attributable to the exclusion of August from total sales of the Ingredients Sector, equivalent to minus 7%, and the effect of currency translation, representing minus 1%. Adjusted for this, the rate of organic growth of Group revenue was 6%, which was primarily driven by the sales growth in the Allergy Sector.

EBITA, operating profit before the settlement of share options and amortization of goodwill, rose to DKK 412 million (385), which was attributable to the improvement of earnings from the core business of the Allergy Sector. EBITA from the Ingredients Sector was DKK 78 million lower year on year, primarily as EBITA for August was not consolidated. Following the cash settlement of the Allergy Sector’s share option plan by DKK 46 million and amortization of the Group’s goodwill of DKK 59 million (65), EBIT amounted to DKK 307 million (320).

Consolidated Group’s ordinary profit before gain on the divestment of the Ingredients Sector and tax was DKK 189 million (202) including 11 months’ operations in the Ingredients Sector, which should be compared to the latest forecast of DKK 275-295 million based on 12 months’ operations in the Ingredients Sector.

Gain before tax on the divestment of the Ingredients Sector was DKK 4,206 million.

In connection with the transaction, usual representations and warranties were made, which will expire successively over the coming years. See notes 3 and 25 to the financial statements.

The audited closing balance sheet as at July 29, 2005 prepared by the buyer is currently undergoing final verification. Any adjustments of the gain on the transaction will be recognized in the financial statements for 2005/06.

The calculated tax on the ordinary profit was DKK 75 million. This corresponds to an effective tax rate of approximately 2%. The low tax rate was due to the fact that most of the ordinary profit for the year consists of tax-free capital gains on shares in connection with the divestment of the companies in the Ingredients Sector.

Extraordinary income after tax relates to the Serbia case against Chr. Hansen Holding, which was settled in the course of the year. The costs totalled DKK 40 million. The original provision taken in 2002/03 was DKK 60 million. The remaining DKK 20 million was recognized as income in 2004/05. The tax effect was DKK 6 million.

Net profit including minority interests was DKK 4,334 million (108), and net profit attributable to Chr. Hansen Holding A/S was DKK 4,288 million (76).

Cash flow statement
DKKm	2004/05		2003/04
Operating profit		307	320
Change in working capital, adjustments etc.		344	251
Interests and taxes etc. paid		(244)	(236)
Cash flow from operating activities		407	335
Investments		5,938	(349)
Free cash flow		6,345	(14)
Cash flow from financing activities		(928)	(38)
Net cash flow for the year		5,417	(52)
Cash and cash equivalents at September 1		123	175
Net cash flow for the year		5,417	(52)
Cash and cash equivalents at August 31		5,540	123

The free cash flow for the year of DKK 6,345 million (an outflow of 14) was affected by the proceeds from the divestment of the Ingredients Sector and by acquisitions of companies and operations, primarily the acquisition of Allerbio SA in June.

In connection with the receipt of the sales proceeds, the Chr. Hansen Group has refinanced or repaid various bank, financial and mortgage loans at a total amount of DKK 882 million. The amount was recognized in cash flow from financing activities.

The cash inflow for the year totalled DKK 5,417 million (an outflow of 52), and cash and cash equivalents totalled DKK 5,540 million at year-end (123). Excess liquidity is invested in deposits for short fixed terms with various banks. The payment of the interim dividend of DKK 4,000 million in October 2005 subsequently reduced the Group’s cash and cash equivalents.

Equity stood at DKK 6,170 million on August 31, 2005, equivalent to 89% (36%) of total assets. Less the interim dividend of DKK 4,000 million and the expected ordinary dividend, the equity ratio is 74%.