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Frutarom achieves new records

Frutarom has reported another record quarter in sales, reaching $218.5 million. The company achieved net income of $26.1 million. The first half of 2015 was also a record-setting quarter for sales reaching $413 million, for net income reaching $47.5 million. Since the beginning of 2Q15, Frutarom has acquired five companies which are expected to generate […]

Frutarom has reported another record quarter in sales, reaching $218.5 million. The company achieved net income of $26.1 million. The first half of 2015 was also a record-setting quarter for sales reaching $413 million, for net income reaching $47.5 million.

Since the beginning of 2Q15, Frutarom has acquired five companies which are expected to generate annual sales of $97 million.

“We continue our rapid profitable growth journey and achieve record results despite the considerable effect of changes in the exchange rates of the various currencies that affected unfavourably our Q2 2015 results by 14.4%,” said Ori Yehudai, President and CEO of Frutarom. “We are very pleased with the ongoing trend of profitable growth and sustained improvement in Frutarom’s performance which have contributed to achieving another record setting quarter in revenues and net profit. The quarter results reflect the continued successful implementation of our rapid and profitable growth strategy, a strategy combining profitable internal growth – at rates above the growth rates in markets where we operate – with strategic acquisitions. We continue growing our market share in desired regions and countries, along entering new fields such as of natural colours and natural food preservation and protection solutions and further strengthened our activity in the field of specialty citrus. Continued organic growth and the contribution from the acquisitions, along with the measures we are taking to optimize the utilization of our resources, have propelled Frutarom in another major leap forward in its competitive positioning as a leading global player in the fields of Flavours and Specialty Fine Ingredients.”

“As part of the implementation of this strategy, we are continuing to work at expanding our scope of sales and market share considerably. Frutarom’s sales growth in the first half of 2015 reached 5.4% on a currency-neutral pro-forma basis. Successful integration of the six acquisitions we carried out in 2013-2014, expansion of our activity and market share in emerging markets exhibiting higher growth rates, as well as deepening our activity in the United States combined with our product mix, with emphasis on a natural and healthy product portfolio, contribute to the acceleration of growth.

“Since the beginning of the second quarter we acquired 5 companies with cumulative annual sales of US$ 97 M. They are already fully included in the balance sheet, but their full contribution to sales and profits will start showing only in the third quarter. Those acquisitions, combined with the organic growth, contribute to the expansion of our activities, while balancing our geographic spread between growing emerging markets and developed markets, with emphasis on Western Europe and the US (the world’s largest market for flavours).”

“As part of the action we are taking to expand our global presence, we strengthen our activity in Asia-Pacific by the acquisition of Taura and accelerated our penetration to the growing markets of India and Africa by the acquisitions of Sonarome and the Indian activity of BSA. Construction of Frutarom’s new state-of-the-art plant in China, which features sophisticated laboratories for research, development and applications, has been completed. For the first time Frutarom will have the ability to develop and produce savoury flavours solutions locally. The plant is currently in its run-in stages and we are convinced it will contribute to the growth of our activities in China and South East Asia, important key target markets for growth and for leveraging our competitive advantages.

“The organic growth and acquisitions, together with continuing improvement in our product mix, geographic expansion in emerging markets and the United States, and measures being taken to optimize the utilization of resources at our disposal, combined with the many inherent cross-selling opportunities and operational savings they present, along with the building of a global purchasing platform, and future strategic synergetic acquisitions pipe line, will support the continuation of our campaign for profitable growth in the years to come as well, and attaining the goals we recently set of reaching at least US$ 1.5 billion in sales and an EBITDA margin in our core activities of over 22% by 2020.”