News

Frutarom raises 2020 sales target to $2.25 billion

24 Nov 2017

Frutarom has reported that its sales run-rate is now approaching $1.5 billion, and has raised its target for 2020 to $2.25 billion. In the third quarter, sales grew by 19.6% to a record $358.8 million.

Frutarom has reported that its sales run-rate is now approaching $1.5 billion, and has raised its target for 2020 to $2.25 billion. In the third quarter, sales grew by 19.6% to a record $358.8 million, with flavours growing 21.3% to $272.9 million.

Gross profit grew by 19.6% to $140.0 million, while EBITDA grew by 23.3% to $73.8 million.

Net income grew by 22.3% to $43.0 million.

“We are pleased with the results achieved in the third quarter and the first nine months of 2017 in which we again set ourselves new records in sales, profits and cash flows,” said Ori Yehudai, President and CEO of Frutarom. “The results reflect the successful implementation of the rapid and profitable growth strategy in our core businesses, Flavors and Natural Specialty Fine Ingredients, combining profitable internal growth at higher growth rates than those of the markets in which we operate, together with the successful merger of the strategic acquisitions we have made which are contributing to the continuing and consistent improvement in our results.”

“Following the accelerated internal growth and ten acquisitions made since the beginning of 2017, Frutarom’s run rate in sales is approaching US$1.5 billion. After examining our strong competitive position, accelerated rate of internal growth, our latest acquisitions, our pipeline for future acquisitions and the contribution of the streamlining and global procurement activity, we are raising our target sales for 2020 to US$ 2.25 billion and EBITDA margin from our core businesses to 23%.”

“The accelerated internal growth rates in recent years and our optimism concerning the continued realization of high future profitable growth is due to the continuing implementation of our strategic plan which includes continuing focus on six key areas: (1) continued improvement in the product mix with continued rapid growth in both our flavors activity and our specialty fine ingredients activity, while focusing on unique and innovative natural products that combine taste and health and address the current and future preferences of billions of consumers throughout the world; (2) developing and furnishing unique added value solutions to our large multinational customers while providing our local, medium-sized and private label customers a full and comprehensive portfolio of solutions in the areas of taste and health; (3) capitalizing to the utmost on the many cross-selling opportunities between our varied activities to which are also contributing the acquisitions we have and will carry out; (4) continued improvement to margins and profits by exploiting our resources to the fullest, following the acquisitions as well, with the generating of significant operational savings and the strengthening of our global procurement and supply chain platform; (5) continued improvement of our geographic sales mix by significantly increasing the percentage of sales in North America and in the growing emerging markets; and (6) building global market leadership in natural herbal extracts while adopting a vision that includes global collaborations with research institutes and growers for developing strains and crops of strategic natural raw materials in taste and health to ensure quality and competitive supply of raw materials and supporting the stepping up among our customers in switching from the use of raw materials that are synthetic to those that are natural.”