Frutarom reports 18.8% sales growth for record year22 Mar 2018
Frutarom has announced what it says is another record year, with sales growing by 18.8% to $1,362.4 million. Sales from the Flavors activity grew by 21.1%, while sales from Natural Specialty Fine Ingredients grew by 14.2%.
Frutarom has announced what it says is another record year, with sales growing by 18.8% to $1,362.4 million. In 2017, Frutarom carried out 12 strategic acquisitions, and two additional ones have taken place already in 2018. Sales from the Flavors activity grew by 21.1% to a record $1,025.4 million, while sales from Natural Specialty Fine Ingredients grew by 14.2% to a record $260.1 million. Gross profit grew by 20.0% to $525.1 million, and EBITDA grew by 33.9% to $259.6 million. Net income grew by 36.5% to $151.6 million;In 4Q17, sales grew by 23.7% to a record $357.5 million, with sales from Flavors activity growing by 29.8% to a record $278.9 million. Sales from Natural Specialty Fine Ingredients grew by 11.2% to $9.9 million"We are pleased with our significant step forward and the results achieved in 2017, in which we again set ourselves new records in sales, profits and cash flows,” said Ori Yehudai, President and CEO of Frutarom Group “In the past four years, we've managed to once again double Frutarom's revenues and profits, a result which reflects the successful implementation of the rapid and profitable growth strategy, combining profitable internal growth at higher growth rates than those of the markets in which we operate, together with the strategic acquisitions we have made which are contributing to the continuing and consistent improvement in our results.”"The accelerated 19.1% growth in our core activities in 2017, is a result of the continued rapid organic growth of our Flavors activity at an annual rate of 7.2%, and a quarterly rate of 10.2%4 and our Specialty Fine Ingredients activity at an annual rate of 11.8%4 and the contribution of the strategic acquisitions we have carried out and merged successfully.”"Following the 8 acquisitions we carried out in 2016, we made 12 more acquisitions in 2017, and two additional ones since the beginning of 2018, and we are successfully progressing with the plans for their full merger and integration. We are constantly working on establishing a robust and top quality pipeline of future acquisitions, which support the realization of our plans for rapid growth in our core business activities, while expanding the share of the Flavors activity, which includes establishing market leadership in Savory Solutions and expanding the portfolio of natural solutions we offer our customers in flavors, health, colors and natural antioxidant activities, and accelerating our growth and expanding our market share in North America and emerging markets with high growth rates.”"In addition, we've expanded and deepened our activity in the field of Natural Specialty Fine Ingredients for infant nutrition and clinical elderly nutrition through the acquisition of Enzymotec, whose merger process is progressing successfully and the impressive growth rate of its core products continues. We've also expanded our activity in the growing field of Natural Specialty Fine Ingredients for cosmetics and personal care through the acquisition of IBR at the beginning of 2018.”"We are proceeding with our plan to establish global market leadership in natural herbal extracts, as we adopt a vision of embracing global collaborations with research institutes and farmers for the development of varieties and crops of strategic natural raw materials for flavors, colors, health, and cosmetics, which will support our customers' accelerated transition from synthetic to natural fine ingredients.”"Frutarom continues to carry out its plan of developing global activity in the field of fragrances with an emphasis on emerging markets with high growth rates through the acquisition of Turpaz and Pollena Aroma in 2017, and Meroar from Argentina in 2018, which have all joined Frutarom's smaller existing businesses in the field of fragrance extracts, especially in India, Africa and Latin America. We intend to further develop this important activity, among other things, by a pipeline of acquisitions that will accelerate our penetration and expand our activity in Fragrances.” "Frutarom started 2018 as a growing company with a turnover exceeding US$ 1.5 billion with strong and experienced management, which we are constantly building up, with a global organization operating in over 150 countries, based on a production infrastructure of 73 plants and 90 research and development labs, 110 marketing and sales offices, approximately 5,600 employees, out of them over 1,000 in marketing and sales, and over 600 in R&D, catering to, and maintaining close daily contact with, over 30,000 customers (12,000 of which have joined us through the 39 acquisitions we've carried out in the past 5 years), with a broad and innovative product portfolio that places an emphasis on natural products at the interesting cross section of flavor and health, with a customer focus that gives Frutarom a substantial competitive edge, with local and medium sized producers and the private label manufactures (constituting more than 70% of Frutarom's customer base) growing at a faster rate than the large MNC's.”