Naturex reports “very robust” performance

Naturex has reported what it describes as a “very robust” performance in the first quarter, with revenues up 23.9% from €79.603 million to €98.502 million. At constant exchange rates, the increase was 12%. Food and beverage revenues were up 28.1%, with nutrition and health growing 13.3%. Food & Beverage had revenue of €63.1 million, with strong 15.9% […]

Naturex has reported what it describes as a “very robust” performance in the first quarter, with revenues up 23.9% from €79.603 million to €98.502 million. At constant exchange rates, the increase was 12%. Food and beverage revenues were up 28.1%, with nutrition and health growing 13.3%.

Food & Beverage had revenue of €63.1 million, with strong 15.9% growth at constant exchange rates, and a substantial contribution from Vegetable Juices Inc. (€9.6 million at constant exchange rates). For the historical group structure, sales were impacted by a high comparison base as well as continuing sluggishness in Europe, whereas in the United States the shift in favour of natural foods is being pursued actively, notably for colouring and preservatives. In addition, the creation of new concepts within Naturex’s application laboratories (SpringLabs), notably for the “Colours”, “Fruits & Vegetables” and “Quillaia” ranges will facilitate the acquisition of new customers and boost sales for this business in the coming months, the company said.

Organic growth of 1.1% for Nutrition & Health confirms the first positive effects of the plan rolled out at the end of 2014 for recapturing growth in the United States by adopting a commercial approach targeting the company’s historic customers for selected plant extracts; an expanded offering of products with clinically substantiated benefits, notably Pacran (Cranberry extracts promoting urinary track comfort); and establishing a position in growth markets by introducing innovative concepts based on a convergence of nutrition and health.

These measures will not produce their full effects in terms of growth and profitability until the second half of 2015, Naturex said.

Sales in Europe/Africa were down 2.4%, but the Americas saw growth of 56.4% (31.9% at constant exchange rates). Asia/Pacic grew 23.9% (12.9%).

“The year has gotten off to a very encouraging start: organic growth has stabilised after four consecutive quarters of decline in 2014. Recently acquired Vegetable Juices Inc. is continuing to perform very well and we are benefiting from a more favourable foreign exchange environment,” said Olivier Rigaud, Naturex’s Chief Executive Officer and member of the Board.

“By geographic region and by business, performances were nevertheless mixed: in the United States, momentum is positive for Food & Beverage and Nutrition & Health’s gradual recovery is back on a positive track with organic growth; Europe in contrast remains a major focus of attention where we will apply the same measures as in the United States; our initiatives in emerging countries will allow us to strengthen our positions over the year.”

“With these achievements of the first quarter, I am confident in our ability to pursue development and to build solid foundations for sustainable growth. In the meantime, our teams throughout the world are focused on implementing our 2015 ‘’Conquest, Cash & People” action plan. With operating expense cost control measures and the redeployment of personnel as priorities, the effects of these efforts on margins will be visible starting in the 2015 first half.”