News

Naturex: revenues up, profits down

22 Sep 2015

Naturex has announced a 28% increase in its first half revenues to €202.6m, with gross margin 14.5% ahead. Net income attributable to the group was, however, off 61.3% to €2.9 million. The company said that it implemented its plan in 2H15 to regain commercial momentum by applying a targeted customer approach and a stronger offering […]

Naturex has announced a 28% increase in its first half revenues to €202.6m, with gross margin 14.5% ahead. Net income attributable to the group was, however, off 61.3% to €2.9 million.

The company said that it implemented its plan in 2H15 to regain commercial momentum by applying a targeted customer approach and a stronger offering of products and innovative concepts within strategic market categories. This, it said, contributed to a return to organic growth (+4.5%) with sales stabilising for the historical group structure by the 2015 first quarter, after four consecutive quarters of decline and followed by a strong acceleration in the second quarter (+9.0%)

The Group also benefited from a particularly favourable currency effect resulting from the strong contribution of US dollar sales.

Naturex noted that it had taken a number of exceptional actions and incurred exceptional costs during the half year in support of its realignment, including significant de-stocking, and these had meant that the improved gross margin had not dropped through to the bottom line.

“Operational and financial discipline measures taken over the first six months through the Conquest, Cash & People plan represent a first step in our Group’s transition to a model for sustainable, lasting and profitable growth over the medium-term. As previously indicated, our priority in the second half will be improving operating profitability. By pursuing solid and dynamic growth, we will be able to activate the operational drivers necessary for achieving this objective,” said Olivier Rigaud, Chief Executive Officer and Director of Naturex.

“In terms of governance, after reinforcing the Management Committee in the first half by the addition of the Human Resources Director and the Chief Legal Officer, our Senior Management team will be completed in early November by the arrival of a new Chief Financial Officer.”