Naturex reverses downward trend

8 Feb 2016

Naturex has delivered sales of €397.8 million for the year, up 21.5%. Organic growth also registered gains of 5%, compared to a decline of 4.3% in 2014, while Vegetable Juices Inc. sales for the first five months represented 4.7%.

Naturex reverses downward trend

Naturex has delivered sales of €397.8 million for the year, up 21.5%. Organic growth also registered gains of 5%, compared to a decline of 4.3% in 2014, while the consolidation scope effect from Vegetable Juices Inc. sales for the first five months represented 4.7%. The positive exchange rate effect of 11.8% for the year, linked primarily to the dollar's rise relative to the euro, allowed the company to leverage its presence in the United States and to increase the share of its revenue in US dollars.

2015 fourth-quarter revenue reached €100.8 million up 13.3% from the same period in 2014, including 5.0% from organic growth and 8.3% from the exchange rate effect.

The Food & Beverage division had revenue of €253.8 million, up 19.0% for the for the year. This included a €18.5 million consolidation scope effect from Vegetable Juices Inc. sales for the first five months of 2015.

Like-for-like (constant currency and structure), sales were largely stable (+0.1%), reflecting the combined effects from significantly reducing the share of so-called "commodities" products, the optimisation of the product mix, and the targeted rationalisation of low margin product references.

In the 2015 fourth quarter, revenue came to €64.0 million, highlighting positive momentum for growth of 10.5% compared to the same quarter in 2014. Like-for-like (constant structure and currency), revenue growth was up 2.4%.

Nutrition & Health achieved very strong growth of 27.3% with annual revenue of €124.1 million for 2015. 2015 fourth-quarter revenue maintained the momentum of the preceding quarters with growth of 20.8% to €33.0 million compared to the 2014 fourth quarter.

Repositioning the nutraceutical offering beyond the traditional market of dietary supplements initiated at the end of 2014 in favour of phytoactives with clinically-substantiated benefits and concepts combining nutritional and health properties benefits within differentiating formats has made it possible to capture new segments. In addition, Naturex's expertise in sourcing, traceability and quality control for its raw materials has bolstered our established position among major market players.

"With 2015 marking a return to healthy and solid organic growth for all Group businesses, we are proud of the progress achieved by all teams in rigorously executing the Conquest, Cash & People plan in barely one year,” said Olivier Rigaud, Chief Executive Officer and Director of Naturex.

"In 2016, our efforts will focus on our four key product categories that offer significant growth potential over the long-term: natural colours, natural antioxidants, phytoactives, and fruit & vegetable-based specialty ingredients. With a reorganised sales management structure that is now fully operational, our priority going forward is to further strengthen our positions in Europe and North America in the Key Account segment and accelerate our growth in emerging countries. To achieve these goals, we must concentrate on optimising our industrial capacities and streamlining our operating model. On this basis, I am confident in our ability to meet the five year targets set for organic growth and profitability in our Bright2020 strategic plan."