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Driven by sales gains in its flavor segment, the merger of CH Savory activities and specialty fine ingredients, Frutarom (Haifa) has reported second quarter 2010 sales of $114.3 million, an increase of 10% year-over-year. Net profit for the period totaled $13 million. In the first half of the year, company sales totaled $227.7 million, a gain of 10% year-over-year.
Of the results, president and CEO Ori Yehudai said, "We are satisfied by the continued positive trends expressed in the further achievement of organic growth while materially improving profit and margin which hit this quarter record levels. We witness fine results from the further improvement of our product mix and from the steps we took to strengthen and improve Frutarom's competitiveness and strengthen its operational efficiency. These steps contributed to the material increase in the rates of gross margin, operating margin and net margin and to a material increase of our net profit in the quarter and the first half of the year. The company's strong capital, its low debt level and the positive cash flow it generates, will enable us, combined with support from leading banks, to continue and implement acquisitions. We will decisively continue to act to implement our rapid growth strategy which combines organic growth and strategic acquisitions and the two together will allow us to again double our sales turnover in the next four years, to approximately $1 billion."