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Frutarom Announces Q3, First Nine Months 2010 Financial Results
Posted: November 16, 2010
Frutarom (Haifia, Israel) announced its financial results for the third quarter and the first nine months of 2010, reporting an increase of 11.1% in net profit in Q3 2010, totaling US$11.1 million, compared to a net profit of US$10 million in Q3 2009. Also, Frutarom's net profit margin reached approximately 10% of the company's total revenues in Q3 2010, compared to a net profit margin of approximately 9% in the same quarter last year. The continued implementation of its rapid and profitable growth strategy contributed to the increase in sales and to the improvement in margins.
Frutarom's net profit in the first nine months of 2010 increased by approximately 37.2%, reaching approximately US$35.3 million compared to a net profit of approximately US$25.7 million in the same period in 2009. Additionally, Frutarom's revenues in Q3 2010 totaled US$111.0 million, an increase of 4.8% in local currency terms compared to Q3 2009, and its revenues in the first nine months of 2010 totaled US$338.7 million, an increase of approximately 8.2% in local currency terms compared to the first nine months of 2009, which totaled US$316.7 million. In US dollar terms, Frutarom's sales increased by approximately 6.9% compared to the first nine months of 2009.
The increase in sales in the third quarter and the first nine months of the year results mainly from growth in Frutarom's core activities—its flavor and specialty fine ingredients segments. The sales increase is also represented by a successful penetration of new, primarily natural, products with higher-than-average margins, which have been developed by the company in recent years.
Ori Yehudai, Frutarom's president and CEO, commented, "We are satisfied by the continued positive trends expressed in the continued achievement of internal growth while materially improving profit and margin, which hit record levels also this quarter. We continue to witness fine results from the improvement of our product mix and from the steps we have taken to strengthen and improve Frutarom's competitiveness and operational efficiency. We intend to keep growing in the main regions in which we operate and accelerate the growth in emerging markets, including Asia, Central and South America and Africa, which enjoy higher growth rates, and in North America, so that the market share of our sales, outside of Europe, will exceed 50% of our total sales within the next four years. We will act to accelerate growth in these markets by focusing on the strengthening of our research & development, production, marketing and sales infrastructures in important target countries and while exploring options for strategic acquisitions also in these markets.”
Additionally, Yehudai said, “We continue to act for the execution of strategic acquisitions and for the implementation of our rapid growth strategy, which combines internal growth and acquisitions. This combination will allow us to again double our sales turnover within the next four years, to approximately US$1 billion. Our strong capital, low net debt level and strong cash flow, along with the support of leading banks, will allow us to continue and implement acquisitions."