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Frutarom Posts Record Results for 2010
Posted: March 24, 2011
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Earnings per share in 2010 increased sharply by 32.6% and reached a record level of US $0.77 per share compared to US $0.58 per share in 2009. Earnings per share in Q4 2010 increased by 17.9% and reached a Q4 record level of US $0.15 compared to US $0.13 per share in the same quarter last year.
Ori Yehudai, Frutarom’s president and CEO, summarized the results in saying, "2010 was a year of growth in Frutarom's sales and a record year in profit and margin. This year was characterized by a return to growth in the global economy in general, and in the food, flavors and specialty ingredients industries in particular. Frutarom is continuously accelerating its penetration into emerging markets, which are characterized by a high growth rate and increasing demand for the company’s products, while continuing to grow in traditional markets. We had preemptively identified the trend towards health products and convenience foods, and we were wise to integrate them into the company's product offering; this allowed us to achieve a marketing and competitive advantage that will ensure the continued long-term growth of the company.
"In recent months, we have witnessed a global trend of increased prices of raw materials, including some of the raw materials used by Frutarom in the manufacture of its products. We have acted determinedly, and shall continue to do so as long as this trend prevails, to prevent future effects on the results of our activity including by adjusting selling prices of affected products. We are constantly acting to expand our sources of supply and optimally use the diverse capabilities of Frutarom's production sites worldwide.
"Upon the recovery of the mergers and acquisition market from the effects of the global economic crisis during 2009, we have restarted in recent months to implement acquisitions and acquired the savory activity of Rieber & Son from Norway and the assets and activities of EAFI in the UK. These two acquisitions, as well as previous acquisitions we implemented in 2009, are synergetic with our activities, expand our customer base and our product mix and enable us to offer our diverse customer a high-quality and comprehensive solutions to their demands. Frutarom strives for realizing its excellent acquisitions pipeline and will put a greater emphasis on acquisitions in the growing, target markets of Asia, Eastern Europe, Central and South America, alongside acquisitions in traditional markets such as North America. Alongside the acquisitions, we will continue to act for achieving profitable, organic growth, to achieve our goal and again double our turnover within the next four years," he concluded.