Frutarom (Haifa, Israel) presented its 2011 first quarter results, reporting record results in Q1 2011 in gross profit, operating profit, EBITDA, net profit, and earnings per share compared to Q1 in previous years.
The company announced 6.7% revenue growth over Q1 2011, reaching $121 million, as compared to sales of $113.5 million in the same quarter last year. This was characterized by strong growth as a result of the recovering global economy and the resulting restocking trend, and sales growth derived mainly from the company’s core activities (flavors and specialty fine ingredients) and from the contribution of the two successful acquisitions completed during the quarter.
Gross profit in Q1 2011 increased by 5% reaching a record $45.7 million, and the company’s operating profit for the quarter totaled approximately $16.6 million. EBITDA in Q1 2011 increased to approximately $21.5 million, and net profit in this period increased by 18.2% and reached a quarterly record of $13.1 million, resulting in an earnings per share in Q1 2011 up 18.2% to reach a Q1 record of $0.23 per share.
Ori Yehudai, Frutarom’s president and CEO, commented, "We are satisfied by the continued growth achieved in Q1 2011 and believe that it will persist during 2011. In recent months, we have witnessed a global trend of raw material price increase, including in many 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 influences on the results of our activity including by adjusting the selling prices of affected products.
"In Q1 2011, we completed the acquisitions of the savory activity of Norwegian company Rieber & Søn and of the assets and activity of UK company EAFI. These acquisitions are synergistic with our activity, expanding our customer base and product portfolio and allowing us to better provide comprehensive and high-quality solutions and meet the demands of our diverse customers. Frutarom's solid capital structure, has been supported by the strong cash flow achieved in the last two years, significantly contributing to the reduction of debt; combined with the strong support of leading financial institutions, it will allow us to continue implementing persistently our rapid growth strategy, combining organic, profitable growth and strategic acquisitions. We are acting to further realizing our excellent acquisition pipeline, both in developed markets such as the US and Europe and in emerging target markets in Asia, Central and South America, and Eastern Europe. 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."