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Frutarom Q1 2008 Results
Posted: May 21, 2008
Frutarom (Haifa, Israel) has reported first quarter 2008 sales of US$ 122 million, an increase of 51.6% over the same period 2007. Gross profit for the quarter totaled US$ 44.8 million, a growth of 50.2%, while operating profit grew 47.8% to reach US$ 15.3 million. Net profit grew by 27.3% to reach a quarterly record of US$ 9.7 million.
Raising Frutarom’s selling prices and adjusting them to the increased prices of raw materials used in the company’s production contributed to the improvement in Frutarom’s profitability compared with the last three quarters of 2007. Additionally, the company’s sales growth can be contributed to: organic growth in sales of flavors produced and sold by the flavors division; organic growth in the fine ingredients division’s sales; the merger of Acatris's and Abaco's activities with the fine ingredients division's global activities; the merger of Belmay's and Jupiter's activities with the flavors division's activities in England; the merger with the flavors division's activities in Israel of Raychan's, Adumim's and Rad's activities; the merger of the Gewurzmuller Group's activities with the flavors division's activities in Germany; strengthening of the West European currencies (in which most of Frutarom's sales are made) against the US dollar; and growth in Frutarom's trade and marketing activity in Israel.
Of the results, Frutarom president and CEO Ori Yehudai said, “The results that we achieved in the first quarter reflect the successful continuation of our strategy for rapid growth. During the quarter we attained considerable growth in our sales, consisting of double digit growth in core activities and the contribution of the seven acquisitions made in 2007, which were successfully merged and consolidated with our global activity. During the last three quarter of 2007 these acquisitions added to sales but, as expected, did not contribute to profit and even had a slight adverse affect on profitability. This year, with most of the merger and consolidation processes relating to the acquired companies completed, Frutarom is enjoying considerable growth in sales and substantial improvement in profit and profitability."