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Frutarom Q2 Sales and Profit Drop, Despite Acquisitions
Posted: August 27, 2009
Frutarom’s (Haifa, Israel) sales for the second quarter of 2009 totaled $106.7 million, dipping 5.5% in local currency terms compared to the second quarter of 2008, while its net profit for the period reached $10.1 million (2008: $12.0 million). Strengthening of the US dollar and ongoing inventory reduction affected the company’s performance.
Meanwhile, expense reduction and efficiencies helped the company improve its net profit margin to 9.5%, compared to 9.1% in the same quarter last year. The three combined acquisitions Frutarom instituted in 2009—Oxford in the United Kingdom, FSI in the United States and the savory activities of Chr Hansen in Germany—contributed approximately $5.6 million to the sales in the second quarter, and $9.1 million in the first half of the year.
“We consider this a challenging and complex period … an opportunity for further strengthening,” said Ori Yehudai, president and CEO of Frutarom. “We are convinced that we will be able to achieve our goals and double Frutarom's turnover again in the next 4 years, so that it will reach US $1 billion by 2012.”