Turpaz Industries Ltd. reported its financial results for the first half of 2021, which includes record sales, increased revenue and an increase in gross profit, operating profit, EBITDA and net profit.
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Revenue
Revenue in the first half of 2021 grew by 75.4% to a peak of 39.4 million dollars, compared to revenue of $22.5 million in the same period last year. Revenues from organic growth neutralized by currencies increased by 18.7%.
Fragrance activities revenue grew by 37% and peaked at $9.6 million, compared to revenues of $7 million in the corresponding period last year.
Flavor activities revenue grew by eight times and peaked at a high of $13.2 million, compared to revenues of $1.5 million in the corresponding period last year.
Revenues in the segment of intermediate materials for the pharma industry resulted from organic growth neutralized by the effect of currencies at a rate of 50.5% and peaked at $9.5 million, compared to revenues of $6.3 million in the corresponding period last year.
Revenues in the segment of unique raw materials amounted to $7.1 million, compared to revenues of $7.7 million in the corresponding period last year.
Profit
Turpaz's gross profit increased in the first half of 2021 by 66.9% and peaked at $15.8 million compared to $9.4 million in the same period last year.
Operating profit in the first half of 2021 grew by 91.8% and peaked at $8 million (20.3% of total revenue) compared to $4.2 million (18.6% of total revenue) in the same period last year. Adjusted EBITDA grew by 72% and amounted to $9.8 million (25.0% of total revenues) compared to $5.7 million (25.5% of total revenues) in the corresponding period last year.
Fragrance activity operating profit grew by 79% and amounted to a peak of $3.6 million (37.5% of total revenues) compared to an operating profit of $2.0 million (28.7% of total revenue) in the corresponding period last year.
Flavor activities operating profit amounted to $800,000 (6.0% of total revenues) compared with operating profit of 60,000 dollars (3.9% of total revenues) in the corresponding period last year.
Operating profit in the intermediate materials segment for the pharma industry increased by 112% and amounted to a peak of $3 million (31.1% of total revenues) compared to $1.4 million (22.1% of total revenues) in the corresponding period last year.
Operating profit in the segment of unique raw materials in the world increased by 24.4% and amounted to $2 million (27.8% of total revenues), compared to operating profit of 1.6 million dollars (20.7% of total revenue) in the corresponding period last year.
Net profit in the first half of 2021 in the world grew by 94.3% and amounted to a record of $6.3 million (16.0% of total revenues) compared to $3.2 million (14.5% of total revenue) in the corresponding period last year.
The company's cash balance and net cash value as of June 30, 2021, was $46.8 million compared to a net debt balance of $17.3 million at the end of 2020.
Karen Khazon, chairperson and CEO of the Turpaz Group, said, "We are pleased to report record results for the first half of 2021 in revenue, EBITDA and net profit. Turpaz offers a unique and complete range of solutions for customers that includes flavor extracts, both sweet and savory, fragrance extracts, unique raw materials for the pharma industry, delicate and unique chemicals with high added value and more. One of the advantages of Turpaz is the ability to leverage the synergy between the various sectors which gives a continuous competitive advantage."
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