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Iberchem Reveals 19% Growth Through Fiscal 2019 Financials

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Iberchem's financial results for Fiscal 2019 revealed a 19% growth in net sales and the company anticipates future growth following the close of two flavor company acquisitions.

Iberchem Group has announced its Fiscal 2019 full year results, closing the year outperforming the initial objectives set out in its annual budget and reported net revenues of €174 million, a net increase of 19%.

Related: Iberchem Reports 2018 Financials

Throughout the year, Iberchem has successfully registered strong top-line growth and maintained a positive business momentum. Augmenting its value in all of its geographic segments and categories, the company has increased its profitability.

The company has demonstrated the strength of its fundamentals, representing a unique value proposition for its customers, suppliers, employees and shareholders.

Once again, Iberchem Group increased its CapEx program: last October, it completed the construction of its new R&D center at its head office, adding more than 3,000 square meters to facilities dedicated exclusively to fragrance technologies.

Iberchem also fully revamped the production plant of its flavor unit in Spain, expecting to increase its flavor offerings by almost 40%.

Double Acquisition For Flavor Division

Also, Iberchem announced the completion of the acquisition of Flavor Inn Corporation and Duomei, two flavor companies located in Malaysia and China, respectively. The terms of the transaction were not disclosed.

These transactions come as the latest effort in Iberchem’s merger and acquisition strategy initiated last year with the purchase of South Africa’s Versachem. It brings Iberchem’s number of acquisitions to three, since the company began its financial relationship with European private equity firm Eurazeo in 2017.

“We are pleased to welcome Duomei and Flavor Inn within the Scentium family,” Iberchem Group CEO Ramón Fernández said. “This announcement represents another key step in the strategic expansion of Scentium (the flavor division of the Iberchem Group) in Asia, and also in the roll-out of our M&A strategy at a Group level. We are confident that both companies will add value and expertise to our existing flavor offer in China and Southeast Asia. Both Duomei and Flavor Inn share Scentium’s customer-centric culture and values. We are expecting a smooth integration of their activity into our organization in the upcoming year.”