Frutarom's Q3 sales show an increase of 28% from 2015 and reported $300 million in revenue. This resulted in gross profits growing 24% to $144 million. Recent acquisitions and improvement to activities in production sites have been contributing factors to the company's overall growth.
Acquisitions in Latin America
Frutarom has acquired eight companies in 2016. Among their most recent acquisitions was Brazilian company Nardi Aromas, a company that specializes in natural Brazilian flavors.This follows their recent strategy to grow in Latin America. In 2012, Frutarom acquired Brazilian company Mylner and Guatemalan company Aroma. Then in 2014, Frutarom acquired the natural flavors and colors division of Montana in Peru.
Cost-cutting and Streamlining
In addition to Frutarom’s efforts to expand in Latin America, they have also invested in streamlining their savory operations in Europe and operations in the specialty fine ingredients division, resulting in an estimated 18 million in annual savings.
These activities are all in-line with Frutarom’s goal of reaching $2 billion in sales by 2020. Ori Yehudai, president and CEO of Frutarom, said, “The projects for combining and consolidating activities and production sites and toward achieving utmost efficiency are proceeding successfully.”
