Turpaz Industries published its financial reports for the first quarter of 2023 in which record results were recorded in sales, gross profit and adjusted EBITDA.
Turpaz's revenues in the first quarter of 2023 grew by 12.8% and amounted to a sales record of $30.9 million compared to sales of $27.4 million in the corresponding quarter last year. The increase is due both to organic growth at a rate of 1.6% (neutralized currency effect) on a proforma basis and to the acquisitions of companies and activities completed from 2022 until the date of publication of the report.
Broken down by sectors, the revenues from the activities of the fragrances sector grew by 33% to $8 million dollars compared to the corresponding quarter last year. Of these, organic growth of 15% (currency neutral). Revenues from the taste segment climbed by 22.3% to $16.1 million with organic growth at 5.1% (currency neutral).
Revenues from the unique raw materials segment totaled $6.8 million, a decrease of 17.2% compared to the corresponding period last year, which is mainly due to destocking trend among segment’s customers. Analysts in the field believe that this trend will end already in the second half of 2023.
The gross profit of the Turpaz Industries group in the first quarter of 2023 recorded a record high and grew by 10.4% to $11.8 million dollars compared to a gross profit of $10.7 million dollars in the corresponding quarter last year. A record high was also recorded in the adjusted EBIDTA which increased by 4.4% and amounted in the first quarter of 2023 to $6.6 million dollars compared to $6.3 million dollars in the corresponding period in 2022.
The operating profit amounted to $4.2 million dollars in the first quarter of 2023 compared to $4.6 million dollars in the corresponding period last year, while the net profit amounted to $3 million dollars, compared to $4 million dollars in the corresponding period last year. The main reasons for the decrease are higher depreciation expenses and one-time income from taxes recorded in the corresponding quarter.
Karen Cohen Khazon chairman and CEO of Turpaz Industries shared, "Turpaz presented another quarter of record results that are reflected in both revenues, gross profit and the adjusted EBIDTA, and this despite inflationary pressures resulting from the increase in the prices of raw materials, energy prices and manpower costs. Turpaz strengthened and expanded its global management in order to support the group's global growth strategy and leverage the synergies between the group’s companies. We continue to work to acquire additional companies to support the growth strategy, based on organic growth and synergistic acquisitons and mergers for the group's activities. We are currently in an excellent position for this with a solid capital structure, low leverage and a cash fund of $17 million dollars."