Frutarom earnings rise 3% on acquisitions
May 30, 2012
by Eric Schroeder
HAIFA, ISRAEL — First-quarter earnings at global flavor and ingredients company Frutarom Industries Ltd. rose 3% to $13.5 million, up from $13.1 million in the same period a year ago. Sales increased nearly 28% to $151.2 million from $121 million in the first quarter of fiscal 2011.
Operating profit was a first-quarter record of $17.8 million, which compared with $16.6 million a year ago.
“This quarter we continued our successful implementation of our rapid growth strategy, combining internal growth with acquisitions, again recording quarterly highs for the company,” said Ori Yehudai, president and chief executive officer. “Record highs were achieved in gross revenues, EBITDA and net profits.
“After seven acquisitions in 2007, and three in 2009, all of which have been successfully integrated with Frutarom’s global activities and contribute to both a growth in sales and improved margins, we continued to implement strategic acquisitions and completed five acquisitions in 2011 and an additional three at the beginning of 2012. The scope in revenues from the last eight acquisitions made, based on 2010 figures, stood at $145 million. The acquisitions, whose value is yet to be fully reflected in the outcomes of our operations, are in advanced stages of integration and support our expanding global reach. These acquisitions have deepened our presence in developed markets as well as in emerging markets where growth rates are higher than the global average and expanded our customer base throughout the world, and the unique and diverse product portfolio we can offer our customers.”