Accessibility Statement Skip Navigation
  • Resources
  • Blog
  • Journalists
  • +44 (0)20 7454 5110
  • Client Login
  • Send a Release
Return to PR Newswire homepage
  • News
  • Products
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All Public Company News
      • All Multimedia News
      • View All News Releases

      • Regulatory News

      • D/A/CH Regulatory News
      • UK Regulatory News
      • View All Regulatory News

  • Business & Money
      • Auto & Transportation

      • Aerospace & Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads & Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking & Road Transportation
      • View All Auto & Transportation

      • Business Technology

      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • View All Business Technology

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film & Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Financial Services & Investing

      • Accounting News & Issues
      • Acquisitions, Mergers & Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalisation
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • View All Financial Services & Investing

      • General Business

      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls & Research
      • Trade Show News
      • View All General Business

  • Science & Tech
      • Consumer Technology

      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • View All Consumer Technology

      • Energy & Natural Resources

      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil & Gas Discoveries
      • Utilities
      • Water Utilities
      • View All Energy & Natural Resources

      • Environ­ment

      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • Aerospace & Defence
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation & Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking & Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • Carriers & Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • Animals & Pets
      • Beers, Wines & Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics & Personal Care
      • Fashion
      • Food & Beverages
      • Furniture & Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewellery
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film & Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Health

      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • View All Health

      • Sports

      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • View All Sports

      • Travel

      • Amusement Parks & Tourist Attractions
      • Gambling & Casinos
      • Hotels & Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • Animal Welfare
      • Corporate Social Responsibility
      • Economic News, Trends & Analysis
      • Education
      • Environmental
      • European Government
      • Labour & Union
      • Natural Disasters
      • Not For Profit
      • Public Safety
      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • View All People & Culture

  • Overview
  • Distribution
  • Paid Placement
  • Multichannel Amplification
  • Disclosure Services
  • SocialBoost
  • Rooms
    • MediaRoom
    • ESG Rooms
  • AI Tools
  • General Enquiries
  • Media Enquiries
  • Partnerships
  • Hamburger menu
  • Cision PR Newswire UK provides press release distribution, targeting, monitoring, and marketing services
  • Send a Release
    • Phone

    • +44 (0)20 7454 5110 from 8 AM - 5:30 PM GMT

    • ALL CONTACT INFO
    • Contact Us

      +44 (0)20 7454 5110
      from 8 AM - 5:30 PM GMT

  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists
  • News in Focus
    • Browse News Releases
    • Regulatory News
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
    • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists
  • Overview
  • Distribution
  • Paid Placement
  • Multichannel Amplification
  • Disclosure Services
  • Cision Communications Cloud®
  • AI Tools
  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists
  • General Enquiries
  • Media Enquiries
  • Partnerships
  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists

Frutarom Revenues for Q1 2012 Grew by 27.5% to a Quarterly Record US$151.2 Million


News provided by

Frutarom Industries Ltd

30 May, 2012, 05:52 GMT

Share this article

Share toX

Share this article

Share toX

HAIFA, Israel, May 30, 2012 /PRNewswire/ --

Eight acquisitions completed since the beginning of 2011 three acquisitions completed over the quarter

Gross profit reached a quarterly record high of US$54.9 M

Operating profit reached a first quarter record high of US$17.8 M

EBITDA  reached a quarterly record high of US$25 M

Net profit reached a quarterly record high of US$13.5 M

Cash flow from current activities reached US$17.7 M

Frutarom Industries Ltd. ("Frutarom") (LSE: FRUT, TASE: FRUT, FRUTF.PK), one of the ten largest flavor and fine ingredients companies in the world, reports record quarterly revenues for Q1 2012 after having broken the half billion mark in revenues for 2011. The company successfully continued implementing its rapid growth strategy and completed eight strategic acquisitions since the beginning of 2011, three of which were completed over the first quarter of 2012.

Frutarom's revenues for 2011 came to US$151.2 million, a 27.5% increase in local currency terms, compared to US$121 million in Q1 2011. Currency exchange rates detracted 2.6% from sales in dollar terms. The three acquisitions made over Q1 2012 contributed US$31.4 million from their dates of completion.  

Frutarom this quarter presented a significant leap forward in the Flavors Activity, the more profitable among Frutarom's activities, showing the highest growth both internally and reinforced by the acquisitions. Flavor sales in Q1 2012 increased by 39.4% in local currency terms, reaching record high of US$109 million. Currency exchange rates detracted 3.6% from sales in dollar terms.

Frutarom's Specialty Fine Ingredients sales in Q1 2012 reached US$37.5 million, a 3.3% decrease in local currency terms.  Exchange rates detracted 1% from sales in dollar terms. The decrease in sales was affected to a certain extent by the continued trend of inventory reduction among some of Frutarom's fine ingredients customers.

Since the beginning of 2011 Frutarom made eight strategic acquisitions which have strengthened  its position and increased its market share in developed markets, including in the US, the UK, Italy and Scandinavian countries as well as in the emerging markets in Latin America (Brazil), Central and Eastern Europe, Asia and Africa. Frutarom is continuously acting to successfully integrate the acquired companies in Frutarom's global operations, and to optimally utilize its many synergies and cross-selling opportunities resulting from the acquisitions made in during 2011 and over 2012.

The integration of research and development, procurement and production activities of the eight activities acquired in 2011 and during the first quarter of 2012 are progressing as planned and successfully, and their contribution to the increase in profits is expected to increase in the coming quarters as the integration process progresses.

Frutarom's gross revenues over Q1 2012 increased by 20.3%, reaching a quarterly record high of US$54.9 million (gross margin of 36.3%), compared to US$45.7 million (gross margin of 37.7%) in Q1 2011.

Gross margin for Q1 2012 was affected by the substantial rise in raw material prices which began during the second half of 2010 and increased over 2011. Frutarom has continuously acted with diligence in order to prevent future adverse effects on its results and margins, including by increasing prices of products, optimizing the potential to reduce raw material costs by strengthening global purchasing, utilizing the increased purchasing power generated due to recent acquisitions, strengthening procurement in its primary countries of production such as India, China and Brazil, employing harmonization of raw materials and maximally utilizing the diverse capacities of its many production sites throughout the world and its many operational synergies from its acquisitions over 2011 and 2012.

Operating profitfor Q1 2012 increased by 7.3%, reaching a first quarter record of US$17.8 million (11.8% of sales) compared to US$16.6million in Q1 2011 (13.7% of sales.

EBITDA in Q1 2012 reached a quarterly record high of US$25 million (16.5% of sales) compared to US$21.5 million during the same period last year (17.7% of sales).

Net profit for Q1 2012 reached a quarterly record high of US$13.5 million (8.9% of sales), compared to US$13.1 million in Q1 2011 (10.8% of sales).  

Cash flow from current activities reached US$17.7 million, compared to a cash flow of US$2.8 million in Q1 2011.

Frutarom's equity as of March 31, 2012 totaled US$413.6 million (52.5% of total assets), compared to US$380.1 million as of March 31, 2011 (68% of total assets).  The change primarily derives from increase in the period's net profit.  

Ori Yehudai, President and CEO of Frutarom, summarized the quarter, stating that "This quarter we continued our successful implementation of our rapid growth strategy, combining internal growth with acquisitions, again recording quarterly highs for the company. 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 US$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.

In the upcoming months we will continue to integrate sites and activities, to utilize the many streamlining opportunities and to realize the substantial cross-selling possibilities created by the acquisitions. At the same time we will continue to identify opportunities for additional strategic acquisitions in attractive target markets and in emerging countries.

A combination of the subsiding  global trend of sharp price increases for most raw materials, and the beginning of a fall in some raw material prices from the record highs of 2011, together with  the effect of adjusted prices for our products which we have implemented over the last few months, the  reduction of  raw material costs through stronger global purchasing and maximum utilization of the diverse capacities of our many production sites throughout the world and their many operational synergies following our recent acquisitions, which are in advanced stages of integration, alongside the continued realization of our strategy combining internal growth and acquisitions, will  bring about a further significant leap in Frutarom's sales as well as profits and margins".

About Frutarom

Frutarom (LSE: FRUT)(TASE: FRUT)(Reuters: FRUTF.PK) is a global company operating in the global flavor and fine ingredients markets. Frutarom has significant production and development centers in three continents and it markets its products in five continents to over 14,000 customers in more than 130 countries. Frutarom's products are intended mainly for the food, beverage, flavor, fragrance, pharmaceutical, nutraceutical, health food, functional food, food additives and cosmetic industries.

Frutarom, which employs approximately 2,100 people worldwide, has 2 main activities:

  • The Flavors Segment, which develops, produces and markets flavor compounds and food systems.
  • The Fine Ingredients Segment, which develops, produces and markets natural flavor extracts, natural functional food ingredients, natural pharma/nutraceutical extracts, specialty essential oils, citrus products and aroma chemicals.

Frutarom's products are produced in its plants in the US, UK, Switzerland, Germany, Israel, China, South Africa and Turkey. The Company's global marketing organization includes branches in Israel, the US, UK, Switzerland, Germany, Belgium, the Netherlands, Denmark, Norway, France, Hungary, Romania, Russia, Ukraine, Kazakhstan, Belarus, Turkey, Brazil, Mexico, Costa Rica, China, Japan, Hong Kong, India ,Indonesia and South Africa. The Company also works through local agents and distributors worldwide.

For further information, visit our website: http://www.frutarom.com.

Company Contact:
Ori Yehudai, President & CEO
Frutarom Ltd.
Tel: +972-9-9603800
Email: oyehudai@frutarom.com

Modal title

Contact PR Newswire

  • +44 (0)20 7454 5110
    from 8 AM - 5:30 PM GMT
  • General Enquiries
  • Media Enquiries
  • Partnerships

Products

  • Content Distribution
  • Multimedia Services
  • Disclosure Services
  • Cision Communications Cloud®

About

  • About PR Newswire
  • About Cision
  • Partnering Opportunities
  • Careers
  • Accessibility Statement
  • APAC
  • APAC - Simplified Chinese
  • APAC - Traditional Chinese
  • Brazil
  • Canada
  • Czech
  • Denmark
  • Finland
  • France
  • Germany
  • India
  • Indonesia
  • Israel
  • Japan
  • Korea
  • Mexico
  • Middle East
  • Middle East - Arabic
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Russia
  • Slovakia
  • Spain
  • Sweden
  • United States
  • Vietnam

My Services

  • All News Releases
  • Customer Portal
  • Resources
  • Blog
  • Journalists
  • Data Privacy

Do not sell or share my personal information:

  • Submit via Privacy@cision.com 
  • Call Privacy toll-free: 877-297-8921

Contact PR Newswire

Products

About

My Services
  • All News Releases
  • Customer Portal
  • Resources
  • Blog
  • Journalists
+44 (0)20 7454 5110
from 8 AM - 5:30 PM GMT
  • Terms of Use
  • Privacy Policy
  • Information Security Policy
  • Site Map
  • RSS
  • Cookie Settings
Copyright © 2025 PR Newswire Europe Limited. All Rights Reserved. A Cision company.