Go

Breaking News on Supplements & Nutrition - Europe US edition

All feeds

News headlines > Industry

Text size Print Email this page

Pure World bolsters Naturex results

By Jess Halliday, 30-Mar-2006

Related topics: Industry, Phytochemicals, plant extracts

Naturex is progressing faster than anticipated with the integration of US-based Pure World into its operations, reporting a huge leap in sales and operating income in full year 2005.

The French plant extracts supplier acquired US rival Pure World for around $37m (€30m), or $4.30 per share in cash, in June - a move which significantly increased its presence on the US market.

The integration period was anticipated to be between 18 and 24 months, but it is now thought that this will be completed six months earlier.

The impact of Pure World is evident in the sales figures: €50.15m for full year 2005, a 44.1 per cent increase on 2004. Moreover growth rate was still significant, at 10.4 per cent.

In October last year, however, the company indicated that it has been affected by higher energy costs and the need to hire new management to oversee its expansion following the Pure World acquisition.

Thierry Lambert, one of the firm's directors, said: "When you move from a company with €35m in sales to €50m you need to adapt the structure and strengthen management."

The higher energy costs will eventually be passed on to customers.

While the impact of these costs was felt in the first half of the year with a 10.5 per cent drop to €2.2m, over the entire twelve month period operating income was up 38.6 per cent to €6.54m.

Despite having its headquarters in Avignon, France, over 90 per cent of Naturex's sales are generated from overseas. It is active in 30 countries outside France, and 70 per cent of sales are now in the US market.

Related Sponsored Webinars, Videos, Audio

Related Products, Brochures, Web links