Frutarom has posted strong double digit growth figures for its second quarter/half year results, driven by acquisitions, organic growth, price increases, falling raw material costs and more favourable purchasing deals.
The company said these factors had significantly boosted Frutarom’s profits and improvement in its cost structure, the results of which were expected to come more fully to fruition in 2013.
The flavours and ingredients firm’s growth strategy and continued progress on integration and benefits from eight acquisitions made since 2011, delivered the best financial results in its history, it said.
“The acquisitions have created many opportunities for improvement of Frutarom’s profit and margins,” said Frutarom president and chief executive Ori Yehudai. This had been achieved through integration of production sites, optimising supply chain and logistics and improvement of global purchase capacity, he added.
The purchases had also “allowed us to expand our growing activities in the area of flavours, our most profitable activity, which today enjoys organic growth above market growth rates”, he continued.
“As planned, we strengthened our presence in strategic markets mainly in north America, Asia, Latin America, Africa and Central and Eastern Europe, currently considered the fastest growing food markets in the world. We continue to invest great resources in accelerating growth in these markets in order to utilise the great potential and opportunities there.”
The results had been achieved in spite of the challenging market conditions in the global economy in general and Western Europe in particular, said Frutarom.
Frutarom reported pre-tax profit growth of 28.3%, from $22.2m in the three months to June 30 to $28.5m on sales up 26%, from $130.6m to $165m, comparing the same periods.
The company’s growth strategy had contributed significantly to the results and Yehudai said: “...we expect it to lead us to achieve a further significant leap in Frutarom’s sales as well as profits and margins over the coming quarters, and especially in 2013.”