Nutraceutical unit boosts profits at cocoa group
part to the sale of shares in its biotech subsidiary Natraceutical.
The unit, which last year issued three patents on new nutraceutical compounds derived from natural raw materials such as olives and cocoa, was created in 2002 to be the focus of the group's R&D activity and develop value-added ingredients for the food and beverage industry.
It was floated on the stock exchange the same year and has contributed €2.3 million in net profits to the parent company's 2003 income of €6 million. The rest was driven by higher operating revenue across the group, up 15 per cent from €78 to €90 million, and improved margins that saw EBITA grow 27 per cent to €7.6 million.
Natra, whose main business is the cocoa unit, says it has invested €11 million in reorganizing its business around products with higher margins and growth potential. The company is facing a fall in cocoa prices but will more than double its production of industrial coverings, with a €2.3 milion investment in machinery to produce the high margin product and boost its customer portfolio.
The Natraceutical unit, which has applied for a further two patents this year, is also beginning production of its IN-15 compound and may start manufacturing IN-16 this year also. It currently produces purified caffeine for the food and beverage manufacturers.
There are also plans to increase Natraceutical's capital during the first half of the year.
"The commitment to products which offer a greater added value to all the lines of business has meant an important amount of investment but now we have organized the debt, we are growing with higher margins and the results reflect clear profitability," said Natra president Manuel Moreno.
The company is predicting a rise in profit to 8 million for 2004.
