"We had preemptively identified the trend towards health products and convenience foods, and we were wise to integrate them into the company's unique product offering; this allowed us to achieve a marketing and competitive advantage that will ensure the continued long-term growth of the company," said Frutarom Industries Ltd. (TASE: FRUT; LSE:FRUT; Pink Sheets:FRUTF) president and CEO Ori Yehudai, in summarizing the company's results for 2010. Net profit rose 32.8% to $44.1 million ($0.77 per share) in 2010 from $33.2 million in 2009.
70% of Frutarom's revenue came from its flavors business, and the rest from its specialty fine ingredients operations.
Revenue rose 6.1% to $451.1 million in 2010 from $425.2 million in 2009. Fourth quarter revenue rose 3.6% to $112.4 million compared with the corresponding quarter. Although most of Frutarom's business is in Europe and Israel, it reports in US dollars. In local currency terms, fourth quarter revenue was 7.3% greater than in the corresponding quarter, and full-year 2010 revenue was 8% higher than in 2009.
Fourth quarter net profit rose 17.8% to a record $8.8 million from NIS 7.5 million for the corresponding quarter.
Frutarom's share price opened at $9.90 in New York today, giving a market cap of $578 million. The share price was unchanged in London at ₤7.80 today, and fell 1.2% the TASE to NIS 35.01.
Published by Globes [online], Israel business news - www.globes-online.com - on March 24, 2011
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