Food flavors and ingredients company Frutarom Industries Ltd. (TASE: FRUT; LSE:FRUT; OTCBB:FRUTF) reported its third quarter results today. The company recorded a record quarter. Thanks to organic growth and acquisitions this year, Frutarom's annual revenue is approaching $1.5 billion, and it has raised it sales target for 2020 to $2.25 billion.
Frutarom's third quarter revenue grew 19.6% in comparison with the third quarter of 2016 to $358 million. Revenue from core activity rose 20.2% to $336.6 million. Revenue from flavors products rose 21.3% to a record $272.9 million, while natural ingredients sales revenue rose 19.4% to $67.1 million.
Frutarom's gross profit rose 21.5% to $138.4 million; net profit rose 26.7% to $40.8 million; and earnings per share rose 26.5%.
Frutarom president and CEO Ori Yehudai said, " “We are pleased with the results achieved in the third quarter and the first nine months of 2017 in which we again set ourselves new records in sales, profits and cash flows. The results reflect the successful implementation of the rapid and profitable growth strategy in our core businesses, Flavors and Natural Specialty Fine Ingredients, combining profitable internal growth at higher growth rates than those of the markets in which we operate, together with the successful merger of the strategic acquisitions we have made which are contributing to the continuing and consistent improvement in our results. “Following the accelerated internal growth and ten acquisitions made since the beginning of 2017, Frutarom’s run rate in sales is approaching US$ 1.5 billion. After examining our strong competitive position, accelerated rate of internal growth, our latest acquisitions, our pipeline for future acquisitions and the contribution of the streamlining and global procurement activity, we are raising our target sales for 2020 to US$ 2.25 billion and EBITDA margin from our core businesses to 23%."
Published by Globes [online], Israel business news - www.globes-online.com - on November 21, 2017
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