Food flavors and ingredients company Frutarom Industries Ltd. (TASE: FRUT; LSE:FRUT; OTCBB:FRUTF) has reported record results for 2014 in sales, profit and EBITDA.
Frutarom's sales grew by 21.6% in 2014 to $820 million. The company reached its EBITDA target of 20% of sales. Net profit grew by 36.7%, to a record $87.6 million (10.7% of sales), more than double the profit figure for 2011.
The company announced a dividend of NIS 22.7 million ($5.5 million).
The company's management expects its five-year plan to lead to sales of at least $1.5 billion with a 22% rate of EBITDA in its core businesses by 2020.
Frutarom's share price is up 3.29% on the Tel Aviv Stock Exchange this morning.
Frutarom president and CEO Ori Yehudai said, "The results reflect the continued successful implementation of our rapid and profitable growth strategy, a strategy combining profitable internal growth - at rates topping the growth of markets where we operate - with strategic acquisitions. The accelerated pace of internal growth and the contribution provided by the acquisitions, along with improvement in our product mix and steps being taken to optimize the use of our resources, has propelled Frutarom forward to another quantum leap in positioning itself competitively as a leading global player in the fields of flavors and specialty fine ingredients. "The successful implementation of Frutarom's strategy in recent years, which includes substantial expansion of the scope of sales and market share in emerging markets with higher growth rates and in the US, has led to the doubling of sales in the US- with flavors activity, our main focus in North America, growing six-fold - and the tripling of sales in emerging markets compared to 2010. Emerging markets already make up 48% of Frutarom's overall sales compared with 27% in 2010."
Published by Globes [online], Israel business news - www.globes-online.com - on March 16, 2015
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