Frutarom Industries Ltd. (TASE: FRUT; LSE:FRUT; OTCBB:FRUTF) has reported record revenue of of $300.2 million in the second quarter of 2016, up 37.4% on the corresponding quarter of 2015. The company reported that constant currency growth in pro-forma terms was 7.2%.
Adjusted for non-recurring items, gross profit grew by 36.9% to $116.9 million; EBITDA grew by 33.2% to $57.2 million; and net profit grew by 22.7% to $33.7 million. Cash flow from operating activity more than doubled, growing by 110.8% to $36.7 million.
Frutarom's share price is currently up 0.55% on the Tel Aviv Stock Exchange, at NIS 202.50.
Israeli company Frutarom, which produces and sells food flavors and specialty fine ingredients, is one of the ten largest companies in the world in its field. It is included in the Tel Aviv 25 Index of leading stocks, and is also traded on the London Stock Exchange. During 2015, Frutarom invested $330 million in acquiring thirteen companies around the world, and its share price rose70% over the year. The most significant acquisition was of Austrian company Wiberg for $130 million. In 2016, the company has made six further acquisitions for a total of $22 million.
Frutarom president and CEO Ori Yehudai said, “Second quarter 2016 with sales of over US$ 300 million produced is another milestone in our journey of rapid and profitable growth. The successful implementation of the growth strategy, combining profitable internal growth at higher than average market growth rates together with strategic acquisitions that contribute to the ongoing improvement in our results, has brought us another record quarter for both sales and profits.
“The projects for combining and consolidating activities and production sites and towards achieving utmost efficiency are proceeding successfully. These efficiency measures, which will also contribute in the coming years to strengthening our competitiveness and improving profits and margins, should lead to operational savings on an annual basis in the range of $20-22 million in relation to Frutarom’s cost structure in the second quarter of 2016. “In addition, we are continuing to work on building up and strengthening the global purchasing platform, exploiting our purchasing power which has grown significantly in recent years and switching to buying raw materials in source countries, particularly natural raw materials. The global purchasing platform too will contribute to further improvement in Frutarom’s profitability.
“We are continuing to invest considerable resources into R&D and innovation which constitute the foundation for ensuring Frutarom’s continuing unique rapid growth into the future."
Published by Globes [online], Israel business news - www.globes-online.com - on August 15, 2016
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