Frutarom smashes revenue records in 2013

Frutarom smashes revenue records in 2013

Flavors company sees significant potential for an additional quantum leap in sales and profits over the coming years.

  • Sharp rise in gross profit from core business, including the Flavors and Specialty Fine Ingredients activities, (net of one-time expenses) to 39.8 percent of total sales, compared with 37.6 percent in 2012
  • EBITDA from core business (net of one-time expenses) reached a record of US$119.5, 18.8 percent of sales
  • Net profit (net of one-time expenses) reached an annual record of US$67.5 million (10 percent of revenues)
  • Sharp increase of 32 percent in fourth quarter revenues of 2013 to US$192 million reflecting 6.2 percent organic growth
  • Fourth quarter EBITDA from core business (net of one-time expenses) increased by 41 percent reaching US$ 30.7 million, 17.9 percent of sales
  • Net profit in fourth quarter (net of one-time expenses) increased by 49.9 percent, reaching US$ 17.2 million, 9 percent of sales
  • Frutarom sales (including full consolidation of the acquisitions of 2013) would have reached $784 million and net profit would have been $70 million
  • Revenues from emerging markets (including full consolidation of the acquisitions of 2013) have increased to 46 percent

Ori Yehudai, president and CEO of Frutarom:
"2013 was another record year for Frutarom during which we accomplished a quantum leap in our positioning and results. The successful implementation of our strategy of combining profitable organic growth with strategic acquisitions has led to successful achievement of key strategic goals, including: strategic change in our product mix while significantly increasing our Flavors activity, the most profitable of our activities, and improving our Specialty Fine Ingredients product mix; change in our geographic sales mix while significantly expanding our market share in emerging markets and in the United States; improvement in profits and profitability rates while optimizing resources resulting from the acquisitions we made, creating operational savings and strengthening our competitiveness and market position as one of the leading global flavors and fine ingredients houses, strategically positioned at the crossroad between the growing worlds of taste and health.

“We see significant potential for an additional quantum leap in sales and profits over the coming years. We continue to leverage the many cross-selling opportunities presented by the recent acquisitions, four of which were made over the last few months, which have only partially contributed to the results in 2013. We are also working on leveraging the many technological capacities we have gained through the acquisitions, and are seeking more synergetic acquisitions. We continue to successfully implement projects to streamline and optimize our resources, the results of which have already been seen in the second half of 2013, including the building of a global purchasing system and consolidation of plants, and are working to utilize the significant opportunities for operational synergies created following the latest acquisitions.

“We believe that these actions, combined with continued successful implementation of our rapid and profitable growth strategy and a strong pipeline of future acquisitions, will serve as a springboard for another significant quantum leap in Frutarom sales, profit and profitability. Our revenue target of one billion dollars and an EBITDA margin of 20 percent in our core business will serve as a further catalyst for the continued strengthening of Frutarom's position, while creating value to our shareholders."


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