News
Frutarom reports another record quarter
31 May 2018Frutarom has reported what it says is another record quarter. Sales grew by 27.2% to a record $384.8 million; constant currency growth on a pro forma basis of 7.6%, while sales from Core Activities grew by 29.0% to $365.7 million.
![Frutarom reports another record quarter](/img/ingnet-logo.png)
Frutarom has reported what it says is another record quarter. Sales grew by 27.2% to a record $384.8 million; constant currency growth on a pro forma basis of 7.6%, while sales from Core Activities grew by 29.0% to $365.7 million; constant currency growth on a pro forma basis of 8.3%. Flavors sales activity grew by 28.3% to $281.5 million, constant currency growth on a pro forma basis of 8.1%. Sales from Specialty Fine Ingredients grew by 29.9% to $86.7 million, constant currency growth on a pro forma basis of 8.5%.
Frutarom also reported record profits from operating activities. Gross profit rose 34.6% to $155.7 million; EBITDA rose 44.3% to $80.4 million; EBITDA margin of core activities reached a record level of 22.2%. Net income rose 35.4% to $45.7 million.Ori Yehudai, President and CEO of Frutarom Group, said: "We are pleased with our significant step forward and the results achieved in Q1 2018, in which we once again set new records in sales, profits, and core activities' profitability. These quarterly results reflect the successful implementation of our rapid and profitable growth strategy, 1 net of a nonrec combining profitable internal growth at higher growth rates than those of the markets in which we operate, together with our strategic acquisitions, which contribute to the ongoing consistent improvement in our results. "Frutarom started 2018 at peak performance: growing at a rate higher than the growth rate of the market it operates in, with a strong and experienced management team, and a global organization operating in over 150 countries, based on a production infrastructure of 74 plants, 93 research and development labs, and 111 marketing and sales offices, with approximately 5,400 employees - over 1,200 of them in marketing and sales, and over 800 in R&D - who cater to, and maintain close daily contact with, over 30,000 customers (12,000 of which have joined us through the 39 acquisitions we've made in the past 5 years), with a broad and innovative product portfolio that places an emphasis on natural products at the interesting cross section of flavor and health, with a customer focus that gives Frutarom a substantial competitive edge. "We have significantly expanded our capabilities into the field of specialty fine ingredients for infant nutrition and clinical elderly nutrition through the Enzymotec acquisition, and its merger into Frutarom is successfully completed and is already contributing to our margins this quarter. We proceed to accelerate the measures aimed at establishing global market leadership in natural herbal extracts, while embracing a vision which includes global collaborations with research institutions and farmers for the development of species and crops of strategic fine ingredients used for flavor, color, health and in the cosmetics industry, while supporting our customers' accelerated switch from synthetic to natural fine ingredients. During the first quarter, we have also expanded our activity in the growing category of natural specialty fine ingredients for the cosmetics and personal care industries, through the acquisition of IBR with its activities integrated with Frutarom's existing activity in this field. "We are very excited to combine Frutarom with IFF and together create global leadership in natural solutions for flavors, specialty fine ingredients for health and nutrition and fragrances. We are certain that the rapid and profitable organic growth and the strategic acquisitions we have made, combined with continuous improvement in our product mix, our focus on natural and healthy products in step with the demands of billions of consumers throughout the world, the geographic expansion in emerging markets with high growth rates, the measures we are taking to optimize our resources will support the merged company's ongoing journey of profitable growth. We will work in full collaboration with IFF's management, to ensure the successful merger of these two great companies, which complement each other in a broad range of areas, while capitalizing on the abundant cross-selling opportunities. I am certain that the growth potential for the combined company is substantial so that our shareholders will benefit from a significant upside."Related news
![Tesco launches laser-etched avocados to reduce plastic packaging](/47/pdcnewsitem/12/47/83/th124783.png)
Tesco launches laser-etched avocados to reduce plastic packaging
3 Jul 2024
UK supermarket chain Tesco is trialing a new laser-etched avocado range as part of its measures to cut down on plastic packaging and enhance its environmental profile.
Read more![Researchers tap into sticky rice as a potential source of clean label starch](/47/pdcnewsitem/12/43/12/th124312.png)
Researchers tap into sticky rice as a potential source of clean label starch
8 May 2024
Pigmented waxy rice may prove to be a good source of clean label starch, according to researchers at the University of Arkansas.
Read more![The rise of plant-based - and plastic-free - chewing gum](/47/pdcnewsitem/12/42/31/th124231.png)
The rise of plant-based - and plastic-free - chewing gum
7 May 2024
Conventional chewing gum is typically made from a gum base that can contain plastic, paraffin, and synthetic resin. Enter the challenger brands making plant-based gum from chicle, the chewy sap of the Sapodilla tree. ‘Chew plants, not plastic,’ they sa...
Read more![Strategies to create category-winning plant-based meat alternatives](/47/pdcnewsitem/12/42/42/th124242.png)
Strategies to create category-winning plant-based meat alternatives
3 May 2024
Keep an eye on emerging categories like breakfast products; offer vegan options in meal kits; and consider ingredient blends to stand out in the increasingly crowded plant-based meat alternative category, says market research experts from Frost & Sulli...
Read more![Children’s food and drink claims centre on health and wellness](/47/pdcnewsitem/12/42/40/th124240.png)
Children’s food and drink claims centre on health and wellness
1 May 2024
A new report by HealthFocus International shows parents are at the forefront of health and wellness trends, leading the way for packaging claims on children’s products.
Read more![The eight global food trends shaping the future of dining](/47/pdcnewsitem/12/41/92/th124192.png)
The eight global food trends shaping the future of dining
23 Apr 2024
Unilever’s Future Menu Trend 2024 report identifies the global food trends shaping the food service industry, providing insights into changing consumer preferences that could provide inspiration for packaged food and drink brands.
Read more![Innova research highlights how floral flavours are having a moment](/47/pdcnewsitem/12/41/95/th124195.png)
Innova research highlights how floral flavours are having a moment
22 Apr 2024
Florals are among the most desirable flavours for global consumers right now, a trend that is tied to their association with health and nutritional properties.
Read more![Balenti adds the benefits of baobab to functional nut butters](/47/pdcnewsitem/12/41/94/th124194.png)
Balenti adds the benefits of baobab to functional nut butters
19 Apr 2024
French startup Balenti uses sustainably sourced, wild-harvested baobab fruit to make its healthy nut butters with functional benefits.
Read more![Ultra-processed foods are the top concern among US consumers, study reveals](/47/pdcnewsitem/12/41/59/th124159.png)
Ultra-processed foods are the top concern among US consumers, study reveals
15 Apr 2024
New data from HealthFocus International shows that ultra-processed foods (UPFs) are the number one food concern for US consumers, ahead of saturated fats and sugar.
Read more![Retailers must do more to promote healthy eating](/47/pdcnewsitem/12/41/58/th124158.png)
Retailers must do more to promote healthy eating
12 Apr 2024
UK retailers could play an even bigger role in helping consumers to make healthier food choices, according to Nesta, an innovation agency targeting social good.
Read more