News
Frutarom sets new records in second quarter
29 Aug 2018Frutarom has announced its 2Q18 financial results. Sales grew by 16.8% to a record $401.3 million. Sales from the Flavors activity grew by 16.4% to a record $296.0 million.
![Frutarom sets new records in second quarter](/img/ingnet-logo.png)
Frutarom has announced its 2Q18 financial results. Sales grew by 16.8% to a record $401.3 million, representing constant currency growth on a pro forma basis of 4.5%. Sales from the Flavors activity grew by 16.4% to a record $296.0 million; constant currency growth on a pro forma basis was 6.1%. Sales from Specialty Fine Ingredients grew by 33.7% to a record $88.8 million; constant currency growth on a pro forma basis was 8.9%.
The company saw gross profit rise 23.7% to $163.4 million; EBITDA rose 34.9% to $90.3 million. Net income rose 42.3% to $52.9 million.Ori Yehudai, President and CEO of Frutarom Group, said: "We are pleased with our significant step forward and the results achieved in the second quarter and first half of 2018, in which we once again set new records in the sales, profits, and margins of our core activities. The quarterly and half-year results reflect the successful implementation of our rapid and profitable growth strategy, 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, and which have led us to achieve our EBITDA margin target of 23% in core activities, originally set for 2020, in the first half of the year.” "Frutarom started 2018 at peak performance: with a broad and innovative product portfolio that places an emphasis on natural products at the interesting cross section of flavor, nutrition and health, with a focus on local, medium-sized customers as well as private label manufacturers, which gives Frutarom a substantial competitive edge. We consider our strategic focus as a significant growth engine for Frutarom's business in the years to come and we intend to continue and accelerate measures conducive to further rapid growth in our core activities - Flavors and Specialty Fine Ingredients. Frutarom’s Flavors activity has grown since 2000 at an average annual rate (CAGR) of 24%, and the Specialty Fine Ingredients continues to grow rapidly, with an emphasis on specialty solutions in the areas of nutrition and 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.” "We are excited to combine Frutarom with IFF and together create global leadership in natural flavor solutions, fragrances, and fine ingredients for health and nutrition, and are delighted with the vote of confidence from our shareholders, who supported the merger in a majority of 94.6%. We are working in full collaboration with IFF management on preparing the integration plan, merging these two great companies, which complement each other, to ensure a successful commercial, operational, technological and organizational merger, while capitalizing on the abundant cross-selling opportunities. I am certain that the growth potential for the combined company is substantial and our shareholders will continue to enjoy this upside in the future,” concluded Yehudai.Related news
![Could Mexico’s salt-cutting measures extend to reformulation?](/47/pdcnewsitem/12/47/45/th124745.png)
Could Mexico’s salt-cutting measures extend to reformulation?
25 Jun 2024
Mexico’s consumer watchdog has called on food industry to reduce salt in processed products available in the country to reduce cardiovascular diseases.
Read more![Will ASEAN harmonise food marketing rules for children?](/47/pdcnewsitem/12/47/17/th124717.png)
Will ASEAN harmonise food marketing rules for children?
21 Jun 2024
ASEAN Health Ministries and UNICEF release new guidelines on how food and beverage brands should market their products to children to protect them from harm.
Read more![Food scientists uncover new way to preserve nutrient and flavour quality](/47/pdcnewsitem/12/45/35/th124535.png)
Food scientists uncover new way to preserve nutrient and flavour quality
29 May 2024
Researchers have developed a method that guarantees food safety for low-moisture products, such as dried milk, while maximising quality by retaining vitamins, minerals, and flavours, they say.
Read more![Gatorade turns on the tap, introducing alkaline water to its latest product offerings](/47/pdcnewsitem/12/43/14/th124314.png)
Gatorade turns on the tap, introducing alkaline water to its latest product offerings
10 May 2024
PepsiCo’s Gatorade has diversified its product portfolio, launching unflavoured alkaline water and energy drink mixes.
Read more![Plant-based marketing 101: How to create a standout plant-based dairy product](/47/pdcnewsitem/12/42/32/th124232.png)
Plant-based marketing 101: How to create a standout plant-based dairy product
30 Apr 2024
Aurore de Monclin from HMT, the marketing firm that helped rebrand Oatly, shares her tips to create a plant-based dairy brand that stands out from the crowd.
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![US legislative push to ban 7 food additives in schools](/47/pdcnewsitem/12/42/04/th124204.png)
US legislative push to ban 7 food additives in schools
17 Apr 2024
Proposed legislation would prohibit the use of seven additives – six artificial colours and titanium dioxide – in food and drink served in US state schools.
Read more![Portugal officially adopts NutriScore](/47/pdcnewsitem/12/41/57/th124157.png)
Portugal officially adopts NutriScore
10 Apr 2024
Portugal has adopted the NutriScore as its official – but voluntary – front-of-pack nutrition label to promote healthy eating, with researchers calling this “a great victory for science and public health”.
Read more![R3PACK Consortium backs BPA ban](/47/pdcnewsitem/12/41/14/th124114.png)
R3PACK Consortium backs BPA ban
9 Apr 2024
The EU-funded research project, R3PACK, urges a ban on Bisphenol A (BPA) and calls for rigorous rules, promoting transparency and prioritising health and the environment.
Read more![Ultra-processed food intake in South Africa at concerning levels, study suggests](/47/pdcnewsitem/12/39/42/th123942.png)
Ultra-processed food intake in South Africa at concerning levels, study suggests
19 Mar 2024
As South Africa considers introducing front-of-pack warning labels and strict marketing limits for unhealthy foods, research has found that low-income South Africans get around half of their calories from ultra-processed foods (UPFs) – “a cause for con...
Read more