Frutarom reports results, sets sights on private label
Frutarom has reported a record year for 2012: growth of 24.2% to US$618 M in sales, EBITDA crossing…Frutarom has reported a record year for 2012: growth of 24.2% to US$618 M in sales, EBITDA crossing the $100 million mark, and net profit increased to US$52 M or 8.4% of total sales.
The company said that successful implementation of its rapid growth strategy - combining profitable organic growth with strategic acquisitions - has led it to consistent 19% average annual growth since 2000 and a significant improvement in gross profit, operating profit, EBITDA, net profit, cash flow and earnings per share.
In 2012, Frutarom significantly increased its activities in the Flavours segment, its most profitable activity, to 74% of total sales, and accelerated its expansion into target markets with high growth rates, reflected in the 60% growth achieved in 2012 in the emerging markets of China and South East Asia, Central and South America, Central and Eastern Europe and Africa.
At the same time, rapid growth continued in the company’s Flavour activities in the US, the largest flavours market in the world, increasing by 43% in 2012.
These results were achieved in a relatively short time after the completion of Frutarom’s eight recent acquisitions, three at the beginning of 2012. Integration of these eight acquisitions is moving ahead successfully, according to the company, and according to plan, and the acquisitions are contributing to both growth in sales as well as to significantly improved profit.
Frutarom is also moving forward with the integration of production sites and activities, and transferring some activities to countries where operating costs are lower, anticipating further significant yearly savings of US$10 million
Frutarom said that it intends to continue to accelerate growth in both developed and emerging markets, with a special emphasis on the rapidly growing private label market. The company’s market share in emerging markets has grown from 27% in 2010 to 36% in 2012, and to 31% this year in the BRIC countries. At the same time, Frutarom’s share of sales in Western European markets (which also increased), went down from 51% in 2010, to 42% this year.
