ISRAEL – Israeli flavours company Frutarom has published its performance for the 2017 with sales growing by 18.8% to a record US$1.4 billion buoyed by organic growth and successful acquisitions of companies around the world.
The company reported an operating profit of US$211 million, up 41%, with its its EBITDA jumping 34% to US$257 million.
The company reported net profit growth of 37% to US$150 million in the year.
Frutarom said that sales growth was realised from several acquisitions made in both 2016 and 2017.
During 2017 Frutarom carried out 12 strategic acquisitions and two additional ones were already performed in 2018 in exchange for a total of US$390 million.
In what was the largest ever acquisition, Frutarom acquired Enzymotec Ltd, a developer, manufacturer and marketer of innovative bio-active lipid ingredients and nutritional products for US$290 million.
Frutarom’s organic flavors segment recorded 7% growth attributed to acquired activities, boosted by higher sales of up to US$1 billion.
Good results were achieved from special raw materials business which posted 11.8% in organic growth and 14% in total growth and higher sales achieved in trade and marketing.
Revenue totalled $357 million in the fourth quarter, 24% more than in the corresponding quarter in 2016, operating profit was up 65% to US$53 million in the quarter, and net profit jumped 47% to US$40 million.
Sales from flavors activity grew by 21.1% to a record us$1.024 billion, while those from natural specialty fine ingredients grew by 14.2% to us$ 260.1 million.
“The accelerated 19.1% growth in our core activities in 2017, is a result of the continued rapid organic growth of our Flavors activity at an annual rate of 7.2 percent, and a quarterly rate of 10.2% and our Specialty Fine Ingredients activity at an annual rate of 11.8% and the contribution of the strategic acquisitions we have carried out and merged successfully,” said Ori Yehudai, President and CEO of Frutarom Group.
In 2018, the company looks forward to “another record year” as it works to establish a robust and top quality future acquisitions, which support the realization of it’s plans for rapid growth while expanding the share of the flavors activity.
It expects to strengthen its position in Savory Solutions and expand the portfolio of natural solutions the company offers in flavors, health, colors and natural antioxidant activities.
Frutarom also plans to accelerate growth and expand its market share in North America and emerging markets with high growth rates