Frutarom reports 3.8% increase in Q1 net earnings

Israel-based flavour and fragrance company Frutarom has reported that its net earnings for the first quarter of 2013 increased 3.8% to $14m, compared with $13.5m for the same period in 2012.

For the quarter, net sales increased 0.6% to $152.2m, compared with $151.2m for the same period in the previous year.

EBITDA rose 4.7% to $25.9m, compared with $24.7m for the same period in the previous year.

Frutarom stated that the strong results can be attributed to rapid growth strategy, successful integration of acquisitions, unification of R&D, marketing and sales infrastructures, and increased use of innovation.

Frutarom president and CEO Ori Yehudai said that in the past few quarters a number of strategic processes have come to fruition, whose impact is expected to be felt over the next few quarters.

"The growth in North America and in emerging markets has continued in the first quarter of 2013 as well, and is expected to continue."

"It is also our intention to persevere with the realisation of the many cross-selling options we have gained through our acquisitions, along with increasing the contribution of realisation of streamlining processes and improving of our cost structure," Yehudai added.

The company is seeking to invest further in its flavours activities in the US, the leading market in the world for flavours.

Frutarom expects to generate additional savings in a yearly scope of $10m from the first half of 2013 and mainly in 2014, as a result of integration of acquisitions, integration of production sites, and transfer of activities to countries where operational costs are lower.

The company plans strategic acquisition and accelerated expansion into markets with higher growth rates, such as the emerging markets of China and South-East Asia, Central and South America, Eastern Europe and Africa.

The company plans to improve its profitability by strengthening and streamlining its research and development, marketing and sales, purchase, supply chain and manufacturing infrastructures.

Frutarom, headquartered in Haifa, Israel, develops, produces and markets flavours and speciality fine ingredients. Products are produced in its plants in the US, UK, Switzerland, Germany, Israel, China, South Africa and Turkey.