ISRAEL: Frutarom posts record profits
Frutarom posted record H1 profits
Frutarom Industries, the flavour and ingredients maker, has announced record half-year profits.
A fall in second-quarter profits was not enough to stop Frutarom from a record first-half net profit of US$25.4m. Sales increased 10.5% to $251.6m.
Second-quarter net profit reached $12.3m, down from $13m a year earlier. Operating profit stood at $17m, compared to $19.4m a year ago. Sales, however, grew 14.3% to $130.6m.
Despite the lower quarterly profits, Ori Yehudai, Frutarom's president and CEO, said the company was "pleased" as the results were up against an "exceptionally strong" second quarter in 2010.
Yehudai said Frutarom's moves to increase prices and improve efficiency had helped the company's profits amid rising commodity costs.
"We have witnessed a significant global trend of raw materials price increases, including many of the raw materials used by Frutarom in the manufacture of its products," Yehudai said.
"This trend seems to have moderated somewhat in recent weeks. The actions that we took to protect our profitability, the pricing update that we performed and our continuous efforts to improve our efficiency have enabled us to maintain the profitability level that characterised our activity in the recent years."
Frutarom employs approximately 1,500 people worldwide and has plants in the US, UK, Switzerland, Germany, Israel, China, South Africa and Turkey.
Frutarom is set to make its third acquisition of 2012 after signing a deal to buy Brazilian flavours firm Mylner....
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