ISRAEL: Frutarom profits jump in 2013
Acquisitions and expanding market share have led Frutarom to 2013 profit growth
Expanding market share in the US and emerging economies, as well as recent M&A, helped ingredients and flavours firm Frutarom post "record" growth for 2013.
The Israel-based company posted a 28.3% increase in underlying net profit to US$67.5m. Including a one-time expense net profit growth stood at 22.4% to US$63.6m.
Operating profit was also up 23.6% against the same period last year to US$91.9m. Including a one-time expense this was up 19% to US$86.8m.
Sales were up 9% for the period to US$673.7m.
Frutarom pointed to its rising market share in the US and emerging markets and the "successful integration" of the eight acquisitions it made between 2011 and 2012.
Ori Yehudai, president and CEO of Frutarom said: "2013 was another record year for Frutarom during which we accomplished a quantum leap in our positioning and results. The successful implementation of our strategy of combining profitable organic growth with strategic acquisitions has led to successful achievement of key strategic goals.
"We see significant potential for an additional quantum leap in sales and profits over the coming years. We continue to leverage the many cross-selling opportunities presented by the recent acquisitions, four of which were made over the last few months, which have only partially contributed to the results in 2013."
The firm said had the four acquisitions made in 2013 been consolidated on 1 January 2013, Frutarom revenues would have reached $784 million and net profit would have been $70 million.
Shares in Frutarom were down 1.06% today (19 March) at 13:16 GMT For the year-to-date, shares in Frutarom are up 17.12%.
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