•  Net earnings up 3%
  •  Sales climb 27.5%
  •  Acquisitions support "expanding global reach"

Flavours and ingredients company Frutarom said that its first-quarter earnings rose 3% as sales were boosted by acquisitions.

Net earnings during the quarter climbed to US$13.5m, up from $13.1m in the comparable period of last year. Operating profit reached a "record" $17.8m, compared to $16.6m booked in the first quarter of last year.

Sales grew 27.5% year-on-year, rising to $151.2m, the Israeli group said in an earnings release yesterday (30 May).

"This quarter we continued our successful implementation of our rapid growth strategy, combining internal growth with acquisitions, again recording quarterly highs for the company," said president and CEO Ori Yehudai. "Record highs were achieved in gross revenues, EBITDA and net profits."

The company said it has successfully integrated the seven acquisitions made in 2007 and the three acquisitions completed in 2009, contributing to the higher sales and margins. During 2011 the company made five acquisitions and, during the first quarter of this year, Frutarom said its "rapid growth strategy" continued with three further strategic acquisitions.

"The acquisitions, whose value is yet to be fully reflected in the outcomes of our operations, are in advanced stages of integration and support our expanding global reach. These acquisitions have deepened our presence in developed markets as well as in emerging markets where growth rates are higher than the global average and expanded our customer base throughout the world, and the unique and diverse product portfolio we can offer our customers."

Click here for the full release.