Ingredients and flavours producer Frutarom has reported a 5.5% decrease in first-quarter revenues to US$98.4m.
EBITDA fell to $14.5m, from $20.2m, with an EBITDA margin of 14.7% in the first quarter of 2009, against 16.6% in the same period last year. Net income for the first quarter of 2009 reached $5.6m, down from $9.7m in the first quarter of last year.
The company said sales had been hit by the strengthening of the US dollar against European currencies and the Israeli shekel, and also pointed out that the comparable period in 2008 had been a particularly strong quarter. The effects of the global economic crisis and continued de-stocking by Frutarom’s customers had also contributed to the decline.
Frutarom president and CEO Ori Yehudai said Frutarom would “continue to act determinedly” to implement its rapid growth strategy, combining organic growth and strategic acquisitions.
“We consider the challenging and complex period which the global economy undergoes as an opportunity for further strengthening,” Yehudai said.
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“Frutarom entered this challenging and crisis-related economic period as a leading, global, stronger-than-ever company, with strong management and a solid capital structure. Frutarom’s core businesses and products, mostly intended for the food industry, which place it in a relatively stable and defensive field, and its ability to continue improving its cash flow generation from current activities, will enable it to successfully glide trough the global economic crisis and exploit opportunities which have emerged and continue to emerge as a result of this crisis.”
