Israeli flavours and ingredients group Frutarom has posted a 20% increase in third quarter sales to US$71.3m.
The company attributed the growth to the integration of the flavour solutions manufacturer Nesse that was acquired in January 2006, growth in the flavours division, and the introduction of higher-margin new products in its fine ingredients division. Further synergies had also bolstered sales growth, the company said.
Net profit for the third quarter increased by 2.9% to $ 7m. Gross profit was up 16.9% at $26.9m, while operating profit also rose by 16.9% to $ 9.2m.
Sales for the first nine months reached $214.6m, up by 12.2% from the comparable period last year, while net profit for the nine-month period rose by 11% to $24.4m.
“We are satisfied with the company’s achievement during the third quarter,” said president and CEO Ori Yehudai. “Our diligent activity to raise the selling prices of our products has already begun to yield results in the third quarter and, we estimate, will continue to contribute to improving profit margins in the coming quarters. As expected, the Nesse activity that we acquired at the beginning of the year continues to grow and contribute very nicely to Frutarom’s activity. We estimate that extraction of the synergy and cross-selling opportunities will continue next year and contribute to growing Frutarom’s sales and profits.”