Fine ingredients company Frutarom has reported a 7.9% increase in second-quarter sales to US$72.3m, with revenues for the first half up by 8.7% at $143.3m.
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However, profitability was adversely affected by higher raw material prices. Operating profit for the quarter reached $9.7m, against $11.6m last year, while operating margins stood at 13.4% compared with 17.2% in the corresponding quarter last year.
Net profit for the second quarter increased by 2.2% to $8.6m, while for the six-month period net profit rose by 14.4% to $17.4m.
The company attributed the sales increase to a combination of organic growth in core activities and strategic acquisitions.
Frutarom also said it was looking for further acquisitions. “Frutarom’s management continually seeks to find and execute strategic acquisitions,” said group president and CEO Ori Yehudai. “Frutarom is in contact with several companies that are interesting candidates for potential acquisition, mainly in countries and markets where we already have significant activity.”
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By GlobalDataThe acquisition of Nesse contributed about $8.9m to second-quarter sales, the company said, adding that the integration of Frutarom’s and Nesse’s activities was proceeding “very successfully”. Sales growth at its flavours division had also contributed to growth, as had greater synergy and cross-selling opportunities between Frutarom’s divisions.
Second-quarter earnings per share were unchanged from 2005 at $0.15, while EPS for the first half increased to $0.31 from $0.28 in 2005.
