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May 23, 2006

ISREAL: Frutarom Q1 benefits from Nesse boost

Fine ingredients company Frutarom Group’s net sales increased by 9.7% to US$71m in the first quarter of 2006, compared to the period last year, partially helped along by contributions from its acquired savoury foods company Nesse.

Fine ingredients company Frutarom Group’s net sales increased by 9.7% to US$71m in the first quarter of 2006, compared to the period last year, partially helped along by contributions from its acquired savoury foods company Nesse.

Gross profit for the first quarter grew by 8.2% to $27m, compared with the same quarter of 2005. Operating profit jumped 11.8% to reach $10.4m, and net profit for the first quarter rose by 29.3% to reach $8.8m. Earnings per share reached $0.16 compared with $0.13 in the first quarter of 2005.

Ori Yehudai, Frutarom president and CEO said: “Frutarom achieved nice results for the first quarter. We are very pleased with the acquisition of Nesse on which we announced at the beginning of the quarter. This acquisition made an immediate contribution to Frutarom’s sales and profits. The integration of Frutarom’s and Nesse’s activities is being successfully executed and we are working to extract the considerable synergies existing in this strategic acquisition, while leveraging the many cross-selling opportunities.”

The introduction of new products, global sales team changes and synergy between research and development and production sites worldwide between Frutarom’s divisions, were also said to have a positive effect on the Q1 results.

Yehudai added: “Frutarom continues to be focused on realising its rapid growth strategy, combining organic growth of core activities at rates above the industry average with strategic acquisitions of activities and know-how in its main fields of business and in strategic geographic regions.

“Our management will continue to invest substantial efforts and resources in identifying and executing potential acquisitions, and in continuing to achieve growth targets in our core activities, which will ensure that we reach our ambitious goals while creating value for our shareholders.”

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