Flavors and fragrance player Frutarom has reported record-breaking Q2 results with a 14.4 percent sales increase to $343.6 million compared to $300.2 million in the comparable period last year, a rise attributed in part to the 24 acquisitions made over a period of 30 months.
The Israeli company reported a 22.7 percent increase in net profit to $37.2 million, while first half sales rose 15.8 percent to $646.1 million.
Ori Yehudai, President and CEO of Frutarom, said, “We are pleased with the results achieved in the second quarter and the first half of 2017 in which we again set ourselves new records in sales, profits and cash flows. Our sales turnover in the last 12 months on a pro-forma basis already stands at US$1.3 billion.
“The results reflect the successful implementation of our rapid and profitable growth strategy combining profitable internal growth at higher growth rates than those of the markets in which we operate, together with the successful merger of our strategic acquisitions that contribute to the continuing and consistent improvement in our results.”
The positive results follow news of the company’s fifth acquisition this year, which saw the purchase of 100 percent of shares in UK company Flavours and Essences (F&E) for $19.5 million, a price based on a three year projection of the company’s business performance.
Speaking to FoodIngredientsFirst, a spokesperson for the company said, “Frutarom is already very active in the Flavors segment in the UK and we believe we hold a leading position. The acquisition of F&E is an add on to our businesses which will reinforce our growing activity in the UK, increase our market share and the product offering to the many customers of both Frutarom and F&E. We intend to exploit to the utmost the cross selling opportunities inherent in this acquisition.”