|By PR Newswire||
|November 27, 2012 01:58 AM EST||
HAIFA, Israel, November 27, 2012 /PRNewswire/ --
16.2% growth in sales - US$157.1 m;
24% growth in sales net of currency effects;
21.8% growth in gross profit - US$58.1 m;
51.5% growth in operating profit - US$19.5 m;
41.7% growth in EBITDA - US 26.3 m;
Highest net profit in company history - US$14.4 m;
Leap in cash flow - US$22.7 m
Record results also for first 9 months of 2012:
Sales grew by 22.3% to US$473 M
Gross profit grew by 23.2% to US$175 M
Operating profit grew by 27.1% to US$59M
EBITDA increased by 28.1%to US$80 M
Net profit grew by 21.5% to US$41 M; Earnings per share reached US$0.72
93% leap in cash flow to US$ 62.6 M
Frutarom Industries Ltd., (LSE: FRUT, TASE: FRUT, FRUTF.PK) a top-ten company in the Flavors and Fine Ingredients markets, reports continued rapid growth and record results again for Q3 2012 and for the first nine months of 2012 in terms of sales, gross profit, operating profit, EBITDA, net profit and earnings per share, presenting substantial increase in cash flow.
Frutarom's organic growth, reflected also in its accelerated expansion into target markets in emerging markets where growth rates are high, the continued rapid growth of the Company's Flavors sector in North America, the largest flavor market, alongside the successful integration and utilization of the synergies and cross selling opportunities resulting from the eight acquisitions Frutarom made since 2011, have brought about record results for the third quarter, despite challenging market conditions in the global economy in general and in Western Europe in particular and despite the strengthening of the dollar versus the main currencies in which the Company operates, which detracted from sales and dollar profits.
The process of integration of sales, marketing, research and development, purchasing, supply chain and production activities of the eight acquisitions are progressing successfully as planned. Over Q3 these acquisitions continued to contribute not only to a growth in sales but also to improved profit. As integration progresses and the many synergies achieved from the acquisitions are realized, their contribution to profits will increase, the greater part of which will come to fruition in 2013.
In addition, Frutarom is also progressing with plans to integrate a number of production sites and moving other activities to countries where operational costs are lower. The contribution of these activities will come to fruition starting in the second half of 2013.
The Company reports continued rapid growth in third quarter sales, to US$157.1 M, a 24% growth net of currency effects, compared with US$135.3 M during the same quarter in 2011. In dollar terms, sales grew by 16.2%. Frutarom's sales in the Flavors segment, the most profitable of the Company's activities, grew, net of currency effects, by 26.4% during Q3 of this year, compared with the same quarter last year, reaching a third quarter record high of US$114.2 M. Flavors' sales already constitutes 73% of total Frutarom sales (compared with 40% in 2001).
Over the first nine months of 2012, Frutarom sales grew, net of currency effects, by 27.9%, achieving record sales for the first nine months of US$473.1 M, versus US$386.9 M during the first nine months of 2011. In dollar terms, sales grew by 22.3%. Frutarom's sales in the Flavors segment, net of currency effects, increased by 34.6% compared with the first nine months of last year, reaching a high of US$345.6 M for the first nine months. Frutarom's internal growth in Flavors is above growth rates in the main markets in which Frutarom operates and in markets which are strategic for the Company, with an emphasis on North America, Latin America, Asia, Africa and Central and Eastern Europe.
The trend of improvement in profit and gross and operational margins continues. Organic growth, strategic acquisitions, adjustments in Frutarom's product selling prices to its customers, continued stabilization and even the start of a decrease in the prices of some of the raw materials Frutarom uses in the manufacture of its products, actions taken for lowering costs of raw materials by strengthening global purchase and utilization of the many operational synergies derived from the recent acquisitions and improvement in the cost structure have led to a significant rise in Frutarom's margins and profit, also expected to continue in 2013.
The Company's gross profit in Q3 2012 increased by 21.8%, reaching a third quarter record high of US$58.1 M compared with US$47.7 M during the same quarter last year. Gross margin net of the trade and marketing activity of the acquired company Etol, a non-core activity of Frutarom, increased, reaching 38.1% compared with gross margin of 35.2% during the same period in 2011. Gross profit including the trade and marketing activity of Etol, also increased, coming to 37% of sales. Gross profit for the first nine months of 2012 increased by 23.2%, reaching a record high for the first nine months of US$174.8 M compared with US$141.8 M in for the first nine months of 2011.
Operating profit in Q3 2012 achieved a record third quarter high of US$19.5 M, 12.4% of sales, a 51.5% increase compared with US$12.9 M during the same quarter last year, which constituted 9.5% of sales. Operating profit in the first nine months of 2012 increased by 27.1% to US$59.1 M - 12.5% of sales, compared with US$46.5 M -12.0% of sales - over the same period last year.
The EBITDA achieved by Frutarom in Q3 reached a third quarter record high of US$26.3 M -16.7% of sales, a 41.7% increase compared with US$18.6 M during the same period last year - 13.7% of sales. Frutarom's EBITDA in the first nine months of 2012 came to US$79.8 M, a 28.1% increase, compared with US$62.3 M in the same period last year.
Net profit in Q3 2012 was the highest in the Company's history, reaching US$14.4 M - 9.2% of total revenues, a 66% increase, compared with US$8.7 M in Q3 2011, when it comprised 6.4% of total revenues. In the first nine months of 2012 net profit came to US$41.4 M, a 21.5% increase, compared with US$34.1 M in the first nine months of 2011.
Earnings per share in Q3 2012 reached a quarterly high of US$0.25 per share, compared with US$ 0.15 in the same quarter last year. Earnings per share in the first nine months of 2012 reached US$0.72 per share, compared with US$ 0.59 per share in the first nine months of 2011.
Q3 2012 also showed a marked improvement in the Company's cash flow from operating activities, reaching US$22.7 M, compared with a cash flow of US$16.6 M for the same quarter last year. Over the first nine months of 2012 cash flow from operating activities increased by 93% reaching US$62.6 M, compared with US$32.5 M during the corresponding period last year. Growth in profit and the actions taken for optimizing inventory levels were the main drivers for the growth in cash flow.
Frutarom's equity as at September 30, 2012 totaled US$434.7 M (56.6% of the total balance sheet) compared with US$395.5 M (64.6% of its total balance sheet) as at September 30, 2011 and US$393.6 M as at December 31, 2011 (60.6% of its total balance sheet).
Ori Yehudai, Frutarom's President and CEO, commented: "Quarter after quarter we have succeed in realizing our rapid profitable growth strategy - a business vision which has led and continues to lead Frutarom to strengthening its business and competitive status and to establish its positioning as one of the largest companies in the world in the area of flavors and fine ingredients. The financial results for the third quarter of 2012 are record results for a quarter, with the highest net profit in the history of the Company. Over the first nine months of 2012 we have achieved profit similar to that achieved over the entire year in 2011.
"Following our strategic plan, we continue in the performance of a number of measures which accelerate the Frutarom's growth rate and strengthen our profitability. We accelerated our expansion into target markets with higher growth rates, and we continue, as planned, to expand and change our global sales mix. Over the first nine months of the year we achieved a 70% growth in the emerging markets of China, South East Asia, Central and South America, Central and Eastern Europe and Africa, which currently constitute 35% of our sales compared to 25% of sales only two years ago. In the BRIC countries, Frutarom's sales grew by 41%. At the same time, rapid growth in our flavor sector continues in North America, the largest flavor market in the world, where we grew this year by 60%.
"The types of acquisitions we made, their timing, the fast integration of the acquired companies and the rich experience which Frutarom has in integrating acquired activities into its global activities contributed to the improvement in our profit and profitability. The acquisitions also significantly expanded the activity of Frutarom's flavors segment, the most profitable from among the Company's segments, which reached 73% of total company sales (compared to 40% in 2001), while ensuring organic growth at a rate higher than that of the main markets we operate in.
"Our innovative taste and health solutions provide the ultimate solutions for consumers' demands, and are in line with major trends of the global food market, offering advanced combinations of taste and health, anti-aging products and foods targeted towards the needs of specific populations and age groups. The great added value of the Company's solutions, its global purchase infrastructure and its high management abilities for the Company's large product mix provide an excellent business infrastructure for continued growth, utilization of the important competitive advantage in emerging and developed markets and maximization of the potential and of the many business opportunities existing in the global market. These have allowed us to achieve rapid profitable growth even in the challenging market conditions - and this will continue.
"At the same time, we look forward to achieving significant savings in costs and further improvement in our profit margin, as apart from our many cross selling opportunities, the acquisitions created many opportunities for improvement of the Company's profit and margin resulting from the integration of production infrastructures in the main countries we operate, optimization of supply and logistics infrastructures, improvement of global purchase capacity and strengthening our purchase resources. These will take effect mainly next year. In addition, we are also moving ahead with plans to integrate a number of production sites and to transfer other activities to countries where operational costs are lower. The contribution of these activities to profit and margin will mainly come to fruition starting from the second half of next year.
"Frutarom's capital structure and level of net debt, which was significantly reduced, supported by the Company's strong cash flow from operating activities which reached US$63 M over the first nine months of 2012, will allow us to continue to relentlessly realize our rapid and profitable growth strategy".
Frutarom is a global company operating in the global flavor and fine ingredients markets. Frutarom has significant production and development centers in three continents and it markets its products in five continents to over 14,000 customers in more than 130 countries. Frutarom's products are intended mainly for the food, beverage, flavor, fragrance, pharmaceutical, nutraceutical, health food, functional food, food additives and cosmetic industries.
Frutarom, which employs approximately 2,050 people worldwide, has 2 main activities:
- The Flavors Segment, which develops, produces and markets flavor compounds and food systems.
- The Fine Ingredients Segment, which develops, produces and markets natural flavor extracts, natural functional food ingredients, natural pharma/nutraceutical extracts, specialty essential oils, citrus products and aroma chemicals.
Frutarom's products are produced in its plants in the US, UK, Switzerland, Germany, Slovenia, Italy, Israel, China, South Africa and Turkey. The Company's global marketing organization includes branches in Israel, the US, UK, Switzerland, Germany, Belgium, the Netherlands, Denmark, Norway, Italy, France, Hungary, Romania, Russia, Ukraine, Poland, Kazakhstan, Belarus, Turkey, Brazil, Mexico, Costa Rica, China, Japan, Hong Kong, India ,Indonesia and South Africa. The Company also works through local agents and distributors worldwide.
For further information, visit our website: http://www.frutarom.com.
Ori Yehudai, President & CEO
Email: [email protected]
SOURCE Frutarom Industries Ltd
The Internet of Things is in the early stages of mainstream deployment but it promises to unlock value and rapidly transform how organizations manage, operationalize, and monetize their assets. IoT is a complex structure of hardware, sensors, applications, analytics and devices that need to be able to communicate geographically and across all functions. Once the data is collected from numerous endpoints, the challenge then becomes converting it into actionable insight.
Aug. 31, 2015 07:00 PM EDT
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Treloar, President and COO of Bebaio, will explore examples of brands transforming their businesses by t...
Aug. 31, 2015 06:00 PM EDT Reads: 242
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts, GM of Platform at FinancialForce.com, will discuss the value of business applications on wearable ...
Aug. 31, 2015 03:15 PM EDT
While many app developers are comfortable building apps for the smartphone, there is a whole new world out there. In his session at @ThingsExpo, Narayan Sainaney, Co-founder and CTO of Mojio, will discuss how the business case for connected car apps is growing and, with open platform companies having already done the heavy lifting, there really is no barrier to entry.
Aug. 31, 2015 02:30 PM EDT Reads: 141
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and analyzed? As an area of investment, how might a retail company move towards an innovation methodolo...
Aug. 31, 2015 02:30 PM EDT Reads: 454
The Internet of Things (IoT) is about the digitization of physical assets including sensors, devices, machines, gateways, and the network. It creates possibilities for significant value creation and new revenue generating business models via data democratization and ubiquitous analytics across IoT networks. The explosion of data in all forms in IoT requires a more robust and broader lens in order to enable smarter timely actions and better outcomes. Business operations become the key driver of IoT applications and projects. Business operations, IT, and data scientists need advanced analytics t...
Aug. 31, 2015 02:30 PM EDT Reads: 413
Contrary to mainstream media attention, the multiple possibilities of how consumer IoT will transform our everyday lives aren’t the only angle of this headline-gaining trend. There’s a huge opportunity for “industrial IoT” and “Smart Cities” to impact the world in the same capacity – especially during critical situations. For example, a community water dam that needs to release water can leverage embedded critical communications logic to alert the appropriate individuals, on the right device, as soon as they are needed to take action.
Aug. 31, 2015 12:00 PM EDT
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Aug. 31, 2015 11:30 AM EDT Reads: 892
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of technology leadership, Micron's memory solutions enable the world's most innovative computing, consumer,...
Aug. 31, 2015 11:15 AM EDT Reads: 226
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
Aug. 31, 2015 11:00 AM EDT Reads: 161
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes about through a Communications Platform as a Service which allows for messaging, screen sharing, video...
Aug. 31, 2015 10:30 AM EDT Reads: 645
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevOps to advance innovation and increase agility. Specializing in designing, imple...
Aug. 31, 2015 10:15 AM EDT Reads: 303
In his session at @ThingsExpo, Lee Williams, a producer of the first smartphones and tablets, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. He will explain how M2M controllers work through wirelessly connected remote controls; and specifically delve into a retrofit option that reverse-engineers control codes of existing conventional controller systems so they don't have to be replaced and are instantly converted to become smart, connected devices.
Aug. 31, 2015 09:30 AM EDT Reads: 124
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
Aug. 31, 2015 04:00 AM EDT Reads: 417
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Aug. 31, 2015 02:00 AM EDT Reads: 453
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Aug. 30, 2015 10:00 PM EDT Reads: 352
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of streaming data in the cloud with an enterprise grade SLA. It features built-in integration with Azur...
Aug. 28, 2015 07:45 PM EDT Reads: 219
Akana has announced the availability of the new Akana Healthcare Solution. The API-driven solution helps healthcare organizations accelerate their transition to being secure, digitally interoperable businesses. It leverages the Health Level Seven International Fast Healthcare Interoperability Resources (HL7 FHIR) standard to enable broader business use of medical data. Akana developed the Healthcare Solution in response to healthcare businesses that want to increase electronic, multi-device access to health records while reducing operating costs and complying with government regulations.
Aug. 26, 2015 07:00 AM EDT Reads: 191
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
Aug. 2, 2015 11:15 AM EDT Reads: 555
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Aug. 1, 2015 10:00 AM EDT Reads: 485