|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
WebRTC adoption has generated a wave of creative uses of communications and collaboration through websites, sales apps, customer care and business applications. As WebRTC has become more mainstream it has evolved to use cases beyond the original peer-to-peer case, which has led to a repeating requirement for interoperability with existing infrastructures. In his session at @ThingsExpo, Graham Holt, Executive Vice President of Daitan Group, will cover implementation examples that have enabled ea...
Sep. 25, 2016 08:00 AM EDT Reads: 1,479
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
Sep. 25, 2016 08:00 AM EDT Reads: 1,483
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
Sep. 25, 2016 08:00 AM EDT Reads: 1,659
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
Sep. 25, 2016 07:30 AM EDT Reads: 1,749
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
Sep. 25, 2016 06:30 AM EDT Reads: 2,797
Technology vendors and analysts are eager to paint a rosy picture of how wonderful IoT is and why your deployment will be great with the use of their products and services. While it is easy to showcase successful IoT solutions, identifying IoT systems that missed the mark or failed can often provide more in the way of key lessons learned. In his session at @ThingsExpo, Peter Vanderminden, Principal Industry Analyst for IoT & Digital Supply Chain to Flatiron Strategies, will focus on how IoT de...
Sep. 25, 2016 05:30 AM EDT Reads: 981
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
Sep. 25, 2016 04:45 AM EDT Reads: 1,503
SYS-CON Events announced today that China Unicom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE F...
Sep. 25, 2016 04:15 AM EDT Reads: 1,682
SYS-CON Events announced today that Roundee / LinearHub will exhibit at the WebRTC Summit at @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LinearHub provides Roundee Service, a smart platform for enterprise video conferencing with enhanced features such as automatic recording and transcription service. Slack users can integrate Roundee to their team via Slack’s App Directory, and '/roundee' command lets your video conference ...
Sep. 25, 2016 04:15 AM EDT Reads: 1,381
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Sep. 25, 2016 03:15 AM EDT Reads: 3,352
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Sep. 25, 2016 02:45 AM EDT Reads: 1,715
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...
Sep. 25, 2016 02:15 AM EDT Reads: 1,213
SYS-CON Events announced today that Numerex Corp, a leading provider of managed enterprise solutions enabling the Internet of Things (IoT), will exhibit at the 19th International Cloud Expo | @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating...
Sep. 25, 2016 12:45 AM EDT Reads: 1,931
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
Sep. 25, 2016 12:45 AM EDT Reads: 1,037
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
Sep. 24, 2016 09:45 PM EDT Reads: 1,617
The vision of a connected smart home is becoming reality with the application of integrated wireless technologies in devices and appliances. The use of standardized and TCP/IP networked wireless technologies in line-powered and battery operated sensors and controls has led to the adoption of radios in the 2.4GHz band, including Wi-Fi, BT/BLE and 802.15.4 applied ZigBee and Thread. This is driving the need for robust wireless coexistence for multiple radios to ensure throughput performance and th...
Sep. 24, 2016 08:30 PM EDT Reads: 1,451
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
Sep. 24, 2016 04:30 PM EDT Reads: 1,516
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
Sep. 24, 2016 01:00 PM EDT Reads: 1,495
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Sep. 24, 2016 12:00 PM EDT Reads: 790
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
Sep. 24, 2016 12:00 PM EDT Reads: 790