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Frutarom Q1 profit, sales boosted by acquisitions
May 30, 2012 / 6:27 AM / 6 years ago

Frutarom Q1 profit, sales boosted by acquisitions

* Q1 net profit up at $13.5 million

* Revenue up 27.5 pct, helped by acquisitions

TEL AVIV, May 30 (Reuters) - Israeli food flavourings and specialty ingredients company Frutarom Industries said quarterly net profit rose, boosted by higher sales from acquisitions.

Frutarom, the world’s seventh-largest maker of flavours and specialty ingredients, posted a first-quarter net profit of $13.5 million on Wednesday, up from $13.1 million in the same period last year.

Profit margins in the quarter were hit by higher raw material prices.

Revenue jumped 27.5 percent to a quarterly record of $151 million, buoyed by eight acquisitions since the beginning of 2011, including three completed in the first quarter of 2012.

The three acquisitions in the first quarter contributed $31.4 million.

“These acquisitions have deepened our presence in developed markets as well as in emerging markets where growth rates are higher than the global average and expanded our customer base throughout the world,” president and chief executive Ori Yehudai said.

Frutarom will continue to integrate activities while seeking additional acquisitions.

“A combination of the subsiding global trend of sharp price increases for most raw materials, and the beginning of a fall in some raw material prices from the record highs of 2011 ... alongside the continued realisation of our strategy combining internal growth and acquisitions, will bring about a further significant leap in Frutarom’s sales as well as profits,” Yehudai said. (Reporting by Tova Cohen)

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