Israeli flavour and fine ingredients maker Frutarom Industries reported a 23 percent rise in quarterly net profit as sales jumped, boosted by a continued acquisition push.
Frutarom said on Monday it earned $33.7 million, excluding non-recurring expenses, in the second quarter, compared with $27.5 million a year earlier.
Revenue jumped 37 percent to a record $300.2 million, bolstered by 11 acquisitions in 2015. It has bought six more companies in 2016 for $222 million, including its $45 million purchase of Ireland’s Redbrook this month.
“These acquisitions support the realisation of our plans for rapid growth in our core activities while expanding the share of the flavours activity, which entails establishing market leadership in the field of savoury taste solutions,” said Ori Yehudai, Frutarom’s chief executive.
He noted that efficiency measures and integrating the acquired companies are soon expected to lead to annual cost savings of $20-$22 million.
Frutarom said it expects to reach an annual sales target of at least $2 billion by 2020. (Reporting by Steven Scheer; Editing by Tova Cohen).
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Source: Reuters.com
