Frutarom has posted record earnings in its third quarter 2016/17 results as sales rose to $358.8 million, an increase of almost 20% on the previous year.
The results have now seen the flavours and ingredients specialist raise its 2020 sales target to $2.25 billion.
Sales from flavour activities grew by 21.3% to $272.9 million and sales from the natural specialty fine ingredients activities grew by 19.4% to a record $67.1 million. Elsewhere, gross profit grew by 21.5% to $138.4 million.
Ori Yehudai president and chief executive officer at Frutarom said: “We are pleased with the results achieved in the third quarter of 2017 in which we again set ourselves new records in sales, profits and cash flows
“The results reflect the successful implementation of the rapid and profitable growth strategy in our core businesses, flavours and natural specialty fine ingredients, combining profitable internal growth at higher growth rates than those of the markets in which we operate, together with the successful merger of the strategic acquisitions we have made which are contributing to the continuing and consistent improvement in our results.
“Following the accelerated internal growth and ten acquisitions made since the beginning of 2017, Frutarom’s run rate in sales is approaching US$1.5 billion.
“After examining our strong competitive position, accelerated rate of internal growth, our latest acquisitions, our pipeline for future acquisitions and the contribution of the streamlining and global procurement activity, we are raising our target sales for 2020 to $2.25 billion.”
As reported on foodbev.com, Frutarom have made over ten acquisitions so far in 2017, with its latest agreement being the agreement with Spanish biotech company AB-Biotics to acquire its iron deficiency ingredient AB-Fortis.
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