The group's sales grew by 26.2% and amounted
to a record 39 million dollars with
an adjusted EBITDA rate of 21.5%, which is one of the highest in
the industry in which the group operates
Sales in the Scent segment showed double-digit
organic growth of 11.0% and Taste segment sales posted double-digit
organic growth of 11.3%
The gross profit increased by 21.8% and
amounted to 14.4 million dollars; The
operating profit increased by 31.1% and amounted to 5.5 million dollars and the net profit increased
by 10% and amounted to 3.3 million
dollars
Since the beginning of 2024, Turpaz has
recruited a number of leading experts with a wealth of knowledge
and experience in leading international companies in the flavor and
fragrance industry, including Global Master Perfumer, Global Senior
Flavorist, Chief Commercial Officer of Flavors Europe and Global
Procurement Manager
From the beginning of 2024, Turpaz has
completed two synergistic strategic acquisitions for its
operations, Sunspray in South
Africa and the Clarys & Willich group in Belgium and Germany, and completed 10 acquisitions since
becoming a public company in May
2021
The Turpaz share was added to the Tel Aviv 125 index in the last update
HOLON, Israel, May 20, 2024
/PRNewswire/ -- Turpaz Industries group (TASE: TRPZ), which
develops, manufactures, markets and sells directly and through its
subsidiaries worldwide, fragrances, flavor solutions and unique raw
materials, reports today its financial results for the first
quarter of 2024 in which record results were recorded in sales,
gross profit and adjusted EBITDA.
The Turpaz group's revenues in the first quarter of 2024 grew by
26.2% and amounted to a sales record of $39
million compared to sales of $30.9
million in the corresponding quarter last year. The increase
is due to both organic growth at a rate of 6.1% and the acquisition
of companies and activities. The results of the Clarys &
Willich group, whose acquisition was completed in April 2024, will be consolidated into the group's
results starting from the second quarter of 2024.
In the division by segments, revenues from the Scent segment
(which constitute 22.6% of the group's sales) achieved a
double-digit organic growth of 11.0%, and grew to $8.8 million, mainly due to growth in the EMEA
region. The revenues from the Taste segment (which constitute 63%
of the group's sales) grew by 52.2% to $24.6
million both as a result of acquisitions completed during
the year 2023 and in the first quarter of 2024, and from
double-digit organic growth of 11.3%.
The revenues from the Specialty Fine Ingredients (which
constitute 14.4% of the group's sales) amounted to 5.6 million dollars, an organic decrease of 16.6%
compared to the corresponding quarter last year mainly from the
continuation of the destocking trend among customers, bringing
forward orders from the first quarter of 2024 to the fourth quarter
of 2023, and increasing competition in this market sector. Turpaz
is operates to change the product mix in this segment, focusing on
the introduction of citrus products and aromatic chemicals into the
flavor and fragrance industries. As part of this process, the
Company completed the construction of additional production lines
for the production of aromatic chemicals and started their
commissioning process.
The Turpaz Industries group's gross profit in the first quarter
of 2024 recorded a record high and grew by 21.8% to 14.4 million dollars compared to a gross profit
of 11.8 million dollars in the
corresponding quarter last year. A record high was also recorded in
the adjusted EBIDTA which grew by 26.9% to 8.4 million dollars, compared to 6.6 million dollars in the corresponding quarter
last year.
The operating profit amounted to 5.5
million dollars in the first quarter of 2024, a growth of
31.1% compared to 4.2 million dollars
in the corresponding quarter last year. The increase and
improvement in the operating profit is due to an increase in sales
and efficiency measures and synergies.
The net profit grew by 10% and amounted to 3.3 million dollars, compared to a net profit of
3 million dollars in the
corresponding quarter last year.
In January 2024, Turpaz entered
into a loan agreement with a banking corporation, for the amount of
33 million Euros, which was used,
among other things, to finance the purchase of Sunspray in
South Africa and the purchase of
the Clarys & Willich group in Belgium and Germany. In addition, in May 2024, Turpaz entered into another loan
agreement with a European banking corporation, for the amount of up
to 25 million Euros, which will also
be used to continue implementing the group's acquisition and growth
strategy.
Karen Cohen Khazon, Chairperson
and CEO of Turpaz Industries: "Turpaz presented record results
in the first quarter of 2024, which are reflected in both revenues,
gross profit and adjusted EBIDTA, and continues to implement the
group's integrated growth strategy based on mergers and
acquisitions, and organic growth.
The management team and I work at all times to continue the
realization of the group's strategy, while continuing its business
expansion and geographical distribution around the globe.
In 2024, we continued to strengthen and expand our global
management avenue and recruited leading experts, with a wealth of
technological and business knowledge and decades of experience in
leading international companies in the world's flavor and fragrance
industry. These recruitments strengthen the Turpaz group's global
capabilities in development, technology in the supply chain and in
meeting the needs of its customers. The Turpaz group has a solid
capital structure, a high cash flow from current operations, strong
backing from financial institutions in Israel and globally, and a high-quality,
expansive management that supports the continued implementation of
the integrated growth strategy."
Acquisitions completed since the beginning of 2024:
In February 2024, Turpaz completed
the purchase of 55% of the shares in Sunspray Solutions Proprietary
Limited, a private company incorporated in South Africa, for 14.1
million Dollars (267.8 million
Rand).
Sunspray is a leading company in its field, providing exclusive
solutions for the food and beverage sector, using customized spray
drying technology for multinational and local companies.
Sunspray has two state-of-the-art factories and development
laboratories located in South
Africa and hundreds of products, natural and synthetic, that
are used, among others, in the field of meat, baking, snacks,
spices, beverages, sauces, dairy products and animal feed.
Sunspray's results were consolidated into the group's financial
statements starting in February
2024.
In April 2024, Turpaz completed
the acquisition of the Clarys & Willich group - a group of
Belgian and German companies in exchange for 47.7 million Dollars (44
million Euros). The Clarys & Willich group was founded
in 1970 and is a leading company in the field of savory flavors,
functional solutions and unique raw materials for the meat and
baking sector. The Clarys & Willich group owns two factories
and development laboratories in Belgium and Germany, covering an area of 19,000 square
meters.
The Clarys & Willich group has a wide customer base in
Europe, mainly in the Benelux
(Belgium, the Netherlands and Luxembourg), and a very wide range of
solutions and products. The results of the Clarys & Willich
group will be consolidated into the financial statements of Turpaz
starting from the second quarter of 2024.
Click here for a presentation published by the company regarding
the acquisition of The Clarys & Willich group.
About Turpaz:
Turpaz was established in February
2011 and operates independently and via its subsidiaries in
the development, production, marketing and sales of fragrances used
in the production of cosmetics and toiletries, personal care
products and atmospheric application. Turpaz also produces natural
and synthetic flavors, spice mixes and special flours (gluten-free)
used in food and beverage production, unique intermediates for the
pharmaceutical industry and the agro and fine chemical industry and
citrus products, and aromatic chemicals for the flavor and
fragrance industry.
The Turpaz group has a wide and diverse portfolio of products,
the result of self-development, which are produced in its factories
around the world. As of the date of publication of the report, the
group develops, manufactures, markets and sells products to more
than 3,000 customers in over 60 countries around the world, and
operates 18 production sites, R&D centers, laboratories and
sales, marketing and regulatory offices, in Israel, the USA, Poland ,
Belgium, Germany, Vietnam, Latvia, Romania, India, Hungary and South
Africa, where about 800 people are employed.
The Turpaz group's strategy is based on integrated growth that
includes goals of double-digit growth and improving its geographic
distribution, through mergers and acquisitions of synergistic
activities for the activities of the Turpaz Group and organic
growth, while leveraging the synergy between the group's companies
in cross-selling, purchasing, development, marketing and meeting
regulatory requirements which Contribute to improving profit and
profitability while operating efficiency.
The Turpaz group operates in accordance with a systematic plan
that it developed for the rapid integration of the acquired company
into the group and the strengthening of the global management,
which includes, among other things, the preservation of the
existing management of the acquired companies and its integration
as part of the Turpaz management, the strengthening of the array of
products and customers and the integration of the control and
control system of the Turpaz group into the sales system
(cross-selling) , research and development, procurement and
finances of the acquired company and all this in order to quickly
exploit the synergies.
Company website: www.turpaz.co.il
Contact:
Yoni Adini, General
Counsel
yoni.adini@turpaz-group.com
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