Record Results for the Turpaz Group in 2024 - Double-digit growth in revenue, operating profit, adj. EBITDA and net profit

Turpaz sales in the fourth quarter jumped 65% to a record $55 million; adj. EBITDA, which is among the industry leaders, rose to 23% of sales in the fourth quarter, reflecting a 66.7% increase compared to the corresponding quarter; operating profit in the fourth quarter jumped 71% and net profit grew 34.5%

HOLON, Isreal, March 18, 2025 /PRNewswire/ -- The Turpaz Industries group (TASE: TRPZ), which develops, manufactures, markets and sells, directly and through its subsidiaries worldwide, fragrance extracts, flavor solutions and specialty fine ingredients, reports today its financial results for 2024 and the fourth quarter of the year.

Turpaz's core activity, which includes the Taste and Fragrances segments, doubled in the fourth quarter of 2024, including organic growth at a double-digit rate of 10.3%, and in 2024, core activity grew by 73.7%, including organic growth of 8.2%

• In 2024 as a whole, pro forma sales amounted to $212.6 million. Sales in 2024 grew by 48.4% to a peak of $188.9 million, an average annual growth of 37.6%, showing consistent growth between 2020 and 2024. 
• Sales in 2024 grew by 48.4% to a record $188.9 million, an average annual growth of 37.6%, reflecting consistent growth between 2020 and 2024.
• Adj. EBITDA grew by 54.8% to $43.0 million, and the adj. EBITDA margin reached 22.7%
• Operating profit in the past year grew by 52.5% to $27.7 million and net profit increased by 23.4% to $15.9 million. 
• Turpaz has completed 6 acquisition transactions since the beginning of 2024 to date, in the UK, Germany, Belgium and South Africa, which allowed it to grow and consolidate its global footprint and expand into new markets with significant growth potential.
• In the fourth quarter, a strengthening trend began in the specialty fine ingredients segment, with sales of $5.3 million, reflecting a sales rate of $21 million. This trend is expected to continue and even strengthen in 2025.

Karen Cohen Khazon, Chairperson and CEO of Turpaz Industries, summarizes 2024: I am proud to share with you Turpaz's record results for 2024, which reflect business resilience and growth - with double-digit growth in revenue, gross profit, operating profit, adjusted EBITDA and net profit. The implementation of our strategy based upon the combination of organic growth and synergistic mergers and acquisitions for its operations, the company produces consistent double-digit growth, while maintaining high profitability. We are committed to continuing global expansion, while maintaining strong cash flow and stable funding sources. Turpaz continues to realize its vision of becoming one of the ten leading companies in the world in the field of flavor and fragrance, and we are committed to continuing to act decisively to achieve this goal.

Turpaz breaks new records, shows double-digit growth in Q4

In the fourth quarter of 2024, Turpaz's revenues grew by 64.9% compared to the corresponding quarter and amounted to a record $55 million. The increase stems from acquisitions completed in 2024 and strong organic growth in Turpaz's core activity in the field of flavors and fragrances, offsetting negative organic growth in the field of specialty fine ingredients. The field of specialty fine ingredients began to show improvement in the fourth quarter of 2024 and the company estimates that this trend will continue and even strengthen in 2025.

Divided by areas of activity, the Taste segment grew by 146% to $41.3 million, owing to acquisitions completed in 2024 and double-digit organic growth of 11.4%. The Fragrances segment grew organically by 5% to $8.4 million, and the Specialty fine Ingredients segment recovered in the fourth quarter of the year with sales of $5.3 million, a trend that is expected to continue and even strengthen in 2025.

Gross profit increased by 57.6% to $21.4 million, mainly due to the increase in sales, and operating profit increased by 71.1% to $8.8 million. Adj. EBITDA in the quarter, which rose to 23% and is one of the highest in the industry in which Turpaz operates, grew by 66.7% compared to the corresponding quarter last year, to $12.6 million. Net profit grew by 34.5% to $4.5 million.

Record results were also recorded in 2024

In 2024, Turpaz's revenues grew by 48.4% and amounted to a new record of $188.9 million.

In pro forma terms, i.e. if the acquisitions made in 2023 and 2024 had occurred on January 1, 2023, the group's revenues are estimated at $212.6 million, net profit is $18.1 million and adj. EBITDA is estimated at $49.5 million.

Revenues from the Taste segment soared by 107.4% compared to 2023 and amounted to $135.5 million, of which organic growth was 8.5%, and revenues from the Fragrances segment grew organically by 7% and amounted to $34.9 million.

Gross profit increased by 48.5% compared to the previous year to a record $73.7 million, and operating profit increased by 52.5% to $27.7 million.

The adj. EBITDA in 2024, which is 22.7% and is one of the highest in the industry in which Turpaz operates, grew by 54.8% compared to 2023, and amounted to $ 43.0 million. The Turpaz Industries group presented a net profit in 2023 that amounted to $ 15.9 million, an increase of 23.4% mainly due to the profitable growth in the core areas of activity, completed acquisitions and the synergy achieved as a result.

The company has cash in the amount of $ 25.9 million, which indicates, among other things, the financial strength of the company, which allows it to continue to act in order to realize the acquisition strategy that the company has been successfully pursuing since its inception.

The group develops, manufactures, markets and sells products to more than 3,500 customers in over 65 countries worldwide, and operates 22 manufacturing sites, R&D centers, laboratories and sales, marketing and regulatory offices in Israel, the USA, Poland, Belgium, Germany, Vietnam, Latvia, Romania, India, Hungary, UK and South Africa, employing over 850 people.

Since the beginning of 2024, Turpaz has completed 6 merger and acquisition transactions in the UK, Germany, Belgium, and South Africa, which have expanded and consolidated its geographical footprint both by entering new territories and by establishing and expanding existing activities, enabling the leveraging of synergy with the company's operations.

Company website: www.turpaz.co.il

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Contact:
Yoni Adini, General Counsel
[email protected]

SOURCE Turpaz Industries