The group's revenues in the quarter grew by 70% to 30.3 million dollars, which includes strong organic growth of 24%
The adjusted EBIDTA in the quarter increased by 60% to $7 million and the net profit climbed by 42% to $3.6 million
Karen Cohen Khazon: "I am pleased with the continued implementation of the integrated growth strategy, which is made possible by the solid capital structure of the Turpaz group, low leverage, cash flow from current operations, bank backing from leading financial institutions in Israel and the world and the strengthening of the management and administrative infrastructures"
Turpaz has completed 5 acquisitions since the beginning of the year and has made a total of 8 acquisitions since becoming a public company in May 2021
HOLON, Israel, Nov. 21, 2022 /PRNewswire/ -- Turpaz Industries (TASE: TRPZ), which develops, manufactures and markets fragrance, taste, intermediates for the pharmaceutical industry, raw materials for the agro industry, and fine chemicals and citrus products and aromatic chemicals for the taste and fragrance industry, reports today its financial results. The group presents strong results for both the third quarter of 2022 and for the nine months of this year with a high double-digit growth rate in sales, gross profit and operating profit.
Karen Cohen Khazon, Turpaz's CEO: "I am pleased with the continued implementation of the integrated growth strategy, which is made possible by the solid capital structure of the Turpaz group, low leverage, cash flow from current operations, bank backing from leading financial institutions in Israel and the world and the strengthening of the management and administrative infrastructures. We see there are many opportunities in the market within the sectors of activity in which Turpaz operates, which allow us to continue our integrated growth strategy."
Turpaz group sales in the third quarter of 2022 grew by 70.1% and amounted to $30.3 million compared to sales of $17.8 million in the corresponding quarter last year. The increase is due to organic growth at a rate of 24.2% (neutralized currency effect), from the acquisition of activities and companies that were completed during 2021 and 2022, and from the completion of inventory levels at its customers.
Sales in the first nine months of 2022 grew by 53.7% and amounted to $88.1 million compared to $57.3 million in the corresponding period last year. Organic growth (neutralized currency effect) climbed at a rate of 14.7% during this period. The changes in the exchange rates of the currencies in which Turpaz operates against the dollar subtracted 6.2% from sales in the third quarter of 2022 and 5.4% in the first nine months of 2022.
The company continues to strengthen the taste leg and the fragrance leg of the group by leveraging the synergy between the group companies in sales, cross-selling and the merging of purchasing and development activities. Revenues in the quarter from the taste activities jumped by 194.7% compared to the corresponding period last year and amounted to $15.1 million. Revenues in the quarter from the fragrance activities, increased by 30.2% compared to the corresponding period last year, and amounted to 6.7 million dollars.
Increase in raw material prices
Despite the effect of the increase in raw material prices and shipping costs globally that accompanies the group during the period of the report, the gross profit increased by 64.7% and amounted in the third quarter of this year to 12 million dollars compared to 7.3 million dollars in in the corresponding period last. Gross profit in the first nine months of the year increased by 49% to $34.3 million compared to $23 million in the first nine months of 2021.
The operating profit in the third quarter of this year increased by 46.1% to $5 million compared to $3.4 million in the corresponding quarter last year which led to a net profit of $3.6 million in the quarter, an increase of 42.4% compared to a net profit of $2.5 million in the corresponding quarter last year.
The operating profit in the summary of the first 9 months of 2022 increased by 27% to 14.5 million dollars compared to 11.4 million dollars in the corresponding period last year which led to a net profit of 11.8 million dollars, an increase of 33.4% compared to a net profit of 8.8 million dollars in the same period last year.
The adjusted EBITDA (the profit excluding interest, tax, depreciation, and amortization) increased by 60.1% and amounted in the third quarter of 2022 to $7 million compared to $4.4 million in the corresponding period last year. In the first nine months of 2022 the adjusted EBITDA increased by 42.7% to 20.3 million dollars compared to 14.2 million dollars in the corresponding period last year.
The potential inherent in the acquisitions has not yet been expended
The results of the activities of the New Jersey-based, KLABIN Fragrances, which Turpaz acquired in September of this year for $24 million, will be consolidated into the group's results starting in the fourth quarter of 2022. More so, the results of the Romanian company, Aromatique Food, which operates in the field of savory flavor mixtures, for which the company signed an agreement to acquire control of (65%) in October this year for $3.35 million, will be consolidated after the completion of the transaction subject to receiving regulatory approvals in Romania which are expected to be received in the coming weeks.
Turpaz estimates that as of the date of this report, the full potential inherent in the purchases it has made in the past two years has not yet been expended, and that it is expected to be realized within a few quarters from the completion of the purchase and that the Turpaz group intends to continue implementing the company's growth strategy and make synergistic purchases in its areas of activity.
For information about Turpaz visit: ir.turpaz.co.il
SOURCE Turpaz Industries