Turpaz reports record results in Q2/2022: sales grow by 50% to $30.3 million; Net profit increased by 32.7% to $4.2 million

Karen Cohen Khazon, "Turpaz's double-digit growth and strong profit, profitability, and EBITDA stem from our combined growth strategy, which proves effective despite challenging macroeconomic conditions"

Company completes three acquisitions YTD, reaching a total of six acquisitions since it's IPO in May 2021

HOLON, Israel, Sept. 6, 2022 /PRNewswire/ -- Turpaz Industries (Turpaz) (TASE: TRPZ), the developer, manufacturer, and marketer of fragrance and flavor extracts, intermediates for the pharma industry, specialty ingredients for the agrochemical and fine chemicals industries, as well as citrus products and aroma chemicals for the flavor and fragrance industry., reported its financial results for the second quarter of the year, today. The Q2 and H2 results set new records thanks to high growth rates in sales, gross profit, operating profit, and adjusted EBITDA.

Karen Cohen Khazon, Turpaz's CEO, commented on the results, "the record results we reported today reflect double-digit revenues and profit growth stemming from the company's growth strategy. Our strategy combines organic growth and acquisitions. The strong capital structure, low leveraging, and the experienced global management team allow Turpaz to deal effectively with challenging global macroeconomic conditions and persist with our acquisition strategy."

The double-digit growth presented by Turpaz was evident in all parameters reviewed, reflecting the management's global growth strategy. The sales in Q2 2022 grew by 50% to $30.3 million compared with $20.2 million in the same quarter of last year. The sales in the first half of 2022 grew by 46.3% to $57.7 million compared with $39.4 million in the same period last year. The growth is due to acquisitions completed during 2021 and 2022 as well as from organic growth net of currency fluctuations impact that accounted for 11% in the second quarter of 2022 and 10.3% in the first half of the year. These financial outcomes were achieved despite currency fluctuations, particularly in the markets in which the company trades in US$. These fluctuations impaired the sales in the second quarter by 7.7% and 5% in the first half of the year.

The gross profit in the first quarter of 2022 grew by 40.7% to $11.7 million, compared with $8.3 million in the same quarter of last year. The gross profit grew by 41.7% in the first half of 2022 to $22.4 million compared with $15.8 million in the same period last year. The growth in the gross profit and the stability of the gross profitability occurred despite the global increase in raw material and shipping costs.  

The adjusted EBITDA grew by 34.7% in the first quarter of 2022 to $7 million, compared with $5.2 million in the same quarter of last year. The adjusted EBITDA grew to $13.3 million, compared with $9.9 million in the same period last year, an increase of 35%. The operating profit in the second quarter of 2022 has expanded by 19.8% to $5 million, as compared with $4.1 in the same quarter of last year. The operating profit in the first half of 2022 grew by 18.8% to $9.5 million, compared with $8 million in the same period of last year.   

The net profit in the second quarter of 2022 grew by 32.7% to a total of $ 4.2 million, compared with $ 3.2 million in the same quarter last year. The net profit in the first half of 2022 grew by 29.8%, totaling $8.2 million, as opposed to $6.3 million in the same period of last year.

For more information about Turpaz, and the full financial report, visit ir.turpaz.co.il

Contact:
Yoni Adini
[email protected]

SOURCE Turpaz Industries Ltd.