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
[email protected]
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SOURCE Turpaz Industries
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