Turpaz group presents record results in revenue in gross profit and adjusted EBITDA for the first quarter of 2023

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May 22, 2023, 09:00 ET

The taste segment and the fragrance segment continue to show consistent double-digit growth

Turpaz Industries group revenues in the quarter grew by 12.8% to a record of $30.9 million

Gross profit increased by 10.4% to a record 11.8 million dollars

Adjusted EBIDTA grew 4.4% to a record $6.6 million

Turpaz has completed 8 acquisitions since becoming a public company in May 2021

Karen Cohen Khazon Chairman and CEO of Turpaz Industries: "Turpaz presented another quarter of record results that are reflected in both revenues, gross profit and the adjusted EBIDTA, and this despite inflationary pressures resulting from the increase in the prices of raw materials, energy prices and manpower costs. Turpaz strengthened and expanded its global management in order to support the group's global growth strategy and leverage the synergies between the group's companies. We continue to work to acquire additional companies to support the growth strategy, based on organic growth and synergistic acquisitions and mergers for the group's activities. We are currently in an excellent position for this with a solid capital structure, low leverage and a cash fund of 17 million dollars."

HOLON, Israel, May 22, 2023 /PRNewswire/ -- Turpaz Industries (TASE: TRPZ), which develops, manufactures, markets and sells both directly and through its subsidiaries, taste extracts, fragrance extracts and Specialties fine ingredients publishes today its financial reports for the first quarter of 2023 in which record results were recorded in sales, gross profit and adjusted EBITDA.

Turpaz Sales & EBITDA Q1 2020 – Q1 2023 (M' USD)

Turpaz Group's revenues in the first quarter of 2023 grew by 12.8% and amounted to a sales record of $30.9 million compared to sales of $27.4 million in the corresponding quarter last year. The increase is due both to organic growth at a rate of 1.6% (neutralized currency effect) on a proforma basis and to the acquisitions of companies and activities completed from 2022 until the date of publication of the report.

Broken down by sectors, the revenues from the activities of the fragrances sector grew by 33% to 8 million dollars compared to the corresponding quarter last year. Of these, organic growth of 15% (currency neutral). Revenues from the taste segment climbed by 22.3% to $16.1 million with organic growth at 5.1% (currency neutral).

Revenues from the unique raw materials segment totalled $6.8 million, a decrease of 17.2% compared to the corresponding period last year, which is mainly due to destocking trend among segment's customers. Analysts in the field believe that this trend will end already in the second half of 2023.

The gross profit of the Turpaz Industries group in the first quarter of 2023 recorded a record high and grew by 10.4% to 11.8 million dollars compared to a gross profit of 10.7 million dollars in the corresponding quarter last year. A record high was also recorded in the adjusted EBIDTA which increased by 4.4% and amounted in the first quarter of 2023 to 6.6 million dollars compared to 6.3 million dollars in the corresponding period in 2022.

The operating profit amounted to 4.2 million dollars in the first quarter of 2023 compared to 4.6 million dollars in the corresponding period last year, while the net profit amounted to 3 million dollars, compared to 4 million dollars in the corresponding period last year. The main reasons for the decrease are higher depreciation expenses and one-time income from taxes recorded in the corresponding quarter.

Summary of Turpaz purchases in 2023 Q1:

In January 2023, Turpaz completed the purchase of 65% of the share capital of Aromatique Food, a private company incorporated in Romania, in exchange for 17 million Romanian Leu (3.6 million dollars). Aromatique was founded in 2013 and is engaged in the research, development, production, marketing, sale and supply of raw materials and savory functional flavor mixtures for the food industry and is mainly selling to the Romanian market.

Significant events after the report:

On April 18, Turpaz distributed a dividend to its shareholders in the amount of 18 million shekels (5 million dollars).

Company website: www.turpaz.co.il

Contact:
Yoni Adini
[email protected]

Photo: https://mma.prnewswire.com/media/2082124/TURPAZ_EBITDA.jpg

SOURCE Turpaz Industries