Turpaz Industries continues to show double-digit growth and record results in revenue, profit and cash flow in 2022

Turpaz sales in 2022 recorded a growth of 38.9% and amounted to a record of 118.6 million dollars, compared to sales of 85.3 million dollars in the corresponding period last year. The sharp increase is due both to organic growth at a rate of 9.9% (neutralized by currency effects), and to the acquisition of synergistic companies for the group's activities. The changes in the exchange rates of the currencies in which the company operates compared to the dollar subtracted about 6.5 million dollars from sales last year compared to 2021.

Division by sectors

Revenues from the taste segment grew by 78.2% to $59.3 million compared to 2021. Revenues from the fragrance segment increased by 41.4% to $27.5 million compared to the same period last year. In the intermediates sector for the pharmaceutical industry, a 23.1% decrease in revenues was recorded compared to the corresponding period last year, mainly due to lower inventory levels for some of our customers. The revenues from the specialty raw materials sector climbed by 33.6% and amounted to 15.7 million dollars.

The annual gross profit of Turpaz Industries recorded another high in 2022 and grew by 37.2% to 47.7 million dollars compared to the corresponding year, while the operating profit jumped in the past year by 70.4% to 27.3 million dollars compared to 2021. The adjusted EBIDTA in 2022 increased by 31.2% to $26.9 million compared to 2021.

In 2022, the Turpaz Industries group also presented a record in net profit, which amounted to 21.3 million dollars, an increase of 66.5% compared to last year. The company has a cash volume of 35.7 million dollars in its coffers. Following the strong results, Turpaz's Board of Directors approved the distribution of a dividend to the shareholders in the amount of 5 million dollars, which equates to NIS 0.18 per share.

4Q 2022 quarter results

In the fourth quarter of 2022, Turpaz's revenues increased by 8.7% to a revenue volume of 30.5 million dollars. Due to the advance of several customers' orders from the current quarter to the previous quarter, an organic decrease (currency neutral) of 2% was recorded compared to the corresponding quarter. The revenues in this quarter were affected by changes in the industry in which we operate, in the shadow of the macroeconomic changes, including the increase in inflation and interest, which affect the adjustment and management of inventory at our customers. In the previous quarter (Q3 2022) the revenues of the Turpaz Industries group jumped by 70%.

The gross profit increased by 14.1% to 13.3 million dollars compared to the corresponding quarter last year and the operating profit jumped by 177% to 12.8 million dollars compared to the corresponding period last year and was affected by the debit of the balance of the insurance company's compensation in the amount of 8.8 million dollars, received in the current quarter following the fire incident of November 2021 at the factory in Beit Kama. The compensation included payment for inventory, property and loss of profits. The net profit in the last quarter of 2022 amounted to 9.5 million dollars, a jump of 140% compared to 4 million dollars in the corresponding quarter.

With the publication of the financial results, Karen Cohen Khazon, Chairman and CEO of Turpaz Industries stated that "Turpaz presents another record year in growth, which is reflected in revenues, profit and cash flow. The group has a solid capital structure, low leverage, high cash flow from current operations, a large cash volume in the coffers and backing from leading banking and financial institutions in Israel and across the globe. All of these allow us to continue growing the company worldwide, while implementing the group's acquisitions and organic growth strategy."

"In 2022, we strengthened our global management team. Last year we acquired five companies around the world with great success, with the aim of deepening our global activities, establishing our position in the world and developing new territories and markets for Turpaz. We are confident that our strategy, based on a combination of organic growth together with mergers and acquisitions of synergistic activities for our activity, while leveraging the synergy between the companies in the group, is the right way to ensure the continued growth and step forward towards the continued flow of value to all of our investors, partners, employees and customers."

Implementation of the integrated growth strategy

The Turpaz group's strategy is based on integrated growth both through organic growth and through mergers and acquisitions of synergistic activities. The Turpaz Group works tirelessly to integrate and coordinate the activities of the group's companies in the areas of sales, procurement, development and compliance with regulatory requirements, which improve the geographical distribution of Turpaz and contribute to improving the overall profit and profitability of the group.

The Turpaz Group implements a systematic plan that it developed for the rapid integration of each acquired company into the group and the strengthening of the global management, which includes, among other things, the preservation of the existing managements of the acquired companies and their integration as part of the Turpaz management, the strengthening of the array of products and customers and the implementation of the control and control system of the Turpaz Group in the sales system (cross-selling), the research and development, procurement and finances of the acquired companies, with the aim of bringing about a quick and effective exploitation of the synergies.

Using this model, Turpaz has acquired five companies since the beginning of 2022 and eight companies since its IPO in May 2021. In the company's estimation, the full efficiency and synergy potential inherent in the purchases it has made in the past two years has not yet been exhausted and they are expected to be realized within several quarters of the completion of the purchase.

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For information about Turpaz visit: ir.turpaz.co.il

Contact:
Yoni Adini
[email protected]

SOURCE Turpaz Industries