TURPAZ INDUSTRIES LTD. ANNOUNCES RECORD THIRD QUARTER & NINE-MONTH 2026 RESULTS

Financial Highlights

• Nine-month revenues grew 33.6% to a record $267.9 million, with organic growth of 6.0% excluding currency effects; third quarter revenues grew 22.6% to a record $94.0 million;
• Core activity (Taste and Fragrance) grew approximately 39.0% in the first nine months, including organic growth of approximately 7.4%, and approximately 29.1% in the third quarter, including organic growth of approximately 5.6%;
• Nine-month gross profit grew 40.2% to $112.1 million (41.8% of revenues, up from 39.9%); third quarter gross profit grew 24.9% to $39.6 million (42.1% of revenues, up from 41.4%);
• Nine-month adjusted EBITDA increased 31.5% to $61.7 million; third quarter adjusted EBITDA increased 16.1% to $21.7 million;
• Nine-month net income grew 55.1% to $25.8 million; third quarter net income grew 9.4% to $6.6 million;
• Current annual revenue run-rate of approximately $390 million, following the acquisitions completed in the U.S., France and South Africa.

Management Comment

Karen Cohen Khazon, Chief Executive Officer of Turpaz Industries, said, "Our continued growth reflects the value we create for our customers through high-quality flavor and fragrance solutions, innovation, and advanced development and manufacturing capabilities, tailored to their needs."

"The acquisitions we have completed since the beginning of the year in the United States, France and South Africa expand our geographic footprint, bring us closer to customers in growing markets and strengthen the range of products and capabilities we offer them. Executing our growth strategy, which is based on strategic acquisitions and organic growth, enables us to continue creating value for our customers and to strengthen the Group's growth engines."

Third Quarter and First Nine Months 2026 Summary

Turpaz Industries Group, a global company that develops, manufactures, markets and sells flavor extracts, fragrance extracts and specialty fine ingredients, today reported record results for the third quarter and first nine months of 2026.

First Nine Months 2026 Results

Core activity, which includes the Taste and Fragrance segments, grew approximately 39.0% compared with the corresponding period last year, including high organic growth of approximately 7.4%.

Group revenues in the first nine months of 2026 grew by 33.6% to a record $267.9 million, compared with the corresponding period last year. The growth was driven by organic growth of 6.0%, excluding currency effects, together with the contribution of the acquisitions completed during 2025 and in the first nine months of 2026.

As of the date of this report, Turpaz's revenues, together with those of the companies acquired in the U.S., France and South Africa during 2026, reflect an annual revenue run-rate of approximately $390 million.

Gross profit in the first nine months grew by 40.2% to $112.1 million. Gross margin improved to 41.8%, compared with 39.9% in the corresponding period. The increase in gross profit stemmed mainly from the growth in revenues, while the improvement in gross margin reflects efficiency measures and the realization of synergies among the Group's companies. Adjusted EBITDA also grew at a high double-digit rate, increasing 31.5% to $61.7 million, compared with $46.9 million in the corresponding period.

Net income grew by 55.1% to $25.8 million in the first nine months of the year. The increase in net income stemmed mainly from profitable growth, the acquisitions completed during the period and the synergies generated from them.

Third Quarter 2026 Results

Core activity grew approximately 29.1% compared with the corresponding quarter last year, including organic growth of approximately 5.6%, against the backdrop of high double-digit core organic growth of approximately 11.6% in the corresponding quarter last year.

Group revenues in the third quarter of 2026 grew by 22.6% to a record $94.0 million. The growth in revenues was mainly attributable to the contribution of the companies whose acquisitions were completed. Gross profit grew by 24.9% to $39.6 million, representing 42.1% of revenues, an improvement from 41.4% in the corresponding quarter last year. Adjusted EBITDA increased by 16.1% to $21.7 million, representing 23.1% of revenues, and net income grew by 9.4% to $6.6 million.

Continued Execution of the Growth Strategy

Since 2017, Turpaz has completed 29 acquisitions worldwide, which have expanded its geographic footprint, strengthened its development and manufacturing capabilities and deepened the range of products and solutions it offers its customers. Since the beginning of 2025 through the date of this report, the Company has completed nine merger and acquisition transactions in South Africa, the U.S., France, the U.K., Belgium, Poland and India, which expanded the Group's activity and deepened its global footprint.

Turpaz identified at an early stage the trends shaping the industry, including the strengthening of the fine fragrance segment. Accordingly, over the past year the Company deepened its activity through three strategic acquisitions, in the U.S., in Grasse, France – the global center of perfumery – and in South Africa, and established a broad global platform that enables it to benefit from the industry's growth trends. Following these acquisitions, Fragrance sales grew by 106.1% in the first nine months to $69.5 million and now represent 26% of Group sales, compared with approximately 17% in the corresponding period last year. The acquisitions significantly expanded the Group's operations in North America and Europe, deepened its activity in fine fragrance, strengthened its development, manufacturing and marketing capabilities, and create significant potential for synergies and continued improvement in profitability.

The Company continues to present a particularly strong capital structure, positive cash flow and good access to sources of financing that support the Group's acquisition strategy. Total equity stands at $320 million and the net debt to adjusted EBITDA ratio is 2.0, reflecting a balanced level of leverage that allows the Company to continue evaluating acquisition opportunities while maintaining financial discipline. The Group also has good access to financing sources that support its continued growth.

English Results Webinar

The Company will be hosting a webinar later today via Zoom, starting at 10am Eastern Time and 5pm Israel Time. On the call, Ms. Karen Cohen Khazon, Chief Executive Officer, and Mr. Guy Gill, Executive Vice President and Chief Financial Officer, will review and present the results and will be available to answer investor questions.

To participate in the Zoom webinar, please register at the following link: https://us06web.zoom.us/webinar/register/WN_hUwaVL_HSualGHL8YeSN3Q

Following registration, investors will be sent the link to the webinar which is accessible either via the Zoom app, or alternatively from a dial-in telephone number. If you have an issue with registration, please contact the Turpaz investor relations team, well in advance of the webinar.

For those unable to participate, the call will be available for replay through the same link, or from a link to the recording on the Turpaz investor relations website, the day following the webinar.

About Turpaz Industries Ltd.

Turpaz Industries Group is a global company operating in the fields of flavor extracts, fragrance extracts and specialty fine ingredients. The Group develops, manufactures, markets and sells thousands of products to more than 5,100 customers in over 100 countries around the world. Turpaz operates 32 manufacturing sites, research and development centers, laboratories and sales, marketing and regulatory offices worldwide, and employs more than 1,200 people. Since 2017, the Company has completed 29 acquisitions worldwide, which have expanded its geographic footprint, strengthened its development and manufacturing capabilities and broadened the range of products and solutions offered to its customers. The Company's business strategy is based on organic growth at a rate higher than market growth, and the successful and systematic implementation of strategic acquisitions.

For more information, please visit Turpaz's website, at: https://www.turpaz.co.il/Investors 

SOURCE Turpaz Industries