Record Results Again For Frutarom For Third Quarter:
The Company ' s gross profit in Q3 2012 increased by 21.8%, reaching a third quarter record high of US$58.1 M compared with US$47.7 M during the same quarter last year. Gross margin net of the trade and marketing activity of the acquired company Etol, a non-core activity of Frutarom, increased, reaching 38.1% compared with gross margin of 35.2% during the same period in 2011. Gross profit including the trade and marketing activity of Etol, also increased, coming to 37% of sales. Gross profit for the first nine months of 2012 increased by 23.2%, reaching a record high for the first nine months of US$174.8 M compared with US$141.8 M in for the first nine months of 2011.
Operating profit in Q3 2012 achieved a record third quarter high of US$19.5 M, 12.4% of sales, a 51.5% increase compared with US$12.9 M during the same quarter last year, which constituted 9.5% of sales. Operating profit in the first nine months of 2012 increased by 27.1% to US$59.1 M - 12.5% of sales, compared with US$46.5 M -12.0% of sales - over the same period last year.
The EBITDA achieved by Frutarom in Q3 reached a third quarter record high of US$26.3 M -16.7% of sales, a 41.7% increase compared with US$18.6 M during the same period last year - 13.7% of sales. Frutarom ' s EBITDA in the first nine months of 2012 came to US$79.8 M, a 28.1% increase, compared with US$62.3 M in the same period last year.
Net profit i n Q3 2012 was the highest in the Company's history, reaching US$14.4 M - 9.2% of total revenues, a 66% increase, compared with US$8.7 M in Q3 2011, when it comprised 6.4% of total revenues. In the first nine months of 2012 net profit came to US$41.4 M, a 21.5% increase, compared with US$34.1 M in the first nine months of 2011.E arnings per share in Q3 2012 reached a quarterly high of US$0.25 per share, compared with US$ 0.15 in the same quarter last year. Earnings per share in the first nine months of 2012 reached US$0.72 per share, compared with US$ 0.59 per share in the first nine months of 2011. Q3 2012 also showed a marked improvement in the Company's cash flow from operating activities, reaching US$22.7 M, compared with a cash flow of US$16.6 M for the same quarter last year . Over the first nine months of 2012 cash flow from operating activities increased by 93% reaching US$62.6 M, compared with US$32.5 M during the corresponding period last year. Growth in profit and the actions taken for optimizing inventory levels were the main drivers for the growth in cash flow. Frutarom's equity as at September 30, 2012 totaled US$434.7 M (56.6% of the total balance sheet) compared with US$395.5 M (64.6% of its total balance sheet) as at September 30, 2011 and US$393.6 M as at December 31, 2011 (60.6% of its total balance sheet). Ori Yehudai, Frutarom ' s President and CEO, commented: "Quarter after quarter we have succeed in realizing our rapid profitable growth strategy - a business vision which has led and continues to lead Frutarom to strengthening its business and competitive status and to establish its positioning as one of the largest companies in the world in the area of flavors and fine ingredients. The financial results for the third quarter of 2012 are record results for a quarter, with the highest net profit in the history of the Company. Over the first nine months of 2012 we have achieved profit similar to that achieved over the entire year in 2011. "Following our strategic plan, we continue in the performance of a number of measures which accelerate the Frutarom's growth rate and strengthen our profitability. We accelerated our expansion into target markets with higher growth rates, and we continue, as planned, to expand and change our global sales mix. Over the first nine months of the year we achieved a 70% growth in the emerging markets of China, South East Asia, Central and South America, Central and Eastern Europe and Africa, which currently constitute 35% of our sales compared to 25% of sales only two years ago. In the BRIC countries, Frutarom's sales grew by 41%. At the same time, rapid growth in our flavor sector continues in North America, the largest flavor market in the world, where we grew this year by 60%. "The types of acquisitions we made, their timing, the fast integration of the acquired companies and the rich experience which Frutarom has in integrating acquired activities into its global activities contributed to the improvement in our profit and profitability. The acquisitions also significantly expanded the activity of Frutarom's flavors segment, the most profitable from among the Company's segments, which reached 73% of total company sales (compared to 40% in 2001), while ensuring organic growth at a rate higher than that of the main markets we operate in.
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