Israeli flavours and specialty ingredients company Frutarom has said it intends to accelerate expansion in emerging markets, as it reported its fourth quarter earnings on Wednesday.
During the full year 2012, the company reported a 19.2% increase in revenue to US$618m and net profit increased 23.7% to hit a record high level of US$52m. In the fourth quarter, net profit hit $10.5m from $7.9m in 2011, and revenue rose 10.1% to $144.9m.
“Frutarom intends to continue to accelerate growth in both developed and emerging markets,” said president and CEO of Frutarom Ori Yehuddai.
“We intend to continue investing in growing regions, including in Asia, Central and South America, Central and Eastern Europe and Africa, following the growth of our market share in emerging markets from 27% in 2010 to 36% in 2012, and to 31% this year in the BRIC countries. At the same time and as a result, our share of sales in Western European markets (which also increased), went down from 51% in 2010, to 42% this year.”
The company said it has made eight acquisitions since the start of 2011, which contributed to US$115.5m in sales in 2012.
Flavours now account for 74% of the company’s business, having grown 29.5% during 2012.