Naturex Reports Sharp Rise in Q1 Sales

Date:31 May 2011

Type:Business News

Source:Food Ingredients First

Sector:Functional & Fortified Foods, Nutrition

Summary:The strong dynamic in sales recorded over the year 2010 continued over the first three months of fiscal year 2011, under the combined effects of an enhanced product range and sales synergies that have benefited all of the markets and geographical regions.

5/31/2011 --- Naturex, a world leader in specialty plant-based natural ingredients, has reported that consolidated revenue for the 1st quarter of 2011 reached 60.4 million euros, up 24.0% in current currencies (+17.5% in constant currencies and constant scope).

The strong dynamic in sales recorded over the year 2010 continued over the first three months of fiscal year 2011, under the combined effects of an enhanced product range and sales synergies that have benefited all of the markets and geographical regions.

The sharp growth in the activity over the quarter has generated a highly favourable leverage effect on the Group's results, confirming the solid performance of 2010 fiscal year:
•    The gross margin stands at 37.4 million euros, up 30.8%. The gross margin rate is clearly improving compared to the 1st quarter of 2010 (+3.1 points), at 58.5% of revenue.
•    Operating income has recorded a very sharp increase (+47.2%), standing at 7.8 million euros. The operating margin has reached 12.2% of revenue, up +1.8 points on a comparable basis, and is in line with the yearly targets concerning profitability announced for 2011 fiscal year.
•    Net income, Group share, over the 1st quarter of 2011 is multiplied by two compared to the 1st quarter of 2010, standing at 4.8 million euros, after taking into account tax expense of 1.3 million euros, the cost of financial debt for 1.1 million euros and 0.4 million euros in other financial income and expense.
Net profitability as such represents 7.5% of the revenue.

"These excellent results for the quarter confirm the solid performance of 2010 and are very closely in line with the yearly targets for growth and profitability announced for 2011", says Jacques Dikansky, President and CEO and founder of Naturex.

"During the upcoming quarters, we are going to continue with our organic development by combining our scientific, technical and sales expertise in order to offer natural ingredients with a high value added, in line with our customers' expectations, in all of the countries where we are located.”