Naturex Reports Robust Growth in Q1
29 Apr 2015 --- Naturex, the global leader in speciality plant-based natural ingredients, announced its 2015 first-quarter consolidated revenue, including growth of 23.9%. the company reported renewed growth for Nutrition & Health in the US, but acknowledges that the European market remains sluggish.
Consolidated revenue for the 2015 first quarter rose to €98.6 million, with particularly robust growth of 23.9%, compared to last year's same period.
The company reports that this good performance has benefited from: a stabilization in sales for the historical Group structure (€79.3 million), which began in the last quarter of 2014; changes in the Group structure with the very good contribution from Vegetable Juices Inc. (€9.6 million); and a favourable currency effect (€9.4 million) primarily from the US dollar during the period.
While Food & Beverage sales were driven by Vegetable Juices Inc, Nutrition & Health resumes its organic growth trajectory.
Food & Beverage had revenue of €63.1 million, with strong 15.9% growth at constant exchange rates, and a substantial contribution from Vegetable Juices Inc. (€9.6 million at constant exchange rates). For the historical Group structure, sales were impacted by a high comparison base as well as continuing sluggishness in Europe, whereas in the United States the shift in favour of natural foods is being pursued actively, notably for colouring and preservatives. In addition, the creation of new concepts within the application laboratories (SpringLabs), notably for the "Colours", "Fruits & Vegetables" and "Quillaia" ranges will facilitate the acquisition of new customers and boost sales for this business in the coming months.
Organic growth of 1.1% for Nutrition & Health confirms the first positive effects of the plan rolled out at the end of 2014 for recapturing growth in the United States by: adopting a commercial approach targeting our historic customers for selected plant extracts; an expanded offering of products with clinically substantiated benefits, notably Pacran® (Cranberry extracts promoting urinary track comfort); and establishing a position in growth markets by introducing innovative concepts based on a convergence of nutrition and health.
These measures will not produce their full effects in terms of growth and profitability until the second half of 2015.
The Europe/Africa region contracted 4.4% at constant exchange rates from last year's same period, reflecting continuing economic stagnation. A commercial revitalization plan similar to the one implemented in the United States is in the process of being deployed in order to improve Naturex's positioning.
The Americas region registered growth in sales of 31.9% at constant exchange rates in large part reflecting the very good contribution of the United States with the integration of sales from Vegetable Juices Inc. and renewed organic growth by its historic businesses.
The Asia/Pacific region grew 12.5% at constant exchange rates, highlighting sustained demand in the Food & Beverage and Nutrition & Health markets.
"The year has gotten off to a very encouraging start: organic growth has stabilized after four consecutive quarters of decline in 2014. Recently acquired Vegetable Juices Inc. is continuing to perform very well and we are benefiting from a more favourable foreign exchange environment,” commented Olivier Rigaud, Naturex's Chief Executive Officer and member of the Board.
"By geographic region and by business, performances were nevertheless mixed: in the United States, momentum is positive for Food & Beverage and Nutrition & Health's gradual recovery is back on a positive track with organic growth; Europe in contrast remains a major focus of attention where we will apply the same measures as in the United States; our initiatives in emerging countries will allow us to strengthen our positions over the year.
“With these achievements of the first quarter, I am confident in our ability to pursue development and to build solid foundations for sustainable growth. In the meantime, our teams throughout the world are focused on implementing our 2015 ‘'Conquest, Cash & People'' action plan. With operating expense cost control measures and the redeployment of personnel as priorities, the effects of these efforts on margins will be visible starting in the 2015 first half.”
