Naturex Reports Solid Half-Year Results

Consolidated revenue for the 1st half of 2012 amounts to €147.2 million, up 15.0% compared to the 1st half of 2011. This revenue includes a consolidation scope effect of 6.3%, confirming the good contribution over the period of newly acquired companies (BURGUNDY, PEKTOWIN, VALENTINE).

31 Aug 2012 --- Naturex, world leader in specialty plant-based ingredients, presents its consolidated results for the 1st half year of financial year 2012. The dynamic in sales recorded over the year 2011 continued over the 1st half of 2012, under the combined effects of an enhanced product range thanks to the acquisitions made and reinforced sales presence, despite a deteriorated economic situation, especially in Europe.

Consolidated revenue for the 1st half of 2012 amounts to €147.2 million, up 15.0% compared to the 1st half of 2011. This revenue includes a consolidation scope effect of 6.3%, confirming the good contribution over the period of newly acquired companies (BURGUNDY, PEKTOWIN, VALENTINE).

At constant currencies, growth in sales is 11.1%, in light of the favourable impact of the US dollar (exchange rate effects of 3.9%).

The consolidated gross margin amounts to €91.5 million, up 24.1% compared to the 1st half of 2011, higher than the growth in the activity.

This illustrates the change in the product mix towards increasingly technical solutions with high value-added and confirms that the slowdown in growth observed over the historical scope, especially in Europe, concerned products with a lower margin.

The gross margin rate improved 3.2 points at 62.2% compared to 59.0% at 30 June 2011.

Current operating income, up 11.9%, stands at €17.9 million compared to €16.0 million over the 1st half of the previous period. The current operating margin represents 12.2% of revenue compared to 12.5% in the 1st half of 2011 despite the very low contribution to the results for acquired companies, especially PEKTOWIN (integrated on 1st January 2012) and VALENTINE (integrated from 1st April 2012).

Consolidated operating income for the 1st half of 2012 stands at €16.2 million compared to €16.0 million for the 1st half of 2011 and includes €1.7 million in non-current operating expenses primarily linked to:

• €1.2 million in acquisition fees booked as expense in accordance with revised IFRS 3; this amount includes all of the fees linked to the acquisition programme, and in particular €0.5 million for the acquisition of PEKTOWIN (Poland) and €0.3 million for the acquisition of VALENTINE (India);
• €0.5 million in restructuring costs of which €0.3 million concerning the finalisation of the integration process for BURGUNDY (France and Spain) and €0.2 million linked to costs generated by reorganisation of PEKTOWIN activities.

After taking these non-recurring expenses into account, the operating margin stands at 11.0% of revenue.

Net income, Group share amounts to €9.0 million compared to €9.7 million in the 1st half of 2011, and includes tax expense of €4.2 million compared to €4.4 million in the 1st half of 2011.

Shareholders' equity stands at €247.3 million at 30 June 2012 compared to €236.1 million at 31 December 2011.

Financial debt is well under control, despite the acquisitions made over the half-year, with a net debt ratio of 41.2% for financial debt of €102.0 million at 30 June 2012, compared to a ratio of 28.9% at 31 December 2011 and financial debt of €68.2 million.
 
"The operating performance achieved over this 1st half of 2012 confirms the Group's ability to generate quality and profitable growth despite a difficult economic backdrop, especially in Europe", said Thierry LAMBERT, CEO of NATUREX.

"We are moving through the 2nd half of the period with confidence and we rely on our innovation capacity and the quality of our sales network in order to continue our growth strategy, creating value for our customers and investors."

The Company’s Board of Directors, meeting on August 30th, 2012, formally noted the resignation of Mrs Jacqueline DIKANSKY from her director’s position held in NATUREX, and co-opted Mr Olivier DIKANSKY as director for the remainder of the term of Mrs Jacqueline DIKANSKY, namely until the Shareholders’ Meeting called to approve the financial statements for the year ending 31 December 2016. This appointment will have to be ratified by the Shareholders’ Meeting called to approve the financial statements for the year ending 31 December 2013.