Naturex Reports Solid Operating Performances for 2012 Nine-Month Period

The Group's positive momentum over this period reflects not only good performances achieved in developed countries despite pressure on consumer spending in Europe but also strong contributions from emerging countries (17% of Group sales with growth of 40.5%).

30 Nov 2012 --- Naturex has announced its consolidated results for the first 9 months of fiscal 2012. Consolidated revenue for the first nine months of 2012 amounted to €223.1 million, up 16.7% from last year's same period (up 11.9%. at constant exchange rates).

The Group's positive momentum over this period reflects not only good performances achieved in developed countries despite pressure on consumer spending in Europe but also strong contributions from emerging countries (17% of Group sales with growth of 40.5%). Through the innovative offering of ingredients and extracts with a high technological content it has developed, Naturex is capable of proposing in the three markets of food & beverage, nutrition & health and personal care customised solutions increasingly based on natural concepts providing sources of differentiation.

This product mix increasingly weighted towards customised solutions of high scientific added value is reflected in the gross margin's growth to €132.2 million for the nine-month period, up 19.1% from one year earlier.

The gross margin as a percentage of sales rose in consequence 1.2 points to 59.2% from 30 September 2011.

Current operating income showed solid growth of 17.1% for the first nine months to reach €26.7 million, despite additional expenses linked to changes in the Group's structure in line with its rapid development. Contributions to Group current operating income by the four companies acquired over the period from the last quarter of 2011 and the first nine months of 2012 (Burgundy, Pektowin, Valentine and DBS) were very marginal.

The current operating margin at 30 September 2012 was 12% of sales, up from 11.9% one year earlier.

Consolidated operating income amounted to €23.9 million, up 5.8% from the same period last year despite non-current operating expenses of €2.8 million that included mainly:

• €1.5 million in acquisition-related costs including notably all costs linked to the acquisition program initiated in October 2011;
• €1.3 million in restructuring/reorganisation expenses concerning mainly operations of Pektowin.

After taking these non-current operating expenses into account, the operating margin was 10.7%.

Net income attributable to the Group for the first nine months of 2012 amounted to €13.7 million, unchanged from the same period in 2011, including a tax expense of €5.9 million. For this nine-month period the net margin was 6.1% compared with 7.1% one year earlier and 6.2% for the 2011 full year.

"Operating results for the first nine months of the year were consistent with first half trends, confirming our capacity to deliver, quarter after quarter, quality and profitable growth through an ambitious strategy for development that combines sustained organic growth and acquisitions with potential for synergies", commented Naturex's Chairman-CEO, Thierry Lambert. "We will pursue this strategy while continuing to focus on supporting customers' projects through our comprehensive and innovative offering, sourcing capacity, technical and scientific know-how and our global sales network."