Naturex Sales up 13.4% in First Half

3 Sep 2013 --- Naturex, the global leader in speciality plant-based natural ingredients, announces consolidated results for the 2013 first-half. Maintaining the positive momentum of FY 2012, first half revenue remained on track in 2013, gaining 13.4% at constant exchange rates (excluding a negative currency effect of 0.8%), with 11% from organic growth.

This performance benefited in particular from the first measures to optimise the Group's marketing and sales approach. Changes in Group structure contributed an additional gain of 2.4%, mainly from the business of DBS acquired in 2012 whose cranberry-extract based product, Pacran, achieved excellent performances for the period within the Natlife range.

The consolidated gross margin amounted to €100.9 million, up 13.6% from the same period in 2012, slightly outpacing revenue, reflecting efforts to increase the weight of differentiated high value-added products in the portfolio. As a percentage of sales the gross margin rose marginally to 60.9% from 60.4% at 30 June 2012, highlighting the favourable product mix effect.

Current operating income, up 6.7%, rose to €19.9 million from €18.7 million for the first half of the previous year. The current operating margin of 12% remained in line with the level achieved at 31 December 2012.

This performance reflects the reinforcement of sales teams, R&D and support functions within the framework of ongoing reorganisation measures initiated by the Group in the previous period and from new acquisitions that, with the exception of DBS, have not yet contributed in this period to operating profit.

Consolidated net operating income came to €19.3 million, up significantly from the 2012 first half (+14%) and including €0.5 million in non-current operating expenses. This latter item included both acquisition-related expenses recognised in accordance with Revised IFRS 3 and restructuring expenses linked to Pektowin's integration. For the 2012 first half, these other non-current operating expenses came to €1.7 million.

After taking these non-current operating expenses into account, the operating margin came to 11.7% compared to 11.5% in last year's first half.

Net borrowing costs came to €2.9 million compared to €2.4 million for the same period one year earlier. This includes mainly interest and expenses from financing lines while other financial income and expense represented a net charge of €1.1 million.

Net income attributable to the Group reached €10.1 million in the first half compared to €9.7 million one year earlier and after a tax charge of €5.2 million versus €4.3 million for the last year's same period.

At 30 June 2013, net debt amounted to €124.9 million compared to €116.9 million at 31 December 2012 representing gearing of 46.7% and 2.3 times EBITDA.

Growth is expected to be less robust in the second half due to the high comparison base with the same period in 2012. Furthermore, Group restructuring measures will continue to marginally impact current operating income.

"Performances in the 2013 first half were achieved through synergies from our core strengths of strong sourcing capacity, technical, scientific and quality expertise combined with our capacity for constant renewal to propose customers differentiated concepts adapted to their expectations and trends in our markets" commented Naturex's Chairman-CEO, Thierry Lambert. "Leveraging these achievements, our teams throughout the world remain focused on pursuing our strategy for development based on sustained organic growth combined with targeted external growth offering synergies through both straightforward acquisitions and collaborative undertakings (equity interests or joint ventures)."