Naturex: Sustained Growth Despite Negative Currency Effect
08 Nov 2013 --- Naturex, the global leader in speciality plant-based natural ingredients, announces its consolidated revenue for the first nine months of fiscal 2013. Consolidated revenue for the first nine months of 2013 came to €242.6 million, up 8.7% from last year's same period.
At constant exchange rates, sales rose 10.9% with 8.6% in organic growth and 2.3% from changes in
Group structure (business of Decas Botanical Synergies consolidated on 19 September 2012).
Foreign exchange trends had a negative impact in the period, particularly in the 2013 third quarter,
reflecting the depreciation of several currencies versus the euro including the US and Australian
dollars and selected emerging country currencies (Brazil, Mexico, China, Russia, India, etc.).
On that basis, third-quarter sales at constant exchange rates rose 6% in relation to particularly strong
sales in the same quarter in 2012.
Good performances in three markets
- Food & Beverage had sales of €141.6 million for the first nine months, up 1.6% at constant exchange rates. Despite a high comparison base from the 2012 third quarter, sales performances in this market were positive particularly in fruit and vegetable powders range where growth offset the slowdown of the distribution activity in Australia.
- Nutrition & Health, largely focused on the US market, maintained strong growth with sales of €83.5 million, up 27.3% at constant exchange rates. In the 2013 third quarter, the NAT activ range performed well while the clinically substantiated NAT life range of extracts has been strengthened by cranberry extracts originating from the DBS acquisition.
- Personal Care, that represents 1.8% of Group revenue, had sales of €4.3 million, up 21.6% at constant exchange rates for the first nine months of 2013. Efforts to rationalize the line of extracts specially formulated for cosmetic applications is starting to produce results while the unveiling of the NAT oleis™ pure botanical oils range in Paris in September and in Bangkok in October met with a very positive response by our international customers.
- Toll Manufacturing revenue came to €13.2 million, gaining 30.1% at constant exchange rates despite slower sales in the 2013 third quarter resulting from a very high comparison base from the same quarter in 2012.
Good resilience in mature markets and positive momentum in emerging countries
All geographic regions delivered good growth, both in mature markets still affected by a difficult economic environment in Europe, and emerging markets with continuing momentum that accounted for 17.9% of Group sales for the 2013 nine-month period and 21.1% for the 2013 third-quarter.
- The Europe/Africa region had revenue of €113.9 million, up 7.9% at constant exchange rates from the same period in 2012. This level furthermore confirms the good contribution from toll manufacturing as well as positive signs of recovery in selected European countries.
- The Americas region, with sales up 13.3% at constant exchange rates to €98.5 million, remains driven by strong contributions from sales to the US, despite a marginal slowdown in the third quarter reflecting the seasonality effect on the NAT life range compared with the same period in 2012. Sales in Latin America remained at good levels even though significantly impacted by the depreciation of selected currencies in the 2013 third quarter.
- The Asia/Pacific region had growth of 14.6% at constant exchange rates with sales of €30.2 million. Asian countries were particularly dynamic in the third-quarter, despite a significant currency effect and now account for 53.3% of the region's sales. The Pacific region has been shifting its focus to developing the range of Naturex solutions in order to offset the slowdown in the distribution of ingredients in Australia.
"Since the year's start we have achieved excellent gains for sales in each region where we operate, despite uncertainties linked to the global economic environment, commented Naturex's Chairman-CEO, Thierry Lambert. “In line with expectations, due to adverse effects of trends for certain currencies and a less favourable comparison base, the pace of expansion in the 2013 third quarter was slightly less sustained than in the first half. With growth prospects driven by our focus on scientific innovation and the dynamism of our sales network, combined with a selective acquisition strategy, we can look to the future with confidence."
