Turpaz sales in the fourth quarter grew by 9.3% and amounted to a record of 33.3 million dollars, and the adjusted EBITDA, whose rate (22.7% of sales) is one of the leaders in the industry, grew by 15.1% and amounted to 7.6 million dollars
- Revenues in 2023 grew by 7.4% to a record of 127.4 million dollars, and the adjusted EBITDA, whose rate (21.8% of sales) is one of the leaders in the industry, grew by 3.3% to 27.8 million dollars
- The gross profit in 2023 increased by 4.1% and amounted to 49.6 million dollars, and in the fourth quarter of 2023 increased by 1.9% and amounted to 13.6 million dollars
- Cash of 23.8 million dollars
- Turpaz has completed the acquisition of 3 companies since the beginning of 2023 and a total of 10 acquisitions since its IPO in May 2021
HOLON, Israel, March 20, 2024 /PRNewswire/ -- Turpaz Industries (TASE: TRPZ), which develops, manufactures, markets and sells both directly and via its subsidiaries fragrance, taste and specialty fine ingredients, publishes today, its financial results for 2023 and the fourth quarter of the year.
Karen Cohen Khazon, Chairperson and CEO of Turpaz Industries: "Turpaz has a strong balance sheet, high cash flow from current operations, cash in hand, access to funding sources and high-quality and broad management that support the continued implementation of our growth strategy that combines synergistic acquisitions into the company's operations at the same time as organic growth.
I am happy to announce that we have recently recruited a number of leading experts with a wealth of knowledge and experience from leading international companies in the flavor and fragrance industry, in order to strengthen our global capabilities in development, in technology and in meeting the needs of our customers, while strengthening the global position of the group, strengthening the commercial capabilities, and deepening the relationship with our customers and communication with new customers".
Turpaz presents record results in the fourth quarter of 2023
In the fourth quarter of 2023, Turpaz revenues grew by 9.3% and amounted to a record of 33.3 million dollars compared to revenues of 30.5 million dollars in the corresponding quarter last year. The increase is due to acquisitions completed during 2022 and 2023 and organic growth.
The Taste segment grew by 13.3% to 16.8 million dollars, the Fragrance segment grew by 5.1% to 8.1 million dollars and the Specialty Fine Ingredients segment grew by 6.2% to 8.5 million dollars.
The gross profit increased by 1.9% compared to the corresponding quarter last year, to 13.6 million dollars and the adjusted operating profit (excluding one-time profit from a fire incident) grew by 27.2% compared to the corresponding quarter last year, to 5.1 million dollars.
The adjusted EBITDA in the quarter, which is 22.7% and is one of the highest in the industry in which Turpaz operates, grew by 15.1% compared to the corresponding period last year, and amounted to 7.6 million dollars. The adjusted net profit (excluding a one-time profit from a fire incident) in the quarter increased by 21.7% compared to the corresponding quarter last year, and amounted to 3.4 million dollars.
Turpaz presents record results in 2023
In 2023, Turpaz revenues grew by 7.4% and amounted to a record of 127.4 million dollars, compared to revenues of 118.6 million dollars in the corresponding period last year.
The revenues from the Taste segment grew by 10.2% compared to the corresponding period last year, and amounted to 65.4 million dollars, and the revenues from the Fragrance segment grew by 19.2% compared to the corresponding period last year, and amounted to 32.8 million dollars. In the segment of Specialty Fine Ingredients, a 7.5% decrease in revenues was recorded compared to the corresponding period last year, which is mainly due to the continuation of the trend of inventory reduction due to the increase in interest rates globally and the economic uncertainty in the markets.
The gross profit increased by 4.1% compared to the corresponding period last year, to a record of 49.6 million dollars, and the adjusted operating profit (excluding one-time profit from a fire incident) decreased by 1.9% compared to the corresponding period last year, and amounted to 18.2 million dollars.
The adjusted EBITDA in 2023, whose rate is 21.8% and is one of the highest in the industry in which Turpaz operates, grew by 3.3% compared to the corresponding period last year, and amounted to 27.8 million dollars. In 2023, the Turpaz Industries group presented an adjusted net profit (excluding one-time profit from a fire incident), which amounted to 12.9 million dollars, a decrease of 11.4% compared to the same period last year.
The company has cash in the amount of 23.8 million dollars. Following the impressive financial results, in March 2024, the Turpaz Board of Directors approved the distribution of a dividend to the shareholders to the amount of 4 million dollars, which is NIS 0.15 per share.
With the publication of the financial results, Karen Cohen Khazon, Chairperson and CEO of Turpaz Industries stated that "in 2023 and in the fourth quarter, Turpaz achieved new records in sales, gross profit and adjusted EBITDA. Turpaz has a strong balance sheet, high cash flow from current operations, cash in hand, access to funding sources and high-quality and broad management that support the continued implementation of our growth strategy. We have recently recruited a number of leading experts with a wealth of knowledge and experience from leading international companies in the flavor and fragrance industry, in order to strengthen our global capabilities in development, in technology and in meeting the needs of our customers. All this, while strengthening its global position and continued geographic expansion in accordance with the group's growth strategy."
"Turpaz aims to continue realizing its growth strategy through acquisitions and mergers and organic growth. Accordingly, the company raised credit in the first quarter of 2024 in the amount of 33 million euros, of which 14.1 million dollars were used to purchase Sunspray and the balance will be used to finance future acquisitions."
Implementation of the integrated growth strategy
The Turpaz group's strategy is based on integrated growth both through mergers and acquisitions of synergistic activities and through organic growth. The Turpaz group works to integrate and coordinate the activities of the group's companies in the areas of sales, procurement, development and compliance with regulatory requirements, which improve the geographic distribution of Turpaz and contribute to improving the overall profit and profitability of the group.
The Turpaz Group implements a systematic plan that it developed for the rapid integration of each acquired company into the group and the strengthening of the global management, which includes, among other things, the preservation of the existing management of the acquired companies and their integration as part of the Turpaz management, the strengthening of the product and customer portfolios and the implementation of the controls and control system of the Turpaz group in the sales system (cross-selling), research and development, procurement and finances of the acquired companies, with the aim of bringing about a quick and effective exploitation of the synergies.
About Turpaz:
Turpaz was established in February 2011 and operates independently and via its subsidiaries in the development, production, marketing and sales of fragrances used in the production of cosmetics and toiletries, personal care products and atmospheric application; as well as natural and synthetic flavor solutions, spice mixes and special flours (gluten-free) used in food and beverage production; specialty fine ingredients for the pharmaceutical, agro and fine chemical industries; and citrus products and aroma chemicals for the flavor and fragrance industry.
The Turpaz group has a wide and diverse portfolio of products, the result of in-house development, which are produced in its factories around the world. As of the date of publication of the report, the group develops, manufactures, markets and sells products to more than 2,650 customers in more than 60 countries around the world, and operates 16 production sites, R&D centers, laboratories and sales, marketing and regulatory offices, in Israel, the USA , Poland, Belgium, Vietnam, Latvia, Romania, India, Hungary and South Africa, where altogether 730 employees are employed.
Company website: www.turpaz.co.il
Contact:
Yoni Adini
Yoni@turpaz.co.il
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SOURCE Turpaz Industries
