The Tel Aviv-based company saw sales rise to €151 million in 2004, up from €107 million in 2003. Net profit nearly doubled from €6.17 million to €12 million.
"The excellent results are due to the double digit organic growth in core activities, the successful integration of the Flachsmann activities acquired by Frutarom in 2003; and our focus on leveraging the cross selling possibilities from the recent acquisition of the Food Systems activity from International Flavors & Fragrances," said Frutarom's CEO Ori Yehudai.
The Fine Ingredients Division produces citrus oils, specialties and derivatives; synthetic and natural aroma chemicals, including pyrazines and thiazoles; botanicals, flavour regulated botanicals, and standardised nutraceutical extracts, as well as stabilizers, emulsifiers and speciality chemical applications such as sunscreen agents.
The company reported that the Fine Ingredients Division grew through its continued focus on developing innovative value-added products with higher than average margin. On top of that is also said that the ongoing improvement in efficiencies and synergies also contributed to the growth.
However, it also said that margins have proved to be higher in its flavours division, which is why expansion has continued to focus on the food industry.
Aiming to become one of the top ten flavour players, an ambition largely fed through an aggressive acquisition strategy, earlier this year Frutarom announced plans to seek a listing on the London Stock Exchange to raise funds.
The Israeli firm has openly said for a long time that it planned to float shares on an overseas exchange, in addition to the Tel Aviv Stock Exchange (TASE), in order to fuel new purchases.
"The company intends to use the proceeds to finance future strategic acquisitions, as part of Frutarom's growth strategy and to refinance the cost of the recent acquisition of the European food systems business of IFF," said the group in January, operating in the €5 billion global flavours market.
Reflecting the firm's hunger, in August last year Frutarom completed the €30 million acquisition of International Flavours & Fragrances (IFF) fruit preparation operations in Europe, including Germany, Switzerland and France.
Looking forward to the next three to four years, Frutarom confirmed its ambitious strategy this week announcing it is looking to more than triple turnover to $ 500 - 600 million by 2008, through acquisitions and "accelerated growth in core activities".