After an acquisitive year - during 2009 the Israel-based company made three significant acquisitions - sales were down on 2008’s figures, standing at $425.2m compared to $473.3m the year before.
According to the company, the purchase of UK flavour group Oxford, Flavor Specialities Inc in the US, and Chr Hansen’s savoury division in Germany, contributed $25.3m to these sales figures.
Net income for the year was $33.2m compared to $37.3m recorded for 2008.
‘Vigorous’ destocking improves in Q4
Ongoing effects of the economic crisis were cited by the company as reasons behind the drop in sales, in particular, what it referred to as ‘vigorous’ destocking by its customers.
However, according to company, the destocking came to an end during the fourth quarter when performance began to improve.
In the fourth quarter, sales were up 9.9 per cent on 2008’s figures coming in at $108.5m. The year’s acquisitions contributed $8.1m to this figure.
Approximately 6.8 per cent of this increase was down to a weakening of the US dollar against the European currencies and the Israeli Shekel, representing an increase of just over 3 per cent in local currency terms.
Excluding non recurring events, net profit for the period was up 38.5 per cent reaching $7.5m.
Growth rates will return to past levels
According to Frutarom CEO Ori Yehudai, 2009 was challenging but the company is well placed to continue growth now the global market appears more stable.
“We estimate that the stabilization of the global economy in recent months, the moderation in currencies fluctuations, the halt of the destocking trend and the signs of gradual improvement in consumption…will contribute to an improvement in our sales level and to a future return to a growth trend at rates similar to those characterizing our activities in the past,” he said.
The company plans to double sales, therefore reaching approximately $1bn in turnover, in four years by both organic growth and further acquisitions.