TEL AVIV, May 24 (Reuters) - Israeli flavour and fine ingredients maker Frutarom Industries reported a 22 percent rise in quarterly net profit as sales jumped, driven by a wave of acquisitions.
Frutarom said on Tuesday it earned $26.4 million excluding non-recurring expenses in the first quarter, compared with $21.6 million a year earlier.
Revenue surged 32.7 percent to a record $257.7 million, buoyed by 11 acquisitions in 2015. It has bought five more companies in 2016 for a total of $182 million.
“These acquisitions support the realisation of our plans for rapid growth in our core activities while expanding the share of the flavours activity ... and for accelerating our growth and market share expansion in North America and in emerging markets,” said Ori Yehudai, Frutarom’s chief executive.
The quarterly results do not yet reflect efficiency measures Frutarom is taking which are expected to bring operational savings of $20 million-$22 million on an annual basis, he said.
These include closing Frutarom’s central plant in Stuttgart, Germany, by the end of the year and transferring its activity to a more modern plant belonging to Wiberg, a company acquired in January.
Frutarom is aiming for annual sales of at least $2 billion by 2020. (Reporting by Tova Cohen; Editing by Mark Potter)