Turpaz Group's revenues increased by 53%, reaching record high of USD 46.8 million; adjusted EBITDA increased by 65%, reaching a record level of USD 9.9 million in the second quarter of 2024

Turpaz Group's revenues increased by 53%, reaching record high of USD 46.8 million; adjusted EBITDA increased by 65%, reaching a record level of USD 9.9 million in the second quarter of 2024

PR Newswire

TEL AVIV, Israel, Aug. 15, 2024

The cash flows from operating activities, which amounted to USD 11.3 million in the first half and USD 7.7 million in the second quarter, together with the Group's robust equity structure, enabled the continued execution of Turpaz mergers and acquisitions strategy.

Since the beginning of 2024, Turpaz completed 2 strategic acquisitions, which expanded its global presence - Sunspray (in South Africa) and Clarys Willich (in Belgium and Germany)

With the expansion of the Company's activities and its acquisitions around the world, Turpaz sales in the global markets have reached 84% of its total sales

The core businesses - the Scent and Taste segments, which constitute 90% of sales, achieved a double-digit organic growth

Since it became a public traded company, Turpaz is ahead of the target it set itself of doubling the Company every 4 years

Karen Cohen-Khazon, CEO and Chairperson of Turpaz Industries' Board of Directors: "We are proud to continue delivering record results in sales, gross profit, operating income and adjusted EBITDA, which reflect the execution of our combined growth strategy - organic growth with mergers and acquisitions. The robust growth, alongside an improvement in profitability, highlight our ability to successfully integrate our recent acquisitions and leverage the synergies between our Group companies. We continue to assess and promote further acquisitions from across the world, which are synergetic to our operations, while expanding our global presence and maximizing the value we provide to our customers across the world."

TEL AVIV, Israel, Aug. 15, 2024 /PRNewswire/ -- Turpaz Industries Group (TASE: TRPZ) a global leading company in the field of development, manufacturing and marketing of flavor and fragrance extracts, functional ingredients and specialty fine ingredients for the food, beverage and the personal care industries, today publishes its results for the second quarter and first half of 2024, and presents organic and inorganic growth in accordance with the Company's strategy, as well as an improvement in profitability thanks to streamlining steps and the utilization of the synergies between the Group's activities. 

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Q2 2024 results:

In the second quarter of 2024, Turpaz Group's revenues increased by 52.7% and amounted to a record high of USD 46.8 million, compared to sales of USD 30.6 million in the corresponding quarter last year. The increase stems both from organic growth in the Group's core businesses - the Taste and Scent segments, at a rate of 9.5% and 10.1%, respectively, and from the acquisition of Food-Base in Hungary, Sunspray in South Africa and the Clarys & Willich group in Germany and Belgium.

Gross profit hit record levels and achieved growth of 61%, reaching USD 18.1 million compared to gross profit of USD 11.2 million in the corresponding quarter last year.

Operating income reached record high and amounted to USD 5.9 million in the second quarter of 2024, a growth of 60.6% compared to USD 3.7 million in the corresponding quarter last year. The increase and the improvement in operating income stems mainly from an increase in sales and the steps taken to increase efficiency and synergies that were well reflected in the second quarter of 2024. Adjusted EBITDA also reached record levels, growing by 65% to USD 9.9 million compared to USD 6 million in the corresponding quarter last year.

The revenues of the Taste segment, which is the largest operating segment (73% of the Group's sales) increased by 118% and reached USD 34.2 million - generating an operating income of USD 5.9 million, and the revenues of the Scent segment (19% of the Group's sales) increased by 10% and reached USD 9 million - generating an operating income of USD 2.3 million.

Net income increased by 36.7% and amounted to USD 3.4 million, compared to a net income of USD 2.5 million in the corresponding quarter last year; the cash flow from operating activities in the quarter amounted to USD 7.7 million.

H1 2024 results:

In the first half of 2024, Turpaz Group's revenues increased by 39.4% and amounted to a record high of USD 85.8 million, compared to sales of USD 61.5 million in the corresponding half of last year. The increase stems both from organic growth in the Group's core businesses - the Taste and Scent segments, at a rate of 10.2% and 10.6%, respectively, and from the acquisition of Food-Base in Hungary, Sunspray in South Africa and the Clarys & Willich group.

Turpaz Group's sales on a pro forma basis for the first half of 2024 amounted to USD 97 million.

Gross profit hit record levels and achieved growth of 41%, reaching USD 32.5 million compared to gross profit of USD 23 million in the corresponding half of last year.

In the first half of 2024, operating income amounted to USD 11.4 million - a 44.9% growth - compared to USD 7.8 million in the corresponding half last year. The increase and the improvement in operating income stems mainly from an increase in sales and the steps taken to increase efficiency and synergies that were well reflected in the second quarter of 2024. Adjusted EBITDA also reached record levels, growing by 45% to USD 18.3 million compared to USD 12.6 million in the corresponding half of last year.

In the first half of 2024, the revenues of the Taste segment, which is the largest operating segment (68% of the Group's sales) increased by 85% and reached USD 58.7 million - generating an operating income of USD 10.3 million, and the revenues of the Scent segment (21% of the Group's sales) increased by 10.3% and reached USD 17.8 million - generating an operating income of USD 4.9 million.

Net income increased by 22.1% and amounted to USD 6.7 million, compared to a net income of USD 5.5 million in the corresponding half last year.

Turpaz's strong equity structure, net debt coverage ratio of 1.1, cash flows from operating activities amounting to USD 11.3 million in the first half of 2024 and USD 7.7 million in the second quarter of 2024, the backing from leading financial institutions in Israel and across the world, the enhancement of management and the implementation of managerial infrastructures are expected to enable Turpaz the continued implementation of the Group's combined growth strategy, which is based on organic growth and mergers and acquisitions, which are synergistic to the Group's activity. 

During the reporting period, Turpaz engaged in an agreement for the provision of a loan from a European banking corporation, at the total amount of up to EUR 25 million, which will be used mainly to finance the acquisitions and growth strategy, working capital and investments in property, plant and equipment.

Since the beginning of 2024, Turpaz completed two strategic acquisitions, which continued the Group's global expansion trend - the acquisition of Sunspray in South Africa, which has been consolidated with the Group's results since February 2024, and the acquisition of the Clarys & Willich group in Belgium and Germany, whose results have been consolidated with the Group's results as from the second quarter of 2024. These acquisitions broadened the Group's global presence and sales. As of the publication date of this report, Turpaz completed ten acquisitions since its issuance on the Stock Exchange in May 2021.

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About Turpaz:

Turpaz is a global group, which develops, manufactures and markets taste and scent solutions and specialty fine ingredients for the food, beverages, pharma and personal care industries. With over 3,000 customers in 60 countries, Turpaz operates 17 production sites and research and development centers across the world, and employs approx. 800 employees.

Company website: www.turpaz.co.il

Contact:
Yoni Adini, General Counsel
yoni.adini@turpaz-group.com

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SOURCE Turpaz Industries