Turpaz Industries reports record results in sales and cash flow from current operations in the third quarter and in the first nine months of the year
The group's sales peaked both in the third quarter of 2023 and in the first nine months of the year. In the third quarter, sales grew by 7% and reached a record of $32.5 million, and in the first nine months of the year they grew by 6.8% and reached a record of $94 million.
Cash flow from current operations also reached a peak and stood at $6.4 million in the third quarter.
The group's solid capital structure, low leverage, cash balance of $19.3 million and debt of $15.9 million as of September 30, 2023, enable the continued implementation of the group's acquisition strategy.
The adjusted EBITDA rate, which is one of the highest in the industry in which the company operates, stood in the third quarter and in the first nine months of 2023 at 23.3% and 21.5% respectively.
Streamlining and synergy processes between the group's companies led to an improvement in profitability in the third quarter.
Turpaz completed the acquisition of 2 companies since the beginning of 2023 - the acquisition of the Hungarian company, Food Base, and the acquisition of the Romanian company, Aromatique Food, and completed 9 acquisitions since its IPO.
HOLON, Israel, Nov. 20, 2023 /PRNewswire/ -- Turpaz Industries group (TASE: TRPZ), which develops, manufactures, markets and sells both directly and via its subsidiaries fragrance, taste and specialty fine ingredients publishes today, its financial statements for the third quarter and the first nine months of 2023 in which record sales and cash flow were recorded.
Karen Cohen Khazon, Chairperson and CEO of Turpaz Industries: "I am proud to present the financial reports of Turpaz Industries for the third quarter of 2023. The reports show record results and strong performances that reflect the ability of the Turpaz Industries group to leverage opportunities in the global markets, even in this challenging time. All the company's plants in Israel and around the world are operating and producing as normal, thanks to the commitment and endless dedication of the company's managers and employees, who work day and night to satisfy the needs of our customers in Israel and around the world. We receive support from our customers, partners and suppliers in the world, who express support and kind words these days."
Turpaz group sales in the third quarter of 2023 grew by 7% and amounted to a record sales of $32.5 million compared to sales of $30.3 million in the corresponding quarter last year.
In the division according to segments, in the third quarter of 2023, sales from the Fragrance segment grew by 27.5% to 8.5 million dollars compared to 6.7 million dollars in the corresponding quarter last year. Sales from the Taste segment during the period climbed by 11.1% to 16.8 million dollars compared to 15.1 million dollars in the corresponding quarter last year. Sales from the Specialty Fine Ingredients segment amounted to 7.2 million dollars compared to 8.5 million dollars in the corresponding quarter last year.
Turpaz group sales in the first nine months grew by 6.8%, and amounted to a sales record of $94 million, compared to sales of $88.1 million in the corresponding period last year.
In the division by segments, in the first nine months of 2023, sales from the Fragrance segment grew by 24.7% to $24.6 million compared to $19.8 million in the corresponding period last year. Sales from the Taste segment in the period climbed by 9.1% and amounted to 48.6 million dollars compared to 44.5 million dollars in the corresponding period last year. Sales of the Specialty Fine Ingredients segment during this period amounted to 20.9 million dollars compared to 23.8 million dollars in the corresponding period last year.
Gross profit in the third quarter of 2023 improved and grew by 8.6% to $13 million (40% of sales) compared to gross profit of $12 million (39.4% of sales) in the corresponding quarter last year. The gross profit of the Turpaz Industries group in the first nine months of 2023 increased by 5% and amounted to $36 million (38.3% of sales) compared to $34.3 million (39% of sales) in the corresponding period last year.
Operating profit in the third quarter of 2023 increased by 4.4% as a result of efficiency measures and amounted to $5.2 million compared to $5 million in the corresponding quarter last year. Operating profit in the first nine months of 2023 is 10% smaller and amounted to $13.1 million compared to $14.5 million in the corresponding period last year.
The company's adjusted EBITDA in the third quarter of 2023 amounted to $7.6 million (23.3% of sales) compared to $7 million in the corresponding quarter last year, and in the first nine months of 2023 to $20.2 million (21.5% of sales) compared to $20.3 million in the corresponding period last year. The adjusted EBITDA rate is one of the highest in the industry in which the company operates.
The net profit in the third quarter of 2023 amounted to 4 million dollars, an increase of 11.5% compared to 3.6 million dollars in the corresponding quarter last year. The net profit in the first nine months of the year decreased by 19.2% and amounted to 9.5 million dollars compared to 11.8 million dollars in the corresponding period last year.
In the third quarter of 2023, the cash flow of the Turpaz group reached a high of $6.4 million and the cash balance amounted to $19.3 million against a debt of $15.9 million.
Turpaz has completed the acquisition of two companies since the beginning of 2023 and has completed nine acquisitions since its IPO in May 2021.
Summary of Turpaz acquisitions in 2023:
In 2023, Turpaz completed 2 successful acquisitions. On August 14, 2023, the group completed the acquisition of the Hungarian company, Food Base for $9.3 million minus 60% of its net debt. Food Base, which was founded in 2004, is engaged in the development, production, marketing and sale of flavor extracts and natural herbal extracts for the food and beverage industry, with an emphasis on convenience food, health drinks and snacks, as well as unique raw materials to the nutritional supplement industry.
On January 9, 2023, the Turpaz group completed the acquisition of the Romanian company, Aromatique Food, which was founded in 2013 and is engaged in research, development, production, marketing, sale and supply of raw materials and savory functional flavor mixtures for the food industry, and sells mainly to the Romanian market for 3.6 million dollars.
The Turpaz group's strategy is based on integrated growth and improving its geographic distribution, through organic growth and through mergers and acquisitions of synergistic activities for the company's activities, whilst leveraging the synergy between the group's companies in sales, procurement, development and compliance with regulatory requirements that contribute to improving profitability.
The Turpaz group operates in accordance with a systematic plan that it developed for the rapid integration of the acquired companies 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 portfolio and customers, and the implementation of the audit and control system of the Turpaz group in the sales system (Cross-selling), research and development, procurement, finances and the business information systems of the acquired company, all in order to quickly exploit the synergies.
About Turpaz
Turpaz was established in February 2011 and operates both directly and through its subsidiaries in the development, production, marketing and sales of fragrance extracts used in the production of cosmetics and toiletries, personal care products and atmospheric application; also, natural and synthetic taste extracts, spice mixes and special flours (gluten-free) used in food and beverage production, unique intermediates for the pharmaceutical industry and the agro and fine chemical industry and citrus products and aromatic chemicals for the flavor and fragrance industry.
The Turpaz group has a wide variety of products, the result of in-house development, which are produced in its factories around the world. As of the publication date of the report, the group develops, manufactures, markets and sells products to more than 2,000 customers in over 40 countries around the world, and operates 14 production sites that include R&D centers, laboratories and sales, marketing and regulatory offices in Israel, the USA, Poland, Belgium, Vietnam, Latvia, Romania and Hungary, where 470 people are employed.
Company website: www.turpaz.co.il
Contact:
Yoni Adini
[email protected].il
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SOURCE Turpaz Industries
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