Naturex Reports “Promising” Start to the Year

30 May 2013 --- Naturex, the global leader in speciality plant-based natural ingredients, announces its consolidated results for the 2013 first quarter. Consolidated revenue for the 2013 first quarter amounted to €83.2 million, up 13.2% compared to last year's same period.

At constant exchange rates (excluding a 1.2% negative currency effect), sales grew 14.4%. This included organic growth of 12.5% plus 1.9% from acquisitions (Valentine and DBS). The consolidated gross margin amounted to €50.1 million, up 17.5% from the 2012 first quarter, reflecting a positive product mix that benefited from the development of value-added offerings.

Against the backdrop of rapid growth, Naturex's current operating margin remained steady in relation to the 2012 first quarter at 12%, despite the rise in staff costs and external expenses linked to Group reorganisation measures in 2012 that will weigh on 2013 full-year results on an incremental basis, as well as the still limited contribution of companies integrated in 2011/2012:

• Current operating income in the 2012 first quarter rose 13.5% to reach €10 million;

• Non-current operating expenses amounted to €0.3 million, down from €1.2 million in last year's first quarter. These expenses represent mainly Pektowin restructuring costs as well as acquisition-related costs;

• After these non-current expenses, consolidated net operating income came to €9.8 million, a 27.8% increase on last year's first quarter for an operating margin of 11.7%, up from 10.4% one year earlier.

Net borrowing costs amounted to €1 million compared to €1.3 million in the 2012 first quarter. Other financial income and expenses amounted to €1.2 million, up from €0.1 million for the same period last year.

Net income attributable to the Group amounted to €6.7 million, up from €4.2 million one year earlier after a €3.2 million tax charge compared with €2.3 million for the same period last year. The net margin for the quarter was 8%, up from 5.8% in the 2012 first quarter.
 
"This promising start to the year reflects our continuing efforts to maximise organic growth and optimise our operating profitability over the medium term" commented Naturex's Chairman-CEO, Thierry Lambert. "Over the following quarters, we will pursue our strategy for sustainable organic growth creating value and continue to explore promising acquisitions with potential for synergies, by combining our scientific and technical know-how, significant sourcing capacity and commercial expertise, to offer our international customer base an increasingly innovative product offering.”