Company Announcements

Turpaz continues to implement rapid and profitable growth strategy in 2025, alongside leveraging synergies between group companies 

Karen Cohen Khazon, Chairperson and CEO of the company:  "The successful  implementation of the company's  strategy is expected to result in an annual  sales run rate of a quarter of a billion dollars in 2025 ."

CAESAREA, Israel , May 21, 2025 /PRNewswire/ -- The Turpaz Industries group (TASE: TRPZ), which develops, manufactures, markets and sells fragrances, flavors and specialty fine ingredients, today reports record results for the first quarter of 2025, with double-digit growth in all operational and financial lines, and growth in all areas of activity reflecting the success of the group's business strategy to combine organic growth with mergers and acquisitions.

Record results for the first quarter of 2025:

• Record revenues of $60.4 million, growth of 54.7% compared to the corresponding quarter last year, resulting from organic growth of 9.1% and the contribution of merger and acquisition transactions carried out during 2024 and in the first quarter of 2025. The growth trend continues in the second quarter of 2025.
• Adjusted EBITDA increased by 62.7% and amounted to $13.6 million, and stood at a rate of 22.6% of sales - one of the highest in the industry.
• Operating profit jumped by 76.7% and amounted to $9.6 million, following the realization of synergies between acquired companies and the Turpaz group's operations.
• Net profit grew by 63.6% and amounted to $5.4million.
• Strong cash flow from operating activities increased to$7.6million compared to $3.6 million in the same quarter last year.
• During the quarter, Turpaz completed two strategic transactions in the UK and Belgium – AFS and Doucy.

Performance by segments

Revenue in the Taste segment grew by 77% reaching $43.5 million, driven by M&A and organic growth of 6.2%. This growth resulted in an increase in operating profitability to 18.8%.

Revenue in the Fragrance segment grew organically by 3.9% reaching $9.1 million.

Revenue in the Specialty Fine Ingredients segment grew organically by 38.2% reaching $7.7 million. This growth was driven by the successful implementation of product mix expansion and the focus on citrus products and aromatic chemicals into the flavor and fragrance industries.

Turpaz has a strong balance sheet and cash flow and significant cash balances, in addition to extensive financing sources that enable it to implement its integrated growth strategy based on M&A and organic growth.

Continuing the implementation of the acquisition strategy and international growth

During the quarter, the Turpaz group completed two strategic transactions in the UK and Belgium. The AFS transaction in the UK increased the product portfolio and enabled the effective expansion of the group's activities in the UK market. The acquisition of Doucy in Belgium expanded the product portfolio and Turpaz's activities in the sweet flavors sector and enables entry into new markets and customers in the Benelux region.

The two transactions join a series of acquisitions that Turpaz has made in recent years, and continue to strengthen the group's position as a leading global player in the field of flavor, fragrance and specialty fine ingredients solutions.

Karen Cohen Khazon, Chairperson and CEO of the company, stated today:

"We are starting 2025 with record results in all sales and financial indicators in each of our business segments. These results stem from the successful implementation of the group's strategy based on organic growth combined with acquisitions and mergers, while leveraging the synergies between the companies in the group and establishing a quality and dedicated management and workforce around the world.

"This strategy is what brings the Turpaz group to an annual sales run rate of a quarter of a billion dollars in 2025.

"Turpaz continues to expand its global presence and offer its customers a broad and leading portfolio of solutions, while maintaining high profitability and strong cash flow management. We are working determinedly to continue implementing our growth strategy, with the aim of realizing our vision - to be among the ten leading companies in the world in the field of flavors and fragrances."

About Turpaz:

Turpaz Industries is an international company, active in over 65 countries with over 3,500 customers, operating 22 production sites, research and development centers, sales offices around the world and employing 870 people. The company offers a broad portfolio of solutions for the food, beverage, cosmetics, toiletries and chemical industries.

Company website: www.turpaz.co.il

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

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SOURCE Turpaz Industries