Company Announcements

English Conference Call Scheduled at 10am Eastern Time and 5pmIsrael Time

CAESAREA, Israel , May 18, 2026 /PRNewswire/ -- Turpaz Industries Ltd. (TASE: TRPZ), a global company that develops and manufactures thousands of flavor and fragrance extracts, intermediates and specialty fine ingredients and markets and sells them in more than 95 countries around the world, today announced its financial results for the first quarter ended March 31, 2026, demonstrating continued double-digit growth across all key financial metrics and a significant acceleration in its global expansion.

Q1 2026 Financial Highlights

• Revenues grew 38.6% to a record $83.6 million, with organic growth of approximately 9%;
• Adjusted EBITDA increased 42.4% to $19.4 million, representing 23.2% of revenues;
• Net income more than doubled, growing 104.5% to $11.1 million; Non-GAAP net income grew by 48.8% to $11.7 million.
• Current revenue run-rate (as of reporting date) of approximately $380 million following the recent acquisitions in the U.S. and France.

Management Comment

Karen Cohen Khazon, Chief Executive Officer of Turpaz Industries, said, "We started 2026 with continued strong growth and record results, reflecting the strength of Turpaz's growth strategy and our execution capabilities. The combination of strong organic growth together with synergistic acquisitions continues to prove itself as a significant growth engine."

"The recent acquisitions we completed in the U.S. and France represent an important strategic step in expanding our global footprint, strengthening our presence in key markets and segments with high growth potential, primarily fine fragrances and North America."

"The Group's financial strength, together with cooperation with leading global banks and financial institutions, combined with the extensive experience of Turpaz's management team and its dedicated employees, enables us to continue working to expand the Group's operations and generate value for shareholders."

Q1 2026 Summary

The execution of Turpaz's growth strategy, based on a combination of synergistic acquisitions and strong organic growth, continues to support the Group's accelerated growth. In the first quarter of 2026, Turpaz recorded double-digit growth in sales, gross profit, operating profit, adjusted EBITDA and net profit, while improving profitability and continuing to leverage synergies between the companies in the Group.

High Organic Growth of Approximately 9%

Group revenues in the first quarter of 2026 grew by 38.6% to a record $83.6 million, compared with $60.4 million in the corresponding quarter last year. The growth was driven by strategic acquisitions completed during 2025, alongside high organic growth of approximately 9%, reflecting the strength of the Group's core business activity.

As of the date of this report, Turpaz's revenues, together with the companies acquired in the U.S. and France since the beginning of 2026, already reflect an annual revenue run-rate of approximately $380 million, illustrating the step-change in the scale of the Group's global operations.

Gross profit in the quarter grew by 48.9% to $35 million, and gross margin increased to 41.9%, compared with 39% in the corresponding quarter. The improvement in profitability was driven by the continued realization of synergies between Group companies, operational efficiency measures and continued high growth.

Operating profit grew by 33.6% to $12.9 million. Adjusted EBITDA increased by 42.4% to $19.4 million, with adjusted EBITDA margin rising to 23.2% of revenues, among the highest levels in the industry in which Turpaz operates.

Net income in the first quarter more than doubled, increasing by 104.5% to $11.1 million, compared with $5.4 million in the corresponding quarter last year. Non-GAAP net income grew by 48.8% to $11.7 million.

Growth Across All Business Segments

Growth was recorded across all of the Group's business segments. The flavors segment, Turpaz's largest segment, grew by 34.4% and reached revenues of $58.5 million. The fragrances segment continued to deliver particularly strong growth, with a 79.5% jump to revenues of $16.4 million, while the specialty fine ingredients segment grew by 13.8% to $8.8 million, supported by a shift in product mix toward higher-value-added products for the fragrance and flavor industries.

8 M&A Transactions Since the Beginning of 2025

Turpaz continues to accelerate its global expansion and has completed eight M&A transactions since the beginning of 2025 in the U.S., France, England, Belgium, Poland, India and South Africa.

As part of this activity, in early May 2026 Turpaz completed the acquisition of Phoenix Flavors & Fragrances in the U.S. for $95 million, a transaction that significantly expands Turpaz's activity in North America and provides it with a full operating platform in the U.S. in the field of fragrance and flavor extracts. In addition, Turpaz completed the acquisition of 70% of the French company Romessence, which operates in the field of fine fragrance, at the heart of the global fragrance industry in the city of Grasse in southern France.

English Results Conference Call

The Company will be hosting a conference call later today via Zoom, starting at 10am Eastern Time and 5pmIsrael Time. On the call, Ms. Karen Cohen-Khazon, Chief Executive Officer, and Mr. Guy Gill, Executive Vise President and Chief Financial Officer, will review and present the results and will be available to answer investor questions.

To participate in the Zoom conference call, please register at the following link: https://us06web.zoom.us/webinar/register/WN_IA-8JsTlTLep6ih9h7f0xA

Following registration, investors will be sent the link to the conference call which is accessible either via the Zoom app, or alternatively from a dial-in telephone number. If you have an issue with registration, please contact the Turpaz investor relations team, well in advance of the call.

For those unable to participate, the call will be available for replay through the same link, or from a link to the recording on the Turpaz investor relations website, the day following the call.

About Turpaz Industries Ltd.

The Company operates, independently and through its subsidiaries, in three operating segments - the Fragrance segment, the Taste segment, and the Specialty fine ingredients segment. As part of this activity, Turpaz is engaged in research, development, production, marketing, distribution and sale of natural and synthetic sweet and savory taste extracts, seasonings, unique functional solutions for the field of baking, raw materials for the meat and baking industries, special (gluten free) flours, fragrance extracts, used in the production of cosmetics, toiletries, personal care, air care & odor neutralizer products; and specialty fine ingredients which include citrus products and aroma chemicals used in the flavor and fragrance industries, and raw materials for the pharma and fine chemicals industries. The Company's business strategy is based on organic growth at a rate higher than market growth, and successful and systematic implementation of strategic acquisitions.

For more information, please visit Turpaz's website, at: https://www.turpaz.co.il/Investors

International Investor Relations 
Ehud Helft
EK Global Investor Relations
turpaz@ekgir.com 

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SOURCE Turpaz Industries