Naturex Reports Strong 1Q10 Financials

AVIGON, FranceNaturex released financial results for the first quarter 2010, reporting strong growth and excellent margins. Bolstered by the integration of the Ingredients division of Natraceutical Group, revenues were 51.7 million, up 87.6 percent compared to 1Q09. At constant scope and in constant currencies, revenues were up 7.4 percent.

Naturex enjoyed sustained first-quarter growth across all of its business divisions. Food & Beverage now accounts for 58.8 percent of Group sales, Nutrition & Health for 35.7 percent and Personal Care for 1.3 percent. The integration of the Ingredients division of Natraceutical Group has led to a major change in the geographic breakdown of sales, with Europe and Africa now accounting for 52.9 percent of Group activity, North and South America for 35 percent, and the Asia/Pacific region for 12.1 percent.

Naturex's gross margin for the first three months of 2010 was 55.4 percent, which is consistent with the margin generated by the new entity in 2009. Operating income was 5.3 million, namely 10.4 percent of revenues for the quarter. Net of financial expenses and taxes, Group net profit stood at 2.4 million.

Commenting on the figures, Jacques Dikansky, president and CEO and founder of Naturex, said: "The Group's results at the end of March are extremely positive as they confirm both the commercial success of our new entity and a very promising underlying market trend. They also reflect very encouraging margins, particularly since the benefits of the streamlining measures gradually implemented during the integration of the Ingredients division of Natraceutical Group have yet to kick in. We are fully on track to meeting our targets for the year, in terms of both business growth and earnings.