Investor Presentation • Mar 20, 2024
Investor Presentation
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March 2024
This presentation was prepared by Turpaz Industries Ltd. (the "Company") for the sole purpose of conveying information regarding the Company and its subsidiaries (together with the Company "Turpaz Group"). This presentation does not constitute, or form part of, an offer to sell, or a solicitation of an offer to purchase any securities of the Company and is intended to provide information only. This presentation is not intended to replace the need to review the Company's full reports to the Securities Authority and the Tel Aviv Stock Exchange Ltd. including, inter alia, the Company's periodic and immediate reports (hereinafter: "Company Reports") prior to making a decision regarding investment in the Company's securities.
In addition, this presentation cannot replace investment consulting by a lawfully licensed investment consultant.
This presentation includes statements data, forecasts, goals and Company plans that are "forward-looking statements", as defined in the Securities Law - 1968, whose occurrence is not certain, and which are not solely in the Company's control.
These forward-looking statements are included, inter alia, in discussions of strategy, objectives, goals, plans, events, future intentions or other information relating to future events or issues whose occurrence is not certain.
By their nature, forward-looking statements involve risk and uncertainty. Whether the forward-looking information occurs or not is affected, inter alia, by risk factors characteristic to the Company's operations and developments in the general environment and external factors which impact the Turpaz Group and its area of activities.
Subject to the requirements of applicable law, the Company does not intend to update any industry information or forward-looking statements appearing in this presentation and is not required to publish any additional presentations for its shareholders in future.
Fragrance, taste, specialty fine ingredients (including citrus products & aroma chemical ingredients)
Continuous growth via M&A and organic growth
Talent Appointments Q1 2024: Global Master Perfumer Global Senior Flavorist Global Procurement Manager
Adj. EBITDA - Adjusted to reflect EBITDA without non-recurring expenses or income. *Unaudited internal data
| Record Sales Result \$ 127.4M + 7.4% (2.9%) Organic |
Gross Profit \$ 49.6M + 4.1% |
Adj. EBITDA / Margin \$ 27.8M / 21.8% +3.3% |
|
|---|---|---|---|
| Cash Flow from Operations \$ 14.7M |
Positive Cash Balance \$ 23.8M |
Net Profit \$ 12.9M |
Destocking trend among the Taste segment customers ended during Q4 2023 - back to growth
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We develop tailored-maid solutions combining fragrances, flavors and Specialty fine Ingredients under one roof
House-hold Scented Candles Odor Neutralizers
Home Fragrances Makeup Body Care & Toiletries
Confectionery Soft Drinks Bakery
Flavors for CBD Products Animal Feed Dairy
Taste
Oral Care Fruits Energy Bars
Pharma intermediates
Dietary Supplements
Citrus
Aroma-Chemical
Coffee Ice Cream Herbs & Spices
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Above-industry Growth Continue Margin Expansion Continue Acquisitions Strategy
Strengthening research, development & innovation systems
Improving supply chain and production processes
Expanding global marketing & sales network deployment
Cross-selling within the group
Fast response to customer needs based on experience
Enhance synergies among the group
| In K US \$ / % | 2022 | 2023 |
|---|---|---|
| Sales | 118,556 | 127,355 |
| Gross Profit | 47,659 40.2% |
49,613 39.0% |
| Operating Profit* | 18,536 15.6% |
18,180 14.3% |
| Adjusted EBITDA | 26,865 22.7% |
27,761 21.8% |
14 (*) Adjusted to reflect operating profit, net of one-off profit from the fire event.
| In K US \$ / % | 2023 2022 |
||
|---|---|---|---|
| Sales | +10.2% 59,325 65,361 |
||
| Operating profit* | 9,449 8,873 15.0% 14.5% |
||
| Organic | (3.9%) | ||
| Acquisitions | Aromatique, Food Base | ||
| Highlights | Sales were mainly affected by destocking among customers, which ended by the end of Q4 2023 |
(*) Adjusted to reflect operating profit, net of one-off profit from the fire event.
18 (*) Adjusted to reflect operating profit, net of one-off profit from the fire event.
| K US \$ | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|
| Revenues | 52,730 | 85,334 | 118,556 | 127,355 |
| Gross Profit | 21,824 | 34,728 | 47,659 | 49,613 |
| GP% | 41.4% | 40.7% | 40.2% | 39.0% |
| R&D Expenses | 862 | 1,949 | 3,607 | 4,923 |
| Sales & Marketing Expenses | 3,848 | 6,274 | 10,016 | 10,358 |
| Management & General Expenses | 6,625 | 10,257 | 15,055 | 15,695 |
| Other Expenses (Income) | 304 | 208 | (8,349) | 457 |
| Operating Profit | 10,185 | 16,040 | 27,330 | 18,180 |
| Operating Profit % | 19.3% | 18.8% | 23.1% | 14.3% |
| Adj. Operating profit (*) | 10,185 | 16,040 | 18,536 | 18,180 |
| % Adj. Operating Profit (*) |
19.3% | 18.8% | 15.6% | 14.3% |
| Net Profit | 8,131 | 12,812 | 21,331 | 12,894 |
| EBIDTA | 13,523 | 20,021 | 35,039 | 27,277 |
| Adjusted EBITDA (**) | 14,025 | 20,475 | 26,865 | 27,761 |
| Adjusted EBITDA % | 26.6% | 24.0% | 22.7% | 21.8% |
| Cash flow from operation | 11,151 | 12,283 | 31,938 | 14,709 |
The change is mainly due to receipts received from the insurance for the fire event in Dec
2022. (*) Adjusted to reflect operating profit, net of one-off profit from the fire event.
(**) Adj. EBITDA - Adjusted to reflect EBITDA without non-recurring expenses or income.
| K US \$ | 31.12.2022 | 31.12.2023 |
|---|---|---|
| Assets | ||
| Current Assets | 89,913 | 79,782 |
| Non-Current Assets | 123,493 | 142,246 |
| Total Assets | 213,406 | 222,028 |
| Liabilities & Equity | ||
| Current Liabilities | 46,674 | 41,463 |
| Non-Current Liabilities | 63,207 | 63,238 |
| Equity | 103,525 | 117,327 |
| Total Liabilities and Equity | 213,406 | 222,028 |
| Ratio | ||
| Working Capital to Sales | 26.1% | 28.6% |
| Cash and Cash Equivalent | 35,675 | 23,817 |
| Net Cash (Net Debts)(*) | 19,107 | 9,165 |
| Equity to total balance sheet | 48.5% | 52.8% |
Turpaz's strong equity structure, low leverage, cash flow from operations, funding availability and the strengthening of management and managerial infrastructures enable the implementation of the group's combined growth strategy.
(*) Debts = Short and long-term loans from banks and other.
Projected to reach USD 43.6 billion by 2032*
F&F Market
Customers
~40% Large CPGs
~60% Mid-Sized, Small, Private Label CPGs
4 Main F&F players focus mainly on large multinational customers
3 types of customers: large multinational, mid level and small local businesses
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Consumer base is growing
Impact
• More opportunities in high-growth markets
• Fully leverage expanded offering
Living longer and more consciously
Demand for naturals, wellbeing, transparency and clean label products
E-commerce, Hybrid work, self-care and localization gain importance
• Innovation (eg. Biotech and upcycling) • Operations (eg. low carbon footprint factories)
• Accelerated digital enablement
Global F&F company with high profitability
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Dividend distribution for 2023 - US\$ 4M
Double digit growth based on organic growth and M&A
Supplying to all customers (SMB) - ONE-STOP SHOP solutions, via customer intimacy
Operating in a growing industry that benefits from positive drivers that support continued growth
Cash and banks fund growth and acquisitions strategy
Management with extensive experience
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Free accounts include 100 API calls/year for testing.
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