Go

Breaking News on Supplements & Nutrition - North America EU edition

All feeds

Headlines > Industry

Naturex takes hit from energy

By Dominique Patton, 18-Oct-2005

Related topics: Phytochemicals, plant extracts

Energy costs and restructuring have hit operating profits at French plant extracts producer Naturex, causing a 10.5 per cent drop to €2.2 million for the first half of the year.

Thierry Lambert, one of the directors of the firm, told NutraIngredients.com that the sharp rise in energy costs will eventually be passed on to customers as the impact so far had been 'brutal'.

The firm that supplies both food products and supplements also encountered higher costs as it hired new management to oversee its expansion following the acquisition of California-based Pure World.

"When you move from a company with €35 million in sales to €50 million you need to adapt the structure and strengthen management," he said.

A glimpse at the third quarter turnover suggests that the US firm is already making an impact, growing sales from €8.7 million to €15.9 million.

The company is however also showing good organic growth, with sales over the first six months up 6.9 per cent to €18.7 million.

Net income for this period reached €1.6 million, a 19.4 per cent increase on the previous year.

Naturex is benefitting from strong demand from the nutraceuticals sector, with sales from this sector increasing by more than 15 per cent on the prior year.