Turpaz Industries (TASE: TRPZ), a leading global company that develops, manufactures, markets, and sells fragrances, flavor solutions, and specialty fine ingredients, today reported record results for the first half and second quarter of 2025, with double-digit growth across all operational and financial metrics and growth in all business segments, reflecting the success of the group’s strategy of combining organic growth with mergers and acquisitions.
Karen Cohen Khazon, CEO and Chairperson of the Turpaz group: “I am pleased to present an excellent half-year and quarter with record results and continued growth in both revenue and profitability. The strong growth trend is intensifying in the third quarter of 2025, and we estimate that the annual sales run rate will reach 1 billion NIS. These achievements are the result of the successful implementation of the group’s growth strategy, which combines strong organic growth with mergers and acquisitions, while leveraging the synergies among the group’s companies.”
Record results for the first half of 2025:
The Turpaz group’s sales in the first half of 2025 grew by 44.3%, reaching a record $123.8 million, compared with $85.8 million in the same period last year. The increase was driven both by double-digit organic growth of 11.6% and by acquisitions.
Gross profit reached a record, growing by 48.5% to $48.2 million (39% of sales), compared with $32.5 million (37.9% of sales) in the same period last year.
Operating profit totaled $19.6 million in the first half of 2025, an increase of 72.1% compared with $11.4 million in the same period last year.
A record was also set in adjusted EBITDA, which grew by 54.4% to $28.3 million (22.8% of sales), compared with $18.2 million (21.3% of sales) in the same period last year.
Net profit surged by 57.7%, reaching $10.6 million, compared with $6.7 million in the same period last year.
By business segment, in the first half of 2025, sales in the Taste segment, the group’s largest segment (72.5% of total sales), grew by 52.7% to $89.7 million. This increase was driven both by strong organic growth of 7.6% and by acquisitions. The sales growth, combined with operational efficiencies and the leveraging of synergies, led to an increase in operating profit, which rose to $17.8 million (19.9% of sales) in the first half, compared with $10.3 million (17.5% of sales) in the same period last year.
Sales in the Fragrance segment (15.1% of total sales) grew by 5.2%, reaching $18.7 million, driven by 3.1% organic growth, with an operating profit of $5 million.
Sales in the Specialty Fine Ingredients segment reached $15.4 million, an increase of 65.8% compared with the same period last year, primarily due to 65.3% organic growth, following a change in product mix, the introduction of aromatic chemicals and citrus products, and process improvements. The operating profit for this segment was $1.1 million.
Record results for the second quarter of 2025:
The Turpaz group’s sales in Q2 2025 grew by 35.6%, reaching a record $63.4 million, compared with $46.8 million in the same quarter last year. The growth was driven both by double-digit organic growth of 14.2% and by acquisitions.
Gross profit reached a record, growing primarily due to the sales increase, rising 36.7% to $24.7 million (39% of sales), compared with $18.1 million (38.7% of sales) in the same quarter last year.
Operating profit grew by 67.9% to $9.9 million in Q2 2025, compared with $5.9 million in the same quarter last year. The increase and improvement in operating profit were driven both by higher sales and by efficiency and synergy measures.
A record was also set in adjusted EBITDA, which grew by 47.5% to $14.6 million (23.1% of sales), compared with $9.9 million (21.2% of sales) in the same quarter last year.
Net profit in Q2 rose by 52.1% to $5.2 million, compared with $3.4 million in the same quarter last year.
By business segment, sales in the Taste segment, the group’s largest segment (72.9% of total sales), grew by 35.3% to $46.2 million, driven both by strong organic growth of 8.8% and by acquisitions. The sales growth, together with operational efficiencies and the leveraging of synergies, led to an increase in operating profit, which rose in Q2 2025 to $9.7 million (20.9% of sales), compared with $5.9 million (17.3% of sales) in the same quarter last year.
Sales in the Fragrance segment (15.1% of the group’s sales) grew by 6.8%, reaching $9.6 million, driven by 2.2% organic growth, with an operating profit of $2.3 million (24.3% of sales).
Turpaz recently undertook a series of actions to change the product mix in the Specialty Fine Ingredients segment, resulting in strong growth of 110.2%, reaching $7.7 million, with a positive operating profit primarily driven by 106.1% organic growth. This initiative included operational process improvements and the introduction of high-value-added products, which are expected to contribute to improved profitability in upcoming quarters. Additionally, customers returned to purchasing from the Chemada plant in the Gaza periphery after temporarily switching suppliers during the Iron Swords War.
Since the beginning of the year, the Turpaz group has completed five strategic transactions in the UK, Belgium, Poland, France, and India, which expanded its geographical footprint, strengthened its existing operations, and enabled the leveraging of synergies and the expansion of its product portfolio. The acquisition of Attractive Scent in Grasse, southern France, the global perfume capital, created a platform for accelerated entry into the luxury fragrance markets. The AFS acquisition in the UK expanded the product portfolio and strengthened the group’s presence in the British market. The acquisition of Doucy in Belgium strengthened the sweet flavors segment and enabled entry into new markets in the Benelux region. The acquisition of Carotex’s operations in Poland synergistically complemented the activities of subsidiary Pollena Aroma and added products in the beverages segment, a sector with significant growth potential. The investment in Aastrid India, operating in the intermediates sector for the pharmaceutical industry, involved the acquisition of 45% of its shares. With the completion of this investment, Turpaz expanded its production footprint in the Specialty Fine Ingredients segment to four production sites: two in Israel, one in India, and one in Romania, in addition to other production facilities across the group’s operations.
