HAIFA, Israel—Frutarom reported sales of $98.4 million in the first quarter of 2009, a decrease of approximately 5.5 percent in local currency terms compared to the first quarter of 2008.
According to the company, the strengthening of the U.S. dollar against European currencies and the NIS (in which most of Frutarom's sales are made) at sharp rates of 7 percent to 28 percent reduced the sales, in dollar terms, in the first quarter by approximately 13.8 percent. In dollar terms, sales in the first quarter decreased by 19.3 percent compared to the same quarter last year.
The global economic crisis also had an effect on earnings. "During the last months of 2008, the economic atmosphere in the world, which permeated to the global economy, materially changed the growth trend characterizing most of the world's economies in recent years,” said Ori Yehudai, president and CEO of Frutarom. “We estimate that with the stabilization of the global markets, the moderation of the fluctuations in currencies, the discontinuation of the inventory reduction trend and the gradual improvement in consumption, mainly in countries significantly affected by the devaluation in their currency rate, Frutarom will return to growth rates similar to those characterizing its activities in the past.”