Excellent H1 2006 results New acquisition underway

10/30/2006
 In EUR millions H1 2005* H1 2006 Change  Proforma
 2005**
Turnover 18.7 34.7 +85.4% 63.4
Gross margin 12.2 21.5 +76.8% 37.7
as a % of turnover 65.1% 63.8%   59.4%
Operating income 2.2 3.9 +76.1% 8.1
as a % of turnover 11.9% 11.3%   12.7%
Consolidated net income 1.6 2.8 +73.6% 4.6
as a % of turnover 8.6% 8.0%   7.3%
Group net income 1.5 2.8 +78.5% 4.6
as a % of turnover 8.3% 8.0%   7.2%

* excluding Pure World consolidated as of July 1, 2005
 ** including the full-year consolidation of Pure World

With turnover of EUR 34.66 million in H1 2006, Naturex posted record growth of +84.5%, or +76.7% in constant dollars. Naturex benefited from a favorable base effect, with Pure World being consolidated from July 1, 2005.

Proforma growth stood at +5.5% in constant dollars and +10.7% at current dollars. The gradual closure as planned of a marginal, non-strategic and unprofitable business line of Pure World, had an impact of EUR –1.4 million on H1 turnover. Stripping out this one-off item, proforma growth would have been +16.5% in current dollars and +11.2% in constant dollars.
 The nutraceutical business accounted for 62.8% of turnover and food processing, 30.3%.

Moreover, operating income increased +76.1% to EUR 3.91 million. As such, Naturex confirmed a high level of profitability with an operating margin of 11.3%.

Net income was up +78.5% to EUR 2.77 million.

Turnover for the first nine months: continued strong growth

In EUR millions 30/09/2005 proforma* 30/09/2006  Change
Total turnover 47.0 49.7 +5.6%
Pure World business line
 closure underway
4.7 1.6 -65.1%
Toll extraction 0.8 0.3 -63.3%
Proprietary activity 41.5 47.8 +14.9%

* including the consolidation of Pure World

Excluding the impact from the gradual closure or non-strategic business lines, proforma growth stood at +14.9%.

Since the beginning of the financial year, Naturex has strengthened its position in North America (+13.7%), Europe (+17.0%) and in Asia (+24.4%), regions that account for 70%, 27% and 3% of turnover respectively.

 Strategy and outlook

Naturex pursued its strong organic growth strategy on a buoyant market by focusing on a new development axis: cosmetics. Moreover, the Group is set to open an office in the United Kingdom in Q1 2007 — a market which boasts major development potential.

In parallel, Naturex is planning to step up its acquisition policy. Accordingly, in addition to the capital increase of EUR 13.2 million of June 2006, the Group is setting up a structured loan for an overall amount of EUR 66 million of which EUR 35 million to finance acquisitions, and for the reshaping of loans contracted when Pure World was acquired.

The Group announced that a new acquisition is underway: Naturex has just signed an agreement with a view to acquiring a company and is now initiating the audit procedures.

Excluding acquisitions, Naturex’s 2006 full-year turnover target stands at EUR 67 million, with net income of EUR 5.4 million, in constant dollars.

 Naturex will report its 2006 full-year turnover on January 31, 2007.

 About Naturex

Naturex manufactures and sells 100% natural ingredients for the food, flavor and nutraceutical and cosmetic industries. Based in Avignon, France, the Group has an international reach, with over 90% of its sales realized in thirty different countries outside France, 70% of which are generated on the US market. Naturex has facilities in France, Morocco and the United States and a representative office in Singapor
 
 NATUREX has been listed in Paris since October 1996 - Eurolist C FR0000054694  -  Reuters NATU.PA – Bloomberg NTRX

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 Your contacts

NATUREX
 Jacques Dikansky – President and CEO
 Tel : +33 (0)4 90 23 96 89
 j.dikansky@naturex.com 
 
 Thierry Lambert – Vice President and CFO
 Tel : +33 (0)4 90 23 96 89
 
 t.lambert@naturex.com 
ACTUS
 Agnès Villeret – Press Relation
 Tel : +33 (0)1 53 67 36 39
 avilleret@actus.fr
 KAPARCA FINANCE
 Laurence Marquézy – Investor Relation
 Tel : +33 (0)1 72 74 82 23
 lmarquezy@kaparcafinance.com
 
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