2007 results


Integration of Hammer Pharma and HP Botanicals in 2007
 Strong improvement in margins expected in 2008


In EUR millions 31/12/2006 31/12/2007 Pro forma
Revenues 66.2 79.5 85.6
Gross margin 43.3 55.1 58.3
as a % of revenues 66.3 % 69.3 % 68.1 %
Operating income 6.8 6.7 8.6
as a % of revenues 10.3 % 8.4 % 10.1 %
Consolidated net income 5.6 4.4 4.9
as a % of revenues 8.5 % 5.5 % 5.8 %
Group net income 5.6 4.4 4.9
as a % of revenues 8.5 % 5.5 % 5.7 %

* integration of HP Botanicals on January 1, 2007 and consolidation as of April 1, 2007. Consolidation of Chart Corporation as of December 12, 2007

2007 results

As expected, 2007 was a year of consolidation for Naturex during which the Group integrated the strategic acquisitions made in Italy at the start of the year, namely Hammer Pharma and HP Botanicals. In repurchasing these companies, Naturex now ranks amongst the leading companies on Italy's buoyant neutraceuticals market and has acquired a high quality industrial site close to Milan as well as gaining access to a new market, the pharmaceuticals industry.

Naturex posted revenues of EUR 79.5 million in 2007, representing growth of 27.4% in constant dollars and 20.1% in current dollars. Following the integration of Hammer Pharma and HP Botanicals over 12 months in 2006 and 2007, the Group's organic growth came out at 12.1% in constant dollars and 5.8% in current dollars.

Its operating margin, largely impacted by the dilutive effect of the acquisition of Hammer Pharma, the ongoing reinforcement of the Group's teams and the sharp downturn in the dollar during the second half of the year, stood at 8.4%.

Group net income amounted to EUR 4.4 million, i.e. 5.5% of revenues.

Outlook for 2008

Naturex's proforma revenues in 2007 totaled EUR 85.6 million, added to which are the EUR 3.8 million generated by the "actifs innovants" (innovative active ingredients) division of Berkem acquired in January.

Over the course of 2008, the Group intends to pursue its dynamic growth in constant dollars, notably through its expansion overseas. Indeed, not only will Naturex benefit from the strong development of its new commercial offices, but the Group is also setting up a subsidiary in China and plans to open new offices in Germany in the first half of the year and in Japan during the second half.

Naturex will also focus on the development of its innovative active ingredients business, an activity with a strong growth potential and value-added in which it has recently upped its investment.

The Group targets an operating margin of 11% in 2008 thanks to:

Finally, Naturex Group intends to reduce its inventories from 50 to 40% of revenues over 3 years.

 Naturex will publish its revenues for the first quarter of 2008 on April 30, 2008.

About Naturex

Naturex manufactures and sells 100% natural ingredients for the food, flavor, nutraceutical, cosmetic and pharmaceutical industries. Based in Avignon, France, the Group has an international reach, with over 90% of its sales realized in 30 different countries outside France, 60% of which are generated on the US market. Naturex has industrial sites in France, Morocco, the United States and Italy as well as a subsidiary in the United kingdom and a representative office in Singapore.

NATUREX has been listed since October 1996 - Paris Euronext Paris, segment C
 ISIN Code: FR0000054694 - Reuters: NATU.LN - Bloomberg: NTRX:FP

Your contacts

 Jacques Dikansky – President and CEO
 Phone. : +33 4 90 23 96 89
 Coralie Vogt – Financial PR
 Phone : +33 1 53 67 35 79
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