Turpaz Industries reports USD 173.9M revenue in H1 2026
The performance reflects successful integration of companies acquired during 2025, which materially strengthened the group’s management, R&D, operational, marketing, and sales infrastructure, as well as its geographic footprint.
ISRAEL – Turpaz Industries Ltd., a global developer and manufacturer of flavour and fragrance extracts, has reported strong financial results for the second quarter and first half of 2026, underscored by strong organic growth and a series of strategic acquisitions.
Karen Cohen Khazon, Chief Executive Officer of Turpaz Industries, said, “Turpaz continues to deliver record results and double-digit growth, both in the second quarter and in the first half of 2026.”
“These results reflect the continued successful execution of our growth strategy, which combines organic growth with strategic acquisitions, the integration of the acquired companies, the realization of partnerships, cross-selling and the leveraging of Turpaz’s global platform.”
Q2 2026 performance
In the second quarter ended June 30, 2026, Turpaz reported group revenues of USD 90.2 million, up 42.3% year over year, with organic growth of 7.3% excluding currency effects.
Gross profit climbed 51.5% to USD 37.4 million, lifting the gross margin to 41.5% from 39.0% in the same quarter last year, reflecting operational efficiencies and collaboration from recent integrations.
Adjusted EBITDA rose 40.9% to USD 20.6 million (22.9% of revenues), while operating profit increased 22.0% to USD 12.1 million. Net income for the quarter grew 56.4% to USD 8.2 million.
The strong Q2 performance was underpinned by early contributions from two key acquisitions completed in the quarter: U.S.-based Phoenix, which added USD 7.0 million in revenue and USD 0.9 million in net profit through June, and France-based Romessence, which contributed USD 1.6 million in revenue and USD 0.3 million in net profit.
Despite the revenue surge, the core-business operating margin narrowed slightly to 20.5% from 21.5% in Q2 2025, as integration costs and segment mix effects weighed on profitability.
The fragrance segment posted the largest revenue increase, including 14.9% organic growth, but its operating margin slipped 2.5 percentage points, while the taste segment saw a one-point margin decline.
H1 2026 results
For the first half of 2026, Turpaz achieved record group revenues of USD 173.9 million, up 40.5% from the prior-year period, with organic growth of 8.1% excluding currency effects and additional contributions from acquisitions completed in 2025 and H1 2026.
Gross profit rose 50.2% to USD 72.5 million, and the gross margin improved to 41.7% from 39.0% in H1 2025, driven by continued operational efficiency measures, partnership realization, and business growth.
Adjusted EBITDA increased 41.6% to USD 40.0 million (23.0% of revenues), up from USD 28.3 million (22.8% of revenues) a year earlier.
Operating profit grew 27.7% to USD 25.0 million, and net income surged 80.9% to $19.2 million, fueled by profitable growth, acquisition contributions, and non-cash financing income related to the early acquisition of sellers’ full holdings in FIT.
Strategic M&A and expansion
Since the start of 2025, Turpaz has completed eight strategic transactions, including the acquisitions of Phoenix in the U.S. and Romessence in France during Q2 2026, significantly expanding its footprint in North America and Europe and deepening its capabilities in fine fragrance.
These moves align with the company’s strategy to capitalize on industry trends, particularly the strengthening fragrance segment, by establishing a broad global platform that enables cross-selling, collaboration realization, and accelerated growth.
Turpaz’s annual revenue run-rate stands at approximately USD 380 million, reflecting the step-change in scale following the U.S. and France acquisitions.
Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE.
