Hortifrut's merger with Alifrut to form Vitafoods, alongside significant sales growth and profitability improvements, positions the company for strategic expansion in the frozen fruit market.

Information on the Target

Hortifrut, a leading Chilean soft fruit specialist, has achieved remarkable financial growth in the first half of 2020, nearly doubling its sales compared to the same period in the previous year. The company's EBITDA surged to US$45.67 million, representing an impressive 93.44% increase. This notable performance can be attributed to a combination of factors, including significantly higher prices for Chilean fruit driven by improved quality, better margins in their frozen food segment, and the maturation of strategic investments made in China.

Furthermore, Hortifrut has managed to reduce costs effectively, contributing to its heightened profitability. This cost reduction is largely attributable to the enhanced quality of the fruit, streamlined administrative and sales expenses due to operational efficiencies, and a favorable decrease in other expenses related to the fair value of fruit in stock at the end of 2019, compared to the previous year.

Industry Overview in Chile

The Chilean agricultural sector has been experiencing robust growth, particularly in the soft fruit market, which has benefited from increasing global demand. The country is well-known for its extensive cultivation of berries, such as blueberries, strawberries, and raspberries, which