Australian sandalwood oil to see success in Europe

By Michelle Yeomans contact

- Last updated on GMT

Australian sandalwood oil to see success in Europe
TFS Corporation, an Australian sandalwood supplier is expecting to export over a billion dollars per annum of oil, predominantly to Europe in areas of fragrance and cosmetics companies.

Other profitable markets for the oil that can be used in acne treatments include North America, China, and India which are expected to generate exports of $1 billion over the next decade.

Overseas is bringing the most opportunity for TFS, with the oil going for $5000 per kilogram.

In fact, CEO Frank Wilson reveals the company recently signed a deal with global dermatology brand Santalis to develop skin care products, and is expected to make about $2.3 (€1.69)million from the 470kg deal.

"[We believe] institutional investors will take more of an interest in the stock later in the year once the new skin products [are launched]," ​says Wilson.

 Sandalwood oil is stock 'with a bullet'

TFS employs 410 staff across northern Australia and has a market capitalisation of almost $600 million. It also boasts being one of the best performers on the Australian stock exchange over the past 12 months.

The company completed its Kununurra processing plant eight months ago.

One fully grown tree can make up to $7000 (€5,154) with the roots and trunk producing valuable oil carving wood for the Chinese market and incense for religious purposes in India.

Governor General Sir Peter Cosgrove, who is on a five day tour of northern Australia, visited the company's operations and reckoned; "not only is it a stock with a bullet, it's got some great promoters."

He added that TFS was also important to the local economy of Kununurra and that the oil is starting "to be a major economic factor, source of revenue and a major employer with huge potential for the longer term."

Related topics: Market Trends, Fragrance

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