Treatt ends year in line with revised expectations
13th Oct 2022 08:44
(Sharecast News) - Ingredients and extracts producer Treatt said in a trading update on Thursday that its profit before tax and exceptional items was still expected to be in line with downwardly-revised board expectations for the financial year just ended, of between £15m and £15.3m.
The London-listed firm said revenue growth for the 12 months ended 30 September was around 13%, or 9% in constant currency, in line with market expectations.
Its progressive dividend policy remained unchanged, while the majority of the company's production was now transitioned to its new UK facility, with UK production capacity set to at least double once the process was fully completed in the 2023 financial year.
The board said "substantial investment" over recent years in production and people would support "significant" growth opportunities over the medium term, bolstered by favourable consumer trends in the beverage market.
"We delivered continued positive growth in sales for the year, reflecting a good performance across the vast majority of our categories, however, we were impacted by some specific factors in the second half which ultimately led to a disappointing outcome for the full year," said chief executive officer Daemmon Reeve.
"We have taken a number of immediate actions in recent weeks to ensure the business has the right systems in place, whilst also confirming that the substantial investment in our team and facilities is adequate to meet our ambitious goals."
Reeve said that while the macroeconomic environment remained uncertain, the company was "encouraged" by prevailing consumer trends, particularly in the beverage market, which played into its specialist expertise in flavour.
"As such, we are confident the business can revert to its trajectory of growth."
Treatt said it would announce its results for the year ended 30 September on 29 November.
At 1046 BST, shares in Treatt were up 11.15% at 578p.
Reporting by Josh White at Sharecast.com.