Treatt share price takes off as results rocket

Treatt makes and supplies a diverse and sustainable portfolio of natural extracts and ingredients for the beverage, flavour and fragrance industries.

In a trading update for the year to September 30, the company disclosed s

strong H2 momentum with full year sales and profits in line with expectations.

Second half revenue progression of 16 per cent reflected organic growth from new business wins and a normalisation in industry demand. Treatt says

full year revenue growth will be five per cent (7 per cent in constant currency) to c.£155.2 million. Pre-tax profit for the year is nine per cent higher to around £18.8m.

Treatt says that China continues its growth momentum with the company’s new Shanghai innovation facility approved to accelerate locally customised innovation and customer collaboration.

Year-end net debt was significantly reduced to £0.7m (FY23: £10.4m), ahead of board expectations, reflecting the robust cash generation and discipline of the business according to the directors.

During the year Treatt has invested for revenue growth, including expanding its commercial teams, with experienced industry experts based closer to customers.

David Shannon said: “I am pleased that we will report good growth in both sales and profit for the year, reflecting the determined conversion of our order book and strong cost discipline.

“Revenue growth in the second half of the year in particular was strong, with sales pipeline conversion and demand normalising following industry destocking.

“With our value-add products and available manufacturing capacity following the investments in recent years we will start to target greater customer reach in adjacent markets and new territories. We are confident in Treatt's long-term prospects.”

• Treatt's results for the year are expected to be announced on December 4.