Key points:
- Treatt reported a trading update for the year ended September 30
- The company anticipates a 13% increase in revenue
- Treatt shares jumped over 11%
Treatt (LON: TET) said on Thursday that its profit for the year to September 30 is expected to be in line with expectations, sending its shares over 11% higher.
In its trading update for the period, the manufacturer and supplier of flavour and fragrance ingredients said pre-tax profits for FY22 were in line with the company's revised projection of between £15 million and £15.3 million.
Additionally, the company anticipates a 13% increase in revenue to £140 million.
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“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 of Treatt Daemon Reeve.
Reeve added that the business is “encouraged by prevailing consumer trends, particularly in the beverage market,” despite the uncertain economic climate.
The group ended the year with net debt of £23 million, compared to £9.1 million in 2021. During the period, the company spent £6 million on its new UK facility and invested in its inventory to mitigate supply chain risks for customers.
The business confirmed its intention to continue its progressive dividend policy.
Furthermore, Treatt does not foresee any significant increase in administrative expenses and is confident in delivering top-line growth.