Treatt PLC (LON: TET) shares are rising on Friday after the company said it expects profits for the current financial year to materially exceed the current consensus of £15.1 million.
The company noted strong operating performance across multiple categories with new organic revenue growth and enhanced margins from it's improving product mix.
Profits for Treatt's first four months of the current financial year are expected to be ahead of the company's previous expectations for the period while developing products in the fast involving beverages market drives potential for further revenue margin growth.
Treatt said the year to date has been significantly better than expected with the group performing well in its citrus, health & wellness, fruit & vegetables and tea categories.
The UK-based ingredients manufacturer has also gained new business, including the global alcoholic seltzer category while also stating it is well-positioned as a supplier of natural extracts including its sugar reduction solutions.
Despite the current challenges of the ongoing COVID-19 pandemic and the potential for continued lockdowns, Treatt feels the strong momentum shown in the first few months of the current financial year will continue into the second half.
“We're encouraged by our strong trading momentum continuing into the current financial year. Performance has been positive across a number of our key categories, with particular growth in our solutions for the expanding alcoholic seltzer market, utilising our expertise in natural extracts,” commented Daemmon Reeve Treatt's CEO.
Treatt shares are currently trading 10.91% higher at 854p after initially reaching highs of 900p per share earlier in the session.