Bury St Edmunds based ingredients manufacturer, Treatt, sees sales accelerate and year-on-year profit growth

An ingredients manufacturer has seen sales accelerate and year-on-year profit growth.

Treatt, which which supplies natural extracts and ingredients for the beverage, flavour and fragrance industries, made the announcement in its latest half-year trading update ending March 31 2024.

It reports a ‘solid performance’, with highlights including:

· Profit before tax and exceptional items (PBTE) expected to be marginally ahead of the previous year at circa £7.5 million (compared with £7.3 million during the same period in 2023).

· Revenue of £72.1 million (compared with £76.0 million in 2023), reflecting the impact of destocking as expected in quarter one; and an acceleration with sales growing by 5.1 per cent in the second quarter, compared with the same period in 2023.

· New wins in premium products and in China, with both areas growing during the first half of the year.

· Improved net operating margin of circa 11 per cent (compared with 10.1 per cent in 2023), reflecting cost disciplines and self-help measures

· Net debt unchanged from September 30 2023 at £10.3 million (compared with £10.4 million in 2023), reflecting higher citrus commodity prices and strong March sales.

· A solid sales order book and healthy sales pipeline for the second half of the year.

· Full year PBTE anticipated to be in line with the board's expectations.

Ryan Govender, interim CEO, said: “Treatt delivered a robust performance in the first half, making good progress in line with our strategic goals.

“We are particularly pleased with progress in China, where we continued to invest and consolidate our position, and in our higher margin premium categories where we have a number of active pipeline opportunities.

“Momentum in the second quarter was strong, and we recorded our highest ever monthly revenue in March.

“As we enter the second half, we are encouraged by our solid order book and healthy sales pipeline.

“The board continues to expect to report full year PBTE in line with expectations.”