Bury St Edmunds-based ingredients manufacturer, Treatt, sees profit grow by £17 million

Leading ingredients manufacturer, Treatt, has seen profit growth return and a resilient revenue performance.

The Bury St Edmunds-based manufacturer and supplier of natural extracts and ingredients for the beverage, flavour and fragrance industries, made the announcement today following a trading update for the year ending September 30 2023 (FY23)

The company, based in Suffolk Park has seen ‘resilient’ revenue growth of 5 per cent at circa £147m compared with £140m in FY22.

Profit before tax and exceptional items are expected to be in line with board expectations of circa £17m, up by around 11 per cent on FY22.

It says successful pricing have led to recoveries against material inflation, that China and coffee growth is line with expectations, and strong cost disciplines and other self-help measures have lessened the impact of customer destocking.

It says it’s UK site transition is now complete, providing strong platform for growth.

Daemmon Reeve, CEO of Treatt, said: "We delivered positive growth in sales and profit for the year, reflecting the significant price increase programme and ongoing resilience in our beverage end markets.

“Revenues in the second half of the year were impacted by certain customers reducing inventories in response to interest rate rises. However, we are seeing some early signs of a reversal of this temporary destocking effect, and have also been able to mitigate the effect of this impact with strong cost discipline and other self-help measures.

“With our unique value-add products, in conjunction with the new site transition now complete, we are confident in Treatt's long-term prospects."

Treatt's results for the year ended September 30 2023 are expected to be announced on November 28 2023.