Business
Half Year Trading Update and Notice of Results
Half Year Trading Update and Notice of Results.
About this update from Treatt Plc
[{"type":"text","content":"\n \n \n \n 12 April 2023\n \n \n \n \n TREATT PLC\n \n \n \n \n (\"Treatt\" or \"the Group\")\n \n \n \n \n Half Year Trading Update and Notice of Results\n \n \n \n \n Strong revenue and profit growth; trading in line with expectations for the full year\n \n \n \n Treatt, the manufacturer and supplier of a diverse and sustainable portfolio of natural extracts and ingredients for the beverage, flavour and fragrance industries, announces the following trading update for the half year ended 31 March 2023 (the \"Period\").\n \n \n \n Highlights\n \n \n \n ·\n Record H1 revenue with 15% growth (8.5% in constant currency) to £75.9m (H1 2022: £66.3m)\n \n \n ·\n Profit before tax and exceptional items growth to at least £7.1m, up by c12% (H1 2022: £6.3m)\n \n \n ·\n Successful pricing actions to recover raw material inflation\n \n \n ·\n Coffee growth ahead of expectations as we continue to embed this new, value-added category\n \n \n ·\n Strong cost discipline and other self-help measures continue\n \n \n ·\n Inventory reduction of c£7.0m since FY22\n notwithstanding record high orange oil prices and continued strategic inventory holdings for large beverage customers\n \n \n ·\n Net debt reduced to £17.7m (FY22: £22.4m) despite normal working capital build in first half, with further reduction of debt anticipated in H2\n \n \n ·\n Trading in line with the Board's expectations for the full year\n \n \n \n \n \n \n \n \n H1 2023 performance\n \n \n \n We have made a strong start to FY23, with record H1 sales expected to be 15% ahead of the prior year and 8.5% ahead at constant currency.\n \n \n Despite the uncertain macro environment, our beverage volumes have shown resilience. We continue to win business with both new and existing customers through direct sales to FMCG brands, as well as indirectly through flavour and fragrance houses, demonstrating the strength of the Group's diverse business model.\n \n \n China continues to be an important strategic region for the Group and our China subsidiary is making encouraging progress, with sales into the region of £4.9m in the Period (H1 2022: £3.5m). We continue to invest in the capability of our China business, both in terms of technical lab equipment and headcount, enabling new business wins and building our sustained confidence in the longer-term outlook for the region.\n \n \n W...