Business
Interim Management Statement
Interim Management Statement.
About this update from Treatt Plc
[{"type":"text","content":"\n \nRNS Number : 5429N Treatt PLC 29 July 2014 \n \n\n28 July 2014\n \nTREATT PLC\n \nQ3 Interim Management Statement\nfor year ending 30 September 2014\n \nTreatt Plc (the 'Group'), the manufacturer and supplier of innovative ingredient solutions for the flavour, fragrance and consumer goods industries today publishes its Interim Management Statement as required by the Listing Authority Disclosure and Transparency rules. This statement relates to the period from 1 April 2014 to 25 July 2014.\n \nFollowing on from the half year results announcement published on 20 May 2014, the Board is pleased to confirm that the Group performed well in Q3, which was in line with expectations. Indeed, Q3 in 2013 was particularly strong and therefore to repeat a similar performance in 2014 is encouraging.\n \nThe raw material costs of a number of key ingredients (particularly orange, lemon and lime oil) are currently high relative to historical levels. This means that with materially higher order books than at this time last year, year-end inventory levels are expected to be £3-4m higher than previously anticipated. We have also seen a continuation of the weakening of the US Dollar against sterling during the period. Due to the FX hedging policies which are in place, the impact on the reported results for the current year will not be material and will largely relate to the re-translation of Treatt USA's profits at a weaker USD/GBP rate as compared with last year. This translation effect is expected to approximate to a £0.3m lower profit for the current financial year than otherwise would have been the case.Looking to the longer term, the Group is continuing to progress well with its strategic emphasis on product innovation and its focus on added-value manufacturing, with notable progress being made in the year on some exciting new beverage ingredient solutions as the range of flavoured alcoholic and non-alcoholic beverages now available in bars, restaurants and supermarkets continues to expand. We are also pleased that, due to increased demand, we are doubling Earthoil's capacity in Kenya for the production of natural oil-based personal care ingredient solutions, and this capacity is expected to come on stream for Earthoil in mid-2015. It should be noted, however, that the impact of higher ...