Business
Trading Statement
Trading Statement.
About this update from Treatt Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 5683B\n Treatt PLC\n 09 October 2020\n \n \n \n \n 9 October 2020\n \n \n TREATT PLC\n \n \n (\"Treatt\" or \"the Group\")\n \n \n Trading update for the year ended 30 September 2020\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, today publishes a trading update for the year ended 30 September 2020 (\"FY20\").\n \n \n Highlights\n \n \n · \n FY20 profit before tax and exceptional items in line with pre-COVID-19 Board expectations. \n \n \n · \n 16% revenue growth in our health & wellness category.\n \n \n · \n Stronger margins from our focus on added-value products, despite the impact of lower orange oil prices and COVID-19.\n \n \n · \n UK relocation project progressing well and on budget - transition expected in Spring 2021.\n \n \n · \n Cautiously optimistic outlook for the new financial year despite on-going uncertainty from COVID-19.\n \n \n FY20 performance \n \n \n Building on the momentum seen in H1, the Group performed well during the second half of the financial year, reflecting our focus on added-value products. The Board expects to report profit before tax and exceptional items for FY20 of approximately £14m, in line with its pre-COVID-19 expectations. \n \n \n Revenue for the year is anticipated to be in the region of £109m, a decrease of 3% (-3% in constant currency) compared with the prior year. As previously reported, revenue for the year was impacted by the substantial reduction in orange oil raw material input costs, which fell by more than 50% in the prior year. Excluding orange oil related products (which represent around 22% of FY20 revenue), revenue grew by 4% in the year. The impact of COVID-19 on on-trade demand was particularly felt in Q3, with Q4 revenue showing some recovery as the hospitality sectors in Europe and the US began to reopen.\n \n \n Despite a 10% reduction in reported revenue from our citrus category, which contributes 50% (FY19: 54%) of Group revenue, gross profit from this category increased year on year as the business continues to transition away from traded and minimally processed products to more added-value customer solutions. In addition, the Group experienced increased demand for citrus co-products used in...