Treatt Plc · LSE:TET
Treatt — Non-Deal Roadshow (December 2024)
32 slides from Treatt's roadshow presentation, December 2024
Slide 1: For the Year Ended 30 September 2024
For the Year Ended 30 September 2024 Chief Executive Officer Chief Financial Officer Making the world taste better. For good
Slide 2: Making the world taste better. For good
Making the world taste better. For good 2
Slide 3: 2024 Review
2024 REVIEW uv TREATT
Slide 4: 2024 highlights
growth of 6% (H2 growth of 14%) growth of 13% despite industry destocking in Q1 driving new business wins in Premium and China generation All figures above are in Constant currency Making the world taste better. For good 4
Slide 5: Innovation launches and investment
Cost competitive natural Investment in Citrus alternatives China Innovation facility Expanding our reach in Launching new Synthetic Aroma value-added TreattZest Multiple innovation launches in ice-tea Brix Boosters that improve sweetness perception Pilot Plant to triple trials Making the world taste
Slide 6: Financial results summary
Revenue Gross profit growth of 6% (constant currency), despite Gross profit margin destocking in H1, we achieved record H2 revenue Administrative expenses(1) Adjusted Operating profit(1) within expected range, focus on Adjusted Operating profit margin (1) maintaining cash margin in high commodity ma
Slide 7: Revenue by segment
Heritage growth driven by recovery of Premium in line (+3% in constant New Markets decline led by lower Coffee Synthetic Aroma and Citrus growth with currency).Higher tea volumes offset by volumes partially offset with exciting China strategic accounts lower demand in Fruit & Veg growth Making the w
Slide 8: Current trading and recovery
: Clear signs of recovery in Q2 with some residual destocking in Q1 - Order book execution - Normalised spot order pattern - Conversion of new business pipeline Making the world taste better. For good 8
Slide 9: Operating costs and profit
Depreciation Underlying investment in Sales team with admin costs strategic hires in Europe and USA team hires bring 125 years of industry experience measures offset high inflationary costs Making the world taste better. For good 9
Slide 10: Cash flow and working capital
performance strong over the last two years well managed despite high raw material prices investments with focus on innovation and fast returning projects Making the world taste better. For good 10
Slide 11: Medium term priorities and targets
Expand our reach, new Sales, marketing and Normalised capex, focus on geographies Growth in Premium segment innovation capex innovation activities Broaden into high value Strategic sourcing to secure Strategic inventory with key Costs appropriately scaled to markets Citrus supply customers drive gro
Slide 12: Evolved Strategy
EVOLVED STRATEGY
Slide 13: Making the world taste better. For good
Making the world taste better. For good 13
Slide 14: Revenue growth, margin growth, innovation and differentiation
Revenue Growth Margin Growth Innovation & Differentiation Making the world taste better. For good 14
Slide 15: Market growth data
Global Data Market Analyzer 2024. CAGR is expected data to 2028 Making the world taste better. For good 15
Slide 16: Beverage categories by price segment
RTD Alcohol Sports Drinks Energy Drinks Juice Carbonates RTD Coffee Flavoured Water Enhanced Water Mainstream price segment Premium price segment Making the world taste better. For good 16
Slide 17: Making the world taste better. For good
Making the world taste better. For good 17
Slide 18: Summary and outlook
• +4% sales growth, +10% profit growth • Truely globalise by expanding reach • New management team and structure • Broaden our product positioning in place • Focus on our agility in offering best in • Available capacity in Europe and USA class customer experience • Strong skillset and knowledge base
Slide 19: Q&A
Slide 20: Forward looking statements
This presentation contains forward looking statements which are made based on the information available at the time of its publication. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by risks and uncertainties that are inherent in any forw
Slide 21: Appendix
APPENDIX
Slide 22: Operating margin and ROACE
Growth driven by sales increase, margin focus and operational efficiencies 13.5% 11.3% 12.4% 13.0% Medium term target: 15% Capital base fully invested, growth to follow 13.6% 14.5% Medium term range: 15-20% 11.6% 12.2% 1 From continuing activities
Slide 23: Financial growth metrics
+4% -130BPS +10.1% +6.7% +5% 1 Excluding exceptional items and in the case of earnings per share the related tax effect 23
Slide 24: Sustainability highlights
of Business Leadership Team are women of permanent group employees are shareholders programme that empowers and supports 42% reduction in scope 1 & 2 by 2030 Solar installation commenced in the UK New us process cleaning Executive Director and management team bonus scheme subject to ESG related non-
Slide 25: Revenue 2013-2024
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 H1 H2
Slide 26: Profit before tax 2013-2024
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1 Excluding exceptional items 2 Treatt compiled consensus of four analyst forecasts for FY22 profit before tax and exceptional items
Slide 27: Revenue by half year
2013 2023 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 H1 H2
Slide 28: Earnings per share
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 H1 H2 1 2018 – 2020 EPS is shown from continuing activities
Slide 29: Gross margin trends
in low margin Heritage dilutive to margins. Focus on maintaining cash margins. to mitigate raw material inflation to drive lower cost base and increase margin 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Slide 30: Balance sheet
Fixed assets Inventories Receivables reduces by £4.4m driven by strong disciplines Payables Working capital reduced by £9.7m with strong cash generation in the year Taxation Net (debt)/cash grew in the Pension asset year by £4.7m, with net assets per share increasing by 3% Other net (liabilities)/as
Slide 31: Cash flow statement
Year ended 30 September Operating cash flow Decrease in inventories Decrease/(Increase) in receivables (Decrease) in payables inflow driven by inventory Cash used in/(generated from) operations Taxation received/(paid) management; partially offset by reduction in Net cash from operating activities r
Slide 32: Revenue by customer type and region
Direct to Flavour FY23 Brand Owners Houses FY22 FY 24 FY23 48% 45% Average FY18- FY22 55% 52% United States Europe Rest of World FY 23 The Americas United Kingdom China 1 From continuing activities The Americas (excluding the US) (17 countries) / Rest of the World (35 countries)