Treatt boosts full-year profits despite pandemic
East of England manufacturer Treatt plc has exceeded its own expectations with excellent full-year results that defy normal business gravity given the constraints of the pandemic.
Profit before tax and exceptional items was up 11.3 per cent for the year to September 30 while the dividend per share increased by 9.1 per cent. Treatt called it “a strong performance in unprecedented times.”
The Bury St Edmunds company, which trades globally, makes and supplies a diverse and sustainable portfolio of natural extracts and ingredients for the beverage, flavour and fragrance industries.
Cash generated from operations in the year was £15.7 million (2019: £20.5m) and free cash flow, excluding the costs associated with an imminent local relocation, was £10m.
Some 74 per cent of group revenue came from natural and clean-label products and the company says that diversification of its international-facing portfolio is progressing well.
CEO Daemmon Reeve said: “Treatt has performed strongly during what has been an unprecedented year. To have exceeded the expectations we had at the start of the year before the outbreak of the pandemic, speaks volumes about the resilience of the business, our strategy and market position. We continue to focus on new market opportunities and consumer trends including those in coffee, natural extracts and the burgeoning hard seltzer market.
“We remain confident in the future growth potential of the business and believe we are in a robust position to manage any further impacts from the pandemic.
“Building on the excellent fundamentals of our business and broad added-value product offering, we have made a strong start to our new financial year and the group continues to perform in line with the board’s expectations.”