Treatt profit forecast sends share price skywards
Shares in Suffolk-based manufacturer Treatt plc rocketed 100p – around 13 per cent – to 870p in UK trading today after stunning profit news in a trading update.
The company revealed that profit before tax and exceptional items for FY21 was expected to materially exceed current consensus of £15.1 million.
Treatt makes and supplies a diverse and sustainable portfolio of natural extracts and ingredients for global beverage, flavour and fragrance industries. It was giving an update on trading since the start of its financial year ending September 30, 2021.
Treatt reported a strong operating performance across multiple categories and customers, with new organic revenue growth and enhanced margins from an enhanced product mix.
The business has continued partnering with customers to develop exciting products in the fast-evolving beverages market and the move is driving potential for further revenue and margin growth.
Despite the pandemic, the group is performing particularly well in its citrus, health & wellness, fruit & vegetables and tea categories.
Some material new business wins have been achieved including in the global alcoholic seltzer category which is continuing to grow strongly.
Treatt is well positioned as a supplier of natural extracts including its sugar reduction solutions; the group's technical expertise enables it to add significant value to customers across a growing range of applications resulting in margin expansion as well as revenue growth.
CEO Daemmon Reeve said: “We're encouraged by our strong trading momentum continuing into the current financial year. Performance has been positive across a number of our key categories, with particular growth in our solutions for the expanding alcoholic seltzer market, utilising our expertise in natural extracts.
“Whilst mindful of the global backdrop, we are confident that we can make further progress this year, to grow organic revenue across an increasingly global and diversified customer base who benefit from our technical expertise and value-add approach.”