US sales surge drives Treatt to greater glories
Food products manufacturer Treatt plc saw its UK share price increase significantly after confirming strong growth in revenues and profits for the half-year to March 31.
Revenue was 13.5 per cent higher to £60.8 million while pre-tax profit soared 71.4 per cent to £10.4m.The interim dividend has been hoisted 8.7 per cent to 2p per share. By the time of writing today, Treatt’s share price had more than doubled year-on-year. It was 516p on 12 May 2020 and was 1080p this morning – a climb of 564p in 12 calendar months.
Group CEO Daemmon Reeve said: Our performance over the half has been remarkable in what remain challenging times. The dedication of our teams to deliver this exceptional outcome and execute on our strategy speaks volumes about the business we have become and the culture which has been developed.
“It also demonstrates the value we bring to our customers, providing bespoke, exciting, innovative and differentiating solutions, across a number of growing addressable markets.
“We are optimistic about demand returning from the re-opening of hospitality across more geographies in the coming months and the boost from our UK relocation, which gives us much to look forward to and further enhances the future prospects for our business.”
The group is in the process of relocating its UK headquarters in Bury St Edmunds. It is also spreading its wings talent wise, bringing in a chief people officer and seeking to recruit talent from within and outside of the industry.
It is also recruiting a chief innovation officer to drive even more R & D. Reeve said innovation and people were key to the next phase of growth for the business.
The US remains the group's largest market, representing 45 per cent of revenue in the period – up 25.3 per cent year-on-year. Whilst citrus continues to dominate the mix, at 45 per cent of the US market revenue, growth in the period was led by tea, which increased from 15 per cent to 23 per cent of US revenue and fruit & vegetables now representing 17 per cent of the returns from across the Atlantic.
Revenue attributable to UK customers represented seven per cent of group revenue, growing by 21.6 per cent, having been impacted in particular in 2020 H1 by the fall in citrus prices due to the high proportion of citrus revenues.
Reeve said: “Our UK business is also seeing increasing volumes from a number of strategic partnerships within our synthetic aroma category and new business wins in the 'make or buy' outsourcing arena.”