Treatt expects full year to exceed expectations
Treatt plc has announced group revenue up 31% to £28.3m for the six months ended 31 March. EBITDA was up 10% to £2.2m and profit before tax rose 6% to £1.4m. Performance was said to be in line with expectations despite the major downturn in world economies, with both sales and margins holding up well across the Treatt Group.
Treatt plc has announced group revenue up 31% to £28.3m for the six months ended 31 March. EBITDA was up 10% to £2.2m and profit before tax rose 6% to £1.4m. Performance was said to be in line with expectations despite the major downturn in world economies, with both sales and margins holding up well across the Treatt Group.
Treatt manufactures and supplies conventional, organic and ethically traded ingredients for the flavour, fragrance and cosmetic industries.
UK operating subsidiary RC Treatt had a particularly good half year, benefiting from a strong US$ with 75% of its order book being $ based. Aroma chemical sales have continued to grow, with margins benefiting from the weaker £, though there have been fewer transactions. Sales to the Middle East, which have grown substantially in the last two years, dropped sharply due to regional economic constraints.
Following strong sales in the year to 30 September 2008, Treatt USA maintained sales and margins.
Meanwhile the Earthoil subsidiary showed marked improvement with sales on a like-for-like basis up 82% year on year with improved margins. The company says efforts have continued to integrate Earthoil within Treatt Group management structures and achieve synergy cost savings.
Looking ahead, chairman Edward Dawnay believes: “Whilst current economic conditions create uncertainty and necessitate a strong degree of caution, the Board believes that the full year results will now exceed its current expectations, although it is too early to quantify the extent to which this may be the case.”