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Treatt (TET)

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Treatt sees FY profit in line despite FX, citrus price weakness

05 Apr 19

LONDON (ShareCast) - (Sharecast News) - Treatt, a supplier of flavour and fragrance ingredients, said on Friday that full-year profit will be in line with its expectations despite currency fluctuations and weakness in some key raw materials for its largest product category, citrus.
In an update for the half year to 31 March 2019, the company said revenue was up around 7% from the same period a year ago, or 5% at constant currency. It said this was particularly pleasing against a backdrop of price weakness in some key raw materials, which it expects to continue into the second half of the year.

Treat said that while citrus continues to dominate its category mix, the fruit and vegetables, tea and sugar reduction categories are also driving revenues, representing 69% of the year-on-year growth for the period.

The company, which has a hedging strategy in place, said the weakening in the USD/GBP exchange rate during the period is expected to have an impact of approximately 600,000.

"We are encouraged by our order book which is comfortably up compared with the same time in the prior year, notwithstanding the weakness in some key citrus raw material input prices. This reflects the success of our continued strategic focus on key product categories and geographical markets and the board, therefore, continues to believe that profit before tax and exceptional items will be in line with its expectations for the financial year ending 30 September 2019."

Treatt also confirmed on Friday that the $14m expansion of its US facility was completed in March and will become fully operational in June this year. Meanwhile, construction of its 35m relocation project in the UK is expected to begin this summer, with occupancy in summer 2020.

At 1100 GMT, the shares were up 1.8% to 395p.

Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.


Market Data

Currency UK Pounds
Price 420.00p
Change Today 8.00p
52 Week High 480.00p
52 Week Low 388.00p
Volume 30,612
Shares Issued 59.01m
Market Cap 247.86m


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