25 January 2024
TREATT PLC
(“Treatt” or “the Group”)
AGM Trading Update
Treatt, the manufacturer and supplier of a diverse and sustainable portfolio of natural extracts and ingredients for the beverage, flavour and fragrance industries, provides the following update on trading for the three month period to 31 December 2023 (“Q1”), ahead of its Annual General Meeting to be held later today at 10:30am in the Group’s UK Headquarters at Skyliner Way, Bury St Edmunds.
Revenue performance in Q1, which is typically our quietest quarter, saw a decline year on year as anticipated, reflecting the impact of destocking. There are encouraging signs that destocking trends are reversing, and as such we expect customer demand to return to more normal levels in Q2. The Group continues to benefit from the cost disciplines that are embedded in the business.
We remain committed to volume growth, and are well placed with a healthy pipeline of opportunities with both new and existing customers. Many of these opportunities align with the long-term trends towards health & wellness and use of natural extracts, areas in which Treatt has a recognised market position, as well as opportunities in our target growth areas in new markets.
We continue to focus on cash generation and we are on track for further improvement in net debt during the course of the year in line with management’s expectations.
Whilst we are mindful of ongoing macroeconomic pressures, we are encouraged by current trading, underpinning our confidence in our trading performance for the year ahead.
Treatt plc +44 (0)1284 702500
Ryan Govender Interim Chief Executive Officer
Alison Sleight Interim Chief Financial Officer
Joint Brokers
Investec Bank Plc +44 (0)20 7597 5970
Patrick Robb
David Anderson
Peel Hunt LLP +44 (0) 20 7418 8900
George Sellar
Mike Burke
Financial PR
MHP +44(0) 20 3128 8100
Tim Rowntree Treatt@mhpgroup.com
Eleni Menikou
Catherine Chapman