TREATT PLC
HALF YEAR RESULTS
SIX MONTHS ED 31 MARCH 2023
9 May 2023
Record H1 revenue and strong profit growth; trading in line with expectations for the full year
Treatt Plc (‘Treatt’ or the ‘Group’), the manufacturer and supplier of a diverse and sustainable portfolio of natural extracts and ingredients for the beverage, flavour and fragrance industries, announces its half year results for the six months ended 31 March 2023 (the “Period”).
FINANCIAL HIGHLIGHTS:
| Half year ended31 March 2023 | Half year ended31 March 2022 | Change | |
| Revenue | £76.0m | £66.3m | +14.6% |
| Gross profit margin | 28.2% | 27.5% | +70bps |
| Operating profit before exceptional items | £7.7m | £6.6m | +17.1% |
| Profit before tax and exceptional items | £7.3m | £6.3m | +15.0% |
| Profit before tax | £6.6m | £9.0m | -26.0% |
| Adjusted basic earnings per share | 9.04p | 8.21p | +10.1% |
| Basic earnings per share | 8.15p | 12.72p | -35.9% |
| Dividend per share | 2.55p | 2.50p | +2.0% |
HIGHLIGHTS & OUTLOOK:
· Record H1 revenue with 14.6% growth across the product portfolio (8.5% in constant currency)
· Strong performance in citrus and good momentum in both China and coffee
· Pricing actions and cost discipline implemented to recover raw material inflation
· Profit before tax and exceptional items of £7.3m, up by 15.0% (H1 2022: £6.3m)
· Inventory reduction of £7.7m since FY22 notwithstanding record high orange oil prices
· Net debt reduced to £17.7m (FY22: £22.4m) despite normal working capital build in first half
· Good momentum into H2 and expect to report full year profit before tax and exceptionals in line with Board expectations
· The Board has declared an interim dividend at 2.55 pence per share
Commenting on the results, Group CEO, Daemmon Reeve, said:
“We came into this financial year determined to continue pursuing the exciting growth opportunities available to Treatt with a focus on cost discipline and pricing initiatives to counter the inflationary backdrop. These actions have proved effective and we have achieved record sales for the period and a strong profit performance.
“We remain well-positioned to capitalise on prevailing trends in a resilient beverage market. We are winning new customers and deepening our relationships with our existing ones. This has led to a very strong performance in our higher margin citrus category, growth in China following its re-opening and we have also seen some good early wins in the exciting coffee market.
“Treatt has good momentum going into the second half to support our continued confidence in the group’s future prospects.”
Analyst and investor conference call
An in-person presentation for analysts and investors will be held at 9.30 a.m. today, 9 May 2023. For details and to confirm attendance, or for webcast information, please contact MHP at treatt@mhpgroup.com. A recording will be made available after the event.
In accordance with DTR 6.3.5 please find below the unedited full text of the half year results.
A copy of the half year results will be submitted to the National Storage Mechanism and will shortly be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism. It will also be available on the Treatt website at www.treatt.com/investor-relations.