REG - Treatt PLC - Trading Update

TreattAnnouncement

24/07/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250724:nRSX3971Sa&default-theme=true

RNS Number : 3971S  Treatt PLC  24 July 2025

TREATT PLC

("Treatt" or "the Group")

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 an update on trading for the financial year ending 30
September 2025 ("FY 2025").

Treatt has continued to face trading headwinds since the announcement of the
interim results on 13 May 2025 which will affect the performance for the full
year. As a result, we now expect revenue of between £130m and £135m and
profit before tax and exceptionals (PBTE) of between £9m and £11m, lower
than previous guidance(1).

This revised outlook has been principally driven by the following incremental
factors:

·    A reduction in second half sales, with revenue now expected to be
£66m, compared with previous guidance of £82m. While we have successfully
converted several pipeline opportunities, including encouraging wins with new
customers in Premium, this conversion has been slower than anticipated.

 

·    Lower repeat customer volumes, driven by competitive pressures and
North American consumer confidence.

 

·    The weaker US dollar exchange rate has resulted in a c£0.5m profit
headwind as a result of translation of USD profits.

 

In the interim results, we drew attention to ongoing market dynamics affecting
the outlook for the year, both of which have continued:

·    Lower demand in Heritage from sustained high citrus oil prices
affecting buying patterns, and leading to reformulation. Although citrus oil
prices have started to reduce more recently, this has continued to impact both
short-term buying patterns in value added citrus products and citrus margins.
We expect a reduction of this adverse impact as citrus oil pricing normalises.

 

·    Consumer confidence in the US, combined with geopolitical and tariff
uncertainty in the US was impacting the overall beverage market in North
America. This has persisted, reflected in extended softening of demand.

 

To mitigate inflationary cost pressures and maintain our investment in growth
areas, we implemented several self-help measures in the first half which are
continuing, with a focus on simplification and efficiency gains. We do not
anticipate any significant increase in administrative expenses in FY 2025
compared to FY 2024.

The £5m share buyback was completed in May 2025. The balance sheet remains
strong, and we now expect to report a low net debt position at the year-end as
a result of the expected lower level of profitability for the period (compared
to previous guidance of £1-3m of net cash).

Treatt continues to execute its strategy, and we remain committed to driving
revenue growth through customer centricity, reach expansion and innovation, as
demonstrated by the planned opening of our Shanghai innovation centre later
this year. We have also strengthened our senior teams to add new skillsets and
a focus on new markets and growth opportunities across the Group.

The sales pipeline has strengthened during the year, and we continue to be
focused on revenue opportunities and better margins in FY 2026 and beyond.

(Note 1 - Previous guidance at 10 April 2025 was £146-£153m revenue and
£16m-£18m PBTE.)

 

Treatt PLC                            +44 (0) 1284
702500

David Shannon                     Chief Executive Officer

Ryan Govender                    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

 

Financial PR

MHP
+44 (0) 20 3128 8100

Tim Rowntree                       Treatt@mhpgroup.com

Eleni Menikou

 

This announcement contains inside information within the meaning of the Market
Abuse Regulation. The person responsible for arranging release of this
announcement on behalf of Treatt is Nick Hartigan, General Counsel &
Company Secretary.

 

About the Group

Treatt is a global, independent manufacturer and supplier of a diverse and
sustainable portfolio of natural extracts and ingredients for the flavour,
fragrance and multinational consumer product industries, particularly in the
beverage sector. Renowned for its technical expertise and knowledge of
ingredients, their origins and market conditions, Treatt is recognised as a
leader in its field. The Group employs approximately 350 staff in Europe,
North America and Asia and has manufacturing facilities in the UK and US. Its
international footprint enables the Group to deliver powerful and integrated
solutions for the food, beverage and fragrance industries across the globe.
For further information about the Group, visit www.treatt.com.

 

CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS

This announcement contains forward-looking statements that are subject to risk
factors associated with, among other things, the economic and business
circumstances occurring from time to time in the countries, sectors and
markets in which the Group operates.  It is believed that the expectations
reflected in these statements are reasonable, but they may be affected by a
wide range of variables which could cause actual results to differ materially
from those currently anticipated.  No assurances can be given that the
forward-looking statements in this announcement will be realised.  The
forward-looking statements reflect the knowledge and information available at
the date of preparation of this announcement and the Group undertakes no
obligation to update these forward-looking statements.  Nothing in this
announcement should be construed as a profit forecast.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTFIFVSDVISFIE