REG - Treatt PLC - Trading Update

TreattAnnouncement

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RNS Number : 6426C  Treatt PLC  09 October 2025

 

9 October 2025

 

TREATT PLC

("Treatt" or "the Group")

Trading update for the year ended 30 September 2025

Treatt, the manufacturer and supplier of a diverse and sustainable portfolio
of natural extracts and ingredients for the beverage, flavour and fragrance
industries, today provides a trading update for the year ended 30 September
2025 ("FY25").

Since the trading update on 24 July 2025, the Group has continued to
experience the trading headwinds set out within that update, including lower
demand in Heritage due to sustained high citrus oil prices, and softer demand
in the North American market due to a softening in consumer confidence.

Heritage, Premium and New revenues declined against FY24, with Heritage lower
by 15%, Premium 13% and New 17%, predominantly due to the headwinds outlined
above. The revenue mix during the year was in line with FY24 at 68%
(Heritage), 23% (Premium) and 9% (New).

As outlined in July, management has maintained a strong focus on commercial
execution and cost controls to mitigate the impact of difficult trading
conditions. Treatt continues to execute its strategy and remains focused on
driving operational efficiencies while positioning the Group for a return to
sustainable growth in the medium-to long-term.

FY25 financial performance is expected to be within the revised management
expectations set out in the Group's trading update on 24 July 2025, with
revenue for the year anticipated to be c.£130.6m (FY24: £153.1m), and profit
before tax and exceptional items (PBTE) anticipated to be c.£10.0m (FY24:
£19.1m). As at 30 September 2025 net debt was £5.9m (FY24: £0.7m), after
taking account of the £5m share buyback in year, reflecting the robust cash
generation and discipline of the business.

On 6 October 2025, a circular in relation to the recommended cash offer for
Treatt by Natara UK Bidco Limited, an entity controlled by funds managed by
Exponent Private Equity LLP, was published by Treatt including, inter alia,
notices of the Court Meeting and General Meeting to approve the transaction.

Treatt will announce the date of its FY25 full year results in due course.

 

Treatt PLC

David Shannon                       Chief Executive
Officer

Manprit Randhawa                 Interim Chief Financial
Officer

 

Joint
Brokers

Investec Bank Plc                   +44 (0) 20 7597 5970

David Anderson

Patrick Robb

 

Peel Hunt LLP                         +44 (0) 20 7418
8900

George Sellar

Finn Nugent

 

Financial PR

MHP
            + 44 (0) 7701 308 818 / + 44 (0) 7710 117 517

Tim Rowntree
Treatt@mhpgroup.com

Eleni Menikou

Veronica Farah

 

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.

 

 

 

APPENDIX

RULE 28 OF THE TAKEOVER CODE

 

Treatt FY25 Profit Forecast

On 24 July 2025 Treatt published a trading update (the "July Trading Update
Announcement"), in which it made the following statement in respect of the 12
months ending 30 September 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".

Application of Rule 28 of the Code

The statement from Treatt above set an expectation for profit before tax and
exceptionals for the year ending 30 September 2025 (the "Treatt FY25 Profit
Forecast"), which for the purposes of Rule 28.1(c) of the Code constitutes a
profit forecast.

The Treatt Directors confirm that, as at the date of this announcement, the
Treatt FY25 Profit Forecast remains valid and that it has been properly
compiled on the basis of the assumptions set out below and that the basis of
accounting used is consistent with Treatt's existing accounting policies which
are in accordance with UK-adopted International Accounting Standards and those
that Treatt applied in preparing its financial statements for the 12 months
ended 30 September 2024.

 

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