10th Apr 2025 13:24
(Alliance News) - Treatt PLC on Thursday lowered its annual profit and revenue expectations amid weaker consumer confidence in the US and reduced demand for its Heritage and Premium product lines.
Shares in Treatt were down 34% to 212.00 pence in London on Thursday afternoon, hitting a 12-month low.
The Suffolk, England-based extracts and ingredients manufacturer now expects revenue for the year ending September 30, 2025, to be between GBP146 million and GBP153 million, down from GBP153.9 million a year prior.
It also revised its forecast for pretax profit before exceptional items to between GBP16 million and GBP18 million, compared to GBP19.1 million in financial 2024.
The downgrade follows a subdued first half, during which revenue declined 11% to GBP64.2 million in the six months to March 31 from GBP72.1 million in the same period from the prior year. Pretax profit before exceptionals fell to around GBP3.6 million from GBP7.6 million, while adjusted earnings before interest, taxes, depreciation, and amortisation dropped to approximately GBP6.6 million from GBP10.6 million.
Treatt blamed sustained high citrus prices and macroeconomic pressures, particularly in North America, for a fall in value-added citrus sales and softening demand across key premium categories.
However, the company said it had seen encouraging wins in the Premium segment and New Markets, including China.
Despite the weaker financial outlook, Treatt announced a share buyback programme of up to GBP5 million, citing a strong cash position and confidence in its medium-term strategy.
The company ended the half year with net cash of GBP900,000, swinging from net debt of GBP700,000 at the end of the previous financial year.
By Eva Castanedo, Alliance News reporter
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