2nd Oct 2018 10:56
LONDON (Alliance News) - Treatt PLC said Tuesday it expects to report annual pretax profit in line with management's previous expectations.
The manufacturer of flavouring ingredients added that it performed well in the second half of the year ended September, despite some foreign exchange headwinds.
Revenue on a like-for-like basis is expected to increase by 9% on 2017, when the company reported GBP109.6 million in sales.
"All product categories have grown over the past twelve months, with the key growth drivers of citrus, tea and sugar reduction continuing to deliver," the company said.
However, gross margins are expected to fall "a little" compared to the previous year, due to the impact of foreign exchange movements, fluctuations in raw material prices and pricing pressures.
On an operational level, Treatt added its USD14 million US expansion is progressing "well, on time and on budget", building work is ongoing as the company expects the facility to be fully operational by the first half of 2019.
"This will provide much-needed additional manufacturing capacity as well as enhancing the group's scientific capabilities in the US," it explained.
Meanwhile in the UK, plans for the company's site relocation continue to make progress. The new site will be a "purpose-built science-led facility designed to drive growth with domestic and international fast-moving consumer goods companies as well as creating a scalable business for the long term".
Looking ahead, the food flavouring producer said it looks to the new year with confidence.
Treatt shares were trading down 5.6% at 455.20 pence each.
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