4th Oct 2019 08:00
(Alliance News) - Treatt PLC on Friday confirmed that it has performed "well" in the second half of its recently ended financial year, notwithstanding a "very significant" fall in key citrus raw material prices and some foreign exchange headwinds.
The supplier of ingredients for the flavour, fragrance, beverage and consumer product industries said it expects to report pretax profit before exceptional items for the year to the end of September in line with its expectations.
Revenue for the year is expected to be GBP112.7 million, an increase of 1% compared with the prior year. On a constant currency basis revenue decreased by 2%, Treatt noted.
The company explained that its revenue for the year has been impacted by a "substantial" fall in citrus raw material input prices, with orange oil prices falling by more than 50% over the year and lemon oil prices also seeing substantial price weakness.
More positively, the company noted that non-citrus revenue - which includes tea, health & wellness, and fruit & vegetables - recorded double-digit growth, as its "clean label innovations" continue to perform well.
Looking ahead, Treatt said the impact of lower citrus raw material prices is likely to continue to affect its citrus business, whilst the company said it expects the momentum in its non-citrus categories to continue, and innovations in cold brew coffee, a new market for Treatt, to gain traction.
Treatt will publish its annual results on November 26, it said.
By Evelina Grecenko; [email protected]
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