10th Oct 2024 14:38
(Alliance News) - Treatt PLC on Thursday said it expects growth in annual profit in 2024, following strong sales momentum in its second half.
The Suffolk-based extracts and ingredients manufacturer said it expects pretax profit and exceptional items for the financial year ended September 30 to grow 8.7% to around GBP18.8 million from GBP17.3 million last year. This was in line with management expectations for the year.
Treatt also expects revenue to rise by 5.3% to around GBP155.2 million from GBP147.4 million in 2023, and adjusted earnings before interest, tax, depreciation and amortisation to increase 7.4% to approximately GBP24.7 million from GBP23.0 million.
The company said it was "particularly pleased" with its second-half sales momentum, which was led by improved revenue in its heritage segment and strong regional growth in China. It reported an overall sales growth of 16% for the year.
Chief Executive Officer David Shannon said: "I am pleased that we will report good growth in both sales and profit for the year, reflecting the determined conversion of our order book and strong cost discipline. Revenue growth in the second half of the year in particular was strong, with sales pipeline conversion and demand normalising following industry destocking. With our value-add products, and available manufacturing capacity following the investments in recent years we will start to target greater customer reach in adjacent markets and new territories. We are confident in Treatt's long-term prospects."
Shares in Treatt were up 10% at 469.50 pence each in London on Thursday afternoon.
By Emily Parsons, Alliance News reporter
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