7th May 2019 09:15
LONDON (Alliance News) - Flavouring and fragrance firm Treatt PLC boosted its interim dividend Tuesday after profit and revenue grew amid good growth in its higher-margin business despite weakness in other segments.
For the six months ended March, pretax profit widened 5.4% to GBP5.9 million from GBP5.6 million the year prior. This was after revenue rose 5.6% to GBP56.6 million from GBP53.6 million the year before.
"Once again it is pleasing to report encouraging strategic progress," Treatt Chief Executive Officer Daemmon Reeve said. "All categories have performed well despite cyclical weakness in some citrus raw material markets with particularly encouraging growth in our higher margin tea, sugar reduction and fruit and vegetable categories supporting the strong trend towards better for you and clean label, more natural beverages."
Overall, gross profit margins expanded to 25.0% from 23.6% the year prior.
"The past six months have seen much work across the business strengthening our teams, building and planning infrastructure to drive future growth, establishing Treatt in new growth markets and expanding our offer in established markets," Reeve added. "These actions were achieved whilst improving profitability and margins and give the board confidence that the business is well placed to deliver on its strategic objectives over the coming years."
Treatt proposed a 1.70 pence per share interim dividend, up 6.3% from 1.60p the year prior.
"With order books comfortably up on a year ago, we expect the encouraging performance in the first half to continue into the second half," Reeve continued. "Whilst there is still much to do to complete the year the board remains confident that the group will meet its expectations for the financial year ending 30 September 2019."
Shares in Treatt were 2.0% lower at 401.70 pence on Tuesday.
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