20th May 2014 12:01
LONDON (Alliance News) - Ingredients company Treatt PLC Tuesday reported a higher pretax profit for the first half of its financial year, as revenues grew 11% and demand in the Americas was fuelled by the current trend in the US for vegetable-based drinks.
The manufacturer and supplier of flavour, fragrance and cosmetic ingredients declared a 13% increase in its interim dividend to 1.24 pence per share, as its pretax profit rose to GBP2.8 million in the six months to March 31 from GBP2.0 million a year earlier, on the back of an 11% increase in revenues to GBP37.1 million.
The group said its profit remains seasonally biased towards the second half of the year.
Treatt said that trading in the third quarter has started steadily, with order books up on the previous year.
"The board remains confident at this early stage of the second half that the group will meet its expectations for the year ending September 30 2014," the company said in a statement.
Treatt said that sales in the period were driven by a strong sales growth in the Americas and the Rest of Europe region, boosted by new business wins, especially in the US markets, where demand is being fuelled by the trend for vegetable-based and calorie-reduced beverages. The group also reported sales growth in the Rest of the World region, but a decline in sales in the UK.
Earthoil, the group's personal care division which specialises in organic and fair trade ingredients, also continued to perform well, Treatt said.
Treatt shares were trading 4.9% higher at 162.00 pence Tuesday afternoon.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Treatt