26th Nov 2019 10:33
(Alliance News) - Food ingredients manufacturer Treatt PLC on Tuesday upped its dividend payment following "solid results" for financial 2019, driven by diversification of its product mix and growth in non-citrus categories.
Treatt shares were down 2.6% at 426.65 pence each in London.
The Suffolk, England-based company, which manufactures ingredient solutions for the flavour, fragrance, beverage and consumer product industries, said revenue for the year to September 30 grew 0.5% year-on-year to GBP112.7 million from GBP112.2 million, with continued growth across the company's main product categories other than citrus.
Revenue in citrus category, which represents 54% of annual sales, fell by 10% as the result of a sharp fall in orange oil prices as well as lower lemon oil prices. Across non-citrus categories, revenue grew by an encouraging 16% with tea, health & wellness, and fruit & vegetables driving performance.
Pretax profit for financial 2019 increased 8.7% year-on-year to GBP12.5 million from GBP11.5 million, while adjusted pretax profit was up 5.2% at GBP13.3 million.
"I am pleased to report that the group delivered solid results for the year. The strength of our strategy shone through strongly as we increased our profitability in the face of citrus market headwinds. To have decoupled our financial performance from external market factors which were once a dominant feature of Treatt's financial performance augers well for our future," said Chief Executive Daemmon Reeve.
"We are driving ahead with confidence and whilst it is still early in the new financial year, the group continues to perform in line with the board's expectations for the year ending 30 September 2020," Reeve added.
Treatt has declared a final dividend of 3.80p per share, up from 3.50p, giving a total payout of 5.50p, up 7.8%.
By Tapan Panchal; [email protected]
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