13th May 2025 11:01
(Alliance News) - Treatt PLC on Tuesday said its earnings fell in a "disappointing first half" due to impacts from "short-term trading challenges".
The Suffolk, England-based extracts and ingredients manufacturer said pretax profit plunged 60% to GBP2.9 million in the six months to the end of March from GBP7.1 million a year ago.
Diluted earnings per share slid 59% to 3.55 pence from 8.69 pence.
Revenue fell 11% to GBP64.2 million from GBP72.1 million, while cost of sales were down 7.5% to GBP48.2 million from GBP52.1 million.
Treatt said revenue decreased due to lower Heritage volumes because of sustained high citrus prices affecting buying patterns, as well as lower consumer confidence in North America.
The company declared an interim dividend of 2.60 pence per share, unchanged from the prior year.
"This has been a disappointing first half with revenue and profitability impacted by predominantly short-term trading challenges, but there are encouraging signs for the future," said Chief Executive Officer David Shannon.
In April, the company cut its outlook due to lower sales in the first half.
Treatt now expects revenue for the year between GBP146 million and GBP153 million, down from GBP153.9 million a year prior.
It expects pretax profit before exceptional items between GBP16 million and GBP18 million, compared to GBP19.1 million in financial 2024.
Treatt said it has implemented "self-help measures" in the first half of the year focused on simplification and efficiency gains. As such, it does not expect administrative expenses to increase this year.
The firm said it was encouraged by "exciting wins" in its Premium lines, including a "large new customer" in North America.
The situation around US trade tariffs remains fluid, but it said it has "flexibility" in different markets given its "significant manufacturing presence in the US and UK".
Treatt said the outcome of international tariff negotiations could result in revenue growth opportunities due to its dual manufacturing capabilities.
CEO Shannon said: "We are encouraged by our robust order book and sales pipeline, and expect to realise the benefit of self-help measures in the second half. Our existing sales coverage, expected repeat business, and a robust order book and sales pipeline, together with the benefits of self-help measures implemented in the first half, give us confidence in delivering in line with our revised guidance."
Shares in Treatt were down 0.9% to 269.00 pence in London on Tuesday morning.
By Michael Hennessey, Alliance News reporter
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