1st Oct 2014 07:05
LONDON (Alliance News) - Ingredients company Treatt PLC Wednesday said it expects to report pretax profit and revenue in line with its expectations for the financial year that ended September 30.
In a trading update, the company said that higher raw material cost of key citrus ingredients will be reflected in higher-than-normal year-end inventory levels, and said that currency moves during the year did not have a "material impact" on its reported results.
Back in July the company said that currency moves, specifically sterling strength, would wipe around GBP0.3 million off of its profit for the current financial year.
"Looking to the year ahead, the level of order books across the group are satisfactory. Whilst raw material prices are expected to remain high, which in turn may impact upon margins, the group expects to continue to see the benefits of its strategy of focusing on selling added-value ingredient solutions to leading FMCG [fast-moving consumer goods] and beverage businesses, whilst maintaining a tight control of costs," the company said in a statement Wednesday.
Fast-moving consumer goods are products that are sold quickly and at relatively low cost.
Earlier this year, the group said that revenue growth in the first half was being driven strong sales growth in the Rest of Europe region and notably in the Americas, where demand was fuelled by the current trend in the US for vegetable-based and calorie-reduced drinks.
Treatt said its will announce its full-year results on December 9.
Treatt shares opened 2.5% higher Wednesday at 144.00 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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