(Sharecast News) - Treatt said it would pay a final dividend in line with policy and that it was cautiously optimistic about the outlook for the current year.
The ingredients supplier said profit for the year to the end of September was in line with expectations before the Covid-19 crisis, helped by 16% revenue growth for health and wellness products.
Annual pretax profit will be about £14m and revenue will drop 3% to about £109m, Treatt said. Revenue was affected by a previously announced slump in the price of orange oil whose products make up 22% of Treatt's revenue. Despite this Treatt's citrus division increased profit as it shifted to higher value ingredients and demand for citrus fragrances in cleaning products rose.
The company has performed well during the Covid-19 crisis as demand has increased for herbal teas and other wellbeing-related products as well as ingredients for cleaning products. Treatt also said construction of its new UK facility was almost finished and that it expects to start moving in during spring 2021.
Treatt said: "Despite the significant disruption to consumer demand across our markets, we continue to diversify our revenues and position the group as an added-value natural extracts and ingredients provider across a range of growth categories. As such, we are cautiously optimistic about our growth trajectory into FY21."
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