(Sharecast News) - Food and beverage ingredients specialist Treatt said in an update on Thursday that during the first quarter, it experienced a year-on-year decline in revenue, in line with expectations.
The London-listed company, which was holding its annual general meeting, said the decline was primarily due to destocking activities.
However, it said there were positive indications that destocking trends were reversing, with Treatt expecting a return to more typical customer demand levels in the upcoming second quarter.
Treatt said it remained committed to achieving volume growth with a robust pipeline of opportunities, both with new and existing customers.
It said the opportunities aligned with long-term industry trends focussed on health and wellness, as well as the increased use of natural extracts.
Treatt said it had established a strong market presence in those areas, and was actively exploring growth opportunities in new markets.
The company also emphasised its dedication to cash generation, adding that it was on track to further reduce its net debt throughout the year, aligning with management expectations.
At 1447 GMT, shares in Treatt were down 3.72% at 478.5p.
Reporting by Josh White for Sharecast.com.
Treatt (TET)