(Sharecast News) - Ingredients manufacturer Treatt said on Wednesday that it had delivered a "solid performance" in the first half of its current trading year, with sales accelerating in Q2 and year-on-year profit growth.
Treatt said pre-tax profits were expected to be "marginally ahead" of last year at approximately £7.5m, despite interim revenues declining from £76.0m to £72.1m due to a subdued Q1 performance. Q2, however, saw sales grow by 5.1% year-on-year.
The London-listed firm also highlighted an improved net operating margin of roughly 11.0%, up from 10.1% a year ago, reflecting embedded cost disciplines and self-help measures.
Treatt added that when looking to the second half, it now has "a solid sales order book" and "healthy sales pipeline", with second-half pre-tax earnings anticipated to be in line with internal expectations.
Interim chief executive Ryan Govender said: "Treatt delivered a robust performance in the first half, making good progress in line with our strategic goals. We are particularly pleased with progress in China, where we continued to invest and consolidate our position, and in our higher margin Premium categories where we have a number of active pipeline opportunities. Momentum in the second quarter was strong, and we recorded our highest-ever monthly revenue in March."
As of 0915 BST, Treatt shares were up 9.60% at 443.35p.
Reporting by Iain Gilbert at Sharecast.com
Treatt (TET)