Last checked at 2 Oct 2015 07:00
2 October 2015
TREATT PLC
Trading Update for year ended 30 September 2015
Treatt Plc (the 'Group'), the manufacturer and supplier of innovative ingredient solutions for the flavour, fragrance and FMCG industries today publishes a trading update for the year ended 30 September 2015.
The Board is pleased to confirm that the Group has performed well in the second half of the financial year and expects to report revenue and profit before tax for the year ended 30 September 2015 in line with its expectations.
Following a quieter start, momentum grew as the financial year progressed, ending with a stronger fourth quarter. Revenues in the year have been positively impacted by historically high market prices for certain key ingredients, particularly lemon and lime oil, although this has not resulted in higher gross margins.
The cash performance of the Group has been encouraging, with net debt ending the year at its lowest level since 2006. The Board is also pleased to report that the FX strategy in place has prevented movements in FX rates during the year having a material impact on results for the year.
The Group's strategy to innovate and develop relevant and unique ingredient solutions, especially for the beverage market, is gaining further momentum and looking to the financial year ahead, encourages our belief that the Group is on track to build a successful, strong business for the longer term.
Work continues toward facilitating the relocation of the Group's UK site as previously reported, and we anticipate providing an update on progress when we report our full year results for the year ended 30 September 2015 on 8 December 2015.
Enquiries:
Treatt plc +44 (0)1284 702500
Daemmon Reeve Chief Executive Officer
Richard Hope Finance Director
Brokers
Investec Investment Banking
Patrick Robb +44 (0)20 7597 4000
David Anderson
Public relations
Davidson Ryan Dore
Lawrence Dore +44 (0)20 7520 9218
About the Group
Treatt is a leading global independent supplier of innovative ingredient solutions for the flavour, fragrance and FMCG industries renowned for its technical expertise and knowledge of ingredients, their origins and market conditions. With manufacturing facilities in the UK, USA and Kenya, Treatt provides integrated solutions for the food, beverage and fragrance industries.
Earthoil is the cosmetics ingredients division of Treatt, and specialises in pure, organic, fair trade essential and cold pressed vegetable seed oils, offering a broad spectrum of natural raw materials for cosmetic applications.
The Group employs over 300 staff in Europe, North America, Africa, and Asia.
For further information about the Group, visit www.treatt.com and www.earthoil.com.
CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS
This announcement contains forward-looking statements that are subject to risk factors associated with, among other things, the economic and business circumstances occurring from time to time in the countries, sectors and markets in which the Group operates. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a wide range of variables which could cause actual results to differ materially from those currently anticipated. No assurances can be given that the forward-looking statements in this announcement will be realised. The forward-looking statements reflect the knowledge and information available at the date of preparation of this announcement and the Group undertakes no obligation to update these forward-looking statements. Nothing in this announcement should be construed as a profit forecast.