Treatt PLC Trading Update (7416O)
04 Octubre 2019 - 1:00AM
UK Regulatory
TIDMTET
RNS Number : 7416O
Treatt PLC
04 October 2019
Information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
4 October 2019
TREATT PLC
("Treatt" or "the Group")
Trading update for year ended 30 September 2019
Treatt, the manufacturer and supplier of innovative ingredient
solutions for the flavour, fragrance, beverage and consumer product
industries today publishes a trading update for the year ended 30
September 2019.
The Board is pleased to confirm that, notwithstanding a very
significant fall in certain key citrus raw material prices, and
some foreign exchange headwinds, the Group has performed well in
the second half of the financial year. Consequently, the Board
expects to report profit before tax and exceptional items for the
year ended 30 September 2019 in line with its expectations.
Revenue for the year is expected to be approximately GBP112.7m,
an increase of 1% (or decrease of 2% in constant currency) compared
with the prior year. As reported in May 2019, revenue for the year
has been impacted by a substantial fall in citrus raw material
input prices, with orange oil (which represents approximately 33%
of Group revenue) prices falling by more than 50% over the year and
lemon oil prices also seeing substantial price weakness.
Although reported revenue from our citrus category (representing
54% of Group revenue) fell by 10%, our strategy to diversify our
portfolio of natural ingredient solutions delivered a very
encouraging 16% growth in non-citrus revenues: tea was up 42%,
health & wellness (including sugar reduction) grew by 23% and
fruit & vegetables grew by 35% as the Group's clean label
innovations continue to perform well in the market place. Whilst
'natural' now represents approximately 81% of the Group's
portfolio, we also saw healthy growth of 16% in the synthetic
flavour and fragrance market.
During the 2019 financial year the Group made significant
progress with its two principal strategic investment projects being
the expansion of our US facility and the relocation of our UK
facility. We successfully completed the further development of our
US facility, doubling the capacity in our non-citrus natural tea,
health & wellness and fruit & vegetable categories as well
as quadrupling the size of our US technical and innovation centre
as we invest more in R&D to drive further product innovation.
In addition, and as we reported last month, the main contractors
have begun work on our new UK facility which we expect to
transition across to in the latter half of 2020.
There was a net improvement in working capital with lower
inventories and a reduction in trade debtors contributing to a
strong cash performance during the financial year. The Group ended
the year with a net cash balance of GBP15.8m, being a net inflow
for the year of GBP5.8m.
As we begin our new financial year, the impact of lower citrus
raw material prices is likely to continue to affect our citrus
business, whilst we expect the momentum in our non-citrus
categories to continue and innovations in cold brew coffee, a new
market for Treatt, to gain traction. As new capacity at our US
facility comes on stream the business will begin to see the
benefits from this investment and, as we look forward to moving
into our new UK facility later next year, the Board enters the year
ahead with confidence.
Treatt's results for the year ended 30 September 2019 will be
announced on 26 November 2019.
Enquiries:
Treatt plc +44 (0)1284 702500
Daemmon Reeve Chief Executive Officer
Richard Hope Chief Financial Officer
Broker
Investec Bank Plc
Patrick Robb +44 (0)20 7597 5970
David Anderson
Alex Wright
Public relations
DRD Partnership
Lawrence Dore +44 (0)20 3951 0349
About the Group
Treatt is a global, independent supplier of innovative
ingredient solutions for the flavour, fragrance and multinational
consumer product industries, particularly in the beverage sector.
Renowned for its technical expertise and knowledge of ingredients,
their origins and market conditions, Treatt is recognised as a
leader in its field.
The Group employs over 300 staff in Europe, North America,
Africa and Asia and has manufacturing facilities in the UK, USA and
Kenya. Its international footprint enables the Group to deliver
powerful and integrated solutions for the food, beverage and
fragrance industries across the globe.
For further information about the Group, visit
www.treatt.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.
This information is provided by RNS, the news service of the
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END
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