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The Markets
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The Markets
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Food & drink

Treatt rises as first-half revenue jumps, trading in line

Treatt PLC shares rose 3.9% in early exchanges in London after the company reported a strong start to the financial year with first-half revenue at record levels.

The manufacturer and supplier of natural extracts and ingredients for the beverage, flavour and fragrance industries said first-half revenue grew 15% to £75.9mln from £66.3mln previously while pre-tax profit rose to at least £7.1mln in the period from £6.3mln a year prior.

In a trading update the Suffolk, England-based firm said successful pricing actions covered the impact of raw material inflation while coffee growth was ahead of expectations. It added trading was in line with the board's expectations for the full year.

Despite the uncertain macro environment, beverage volumes have shown resilience, the company said, with particularly encouraging progress in Citrus, where margins have improved across several of key value-added products.

Treatt said second-quarter momentum was particularly encouraging and it enters the second half with a strong order book and conversion of sales pipeline.

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