A strong Treatt PLC trading update saw the shares whipped up over 14% higher to 484.5p, having sunk to a three-and-a-half-year low at the start of the week.
The maker of natural extracts and ingredients for the beverage, flavour and fragrance industries said its performance proved resilient in the face of customer destocking, with full-year sales up around 5% to £147 million.
Underlying profit before tax is expected to come in at around £17 million, up 11% on the previous year as margins were helped by the company raising prices to recover raw material inflation, and imposed 'self-help' measures.
As a result of strong cash generation, net debt was more than halved to £10.5 million, lower than forecast.
Chief executive Daemmon Reeve said the positive growth in sales and profit reflected the "significant price increase programme and ongoing resilience in our beverage end markets".
He said certain customers had reduced inventories in response to interest rate rises.
"However, we are seeing some early signs of a reversal of this temporary destocking effect, and have also been able to mitigate the effect of this impact with strong cost discipline and other self-help measures."