Treatt PLC (LSE:TET) shares dropped 21% in early trading after the natural extracts specialist slashed its full-year revenue and profit guidance, blaming weaker sales and challenging market conditions.
The group now expects revenue of £130–£135 million and profit before tax and exceptionals of £9–£11 million for the year to September, sharply below previous forecasts.
A slower conversion of new business, competitive pressures, and weaker consumer confidence in North America were all cited for the downgrade, with second-half revenue now set to be £66 million compared with earlier guidance of £82 million.
A softer US dollar has also knocked profits.
Treatt continues to face headwinds in its heritage citrus business, where high oil prices and changing buying patterns have dampened demand, although the company expects conditions to improve as prices normalise.
Management said self-help measures are underway to keep costs in check and protect investment in innovation, such as the upcoming Shanghai innovation centre.
The stock fell 53p to 200p.