Food and beverage ingredients specialist Treatt PLC (LON:TET) said it was encouraged by its burgeoning order book but cautioned on citrus raw material prices.
In the six months to the end of March, Treatt saw revenue rise by roughly 7% year-on-year, or by 5% on a constant currency basis.
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The company said the growth was particularly pleasing against a market backdrop of price weakness in some key raw materials for its largest product category, citrus; Treatt expects this weakness to continue into the second half of the current financial year.
Citrus continues to dominate Treatt’s category mix but the fruit and vegetables, tea and sugar reduction categories are also driving revenues, representing 69% of the year-on-year growth for the period.
Treatt says it has a hedging strategy in place but nonetheless it estimates that exchange rate fluctuations had a negative impact on the half-year performance to the tune of £600,000 or thereabouts.
Despite currency movements, profit before tax for the full year is expected to be in line with market expectations.