Treatt PLC (LON:TET) saw its shares move higher on Tuesday on the company forecast a strong performance for its key citrus business in the second half of its current year.
In a trading update for the six months ended 31 March, the ingredients company said despite the coronavirus pandemic, there had “not been any adverse effect” on its performance and it was currently trading in line with expectations.
The firm said it expected a “sharp fall” in citrus raw material prices in the previous year to continue to impact its revenues for the first half, and as a result revenue in the period is expected to be down 5.1% year-on-year.
However, despite this, the company said prices were “firming once more”, which should result in a “stronger performance” for the category in the second half.
Treatt also highlighted “good growth” in revenues from its fruit and vegetables, tea and health and wellness businesses.
“The vast majority of Treatt's portfolio is targeted at the growing demand from consumers for more natural and clean-label products which is helping to drive our financial performance as well as our encouraging opportunity pipeline”, the company said.
Looking ahead, the company said it is “encouraged” by its order book and current demand into its peak seasonal period, and that while it was difficult to determine the impact of coronavirus on demand, its early experience was that demand was “robust” and trading remained in line with its expectations.
However, the outbreak had slowed construction of the firm’s new facility in the UK, and as a result, its relocation may not take place until 2021.
Shares in Treatt jumped 11.3% to 467.5p in early trading on Tuesday.