Shares of Treatt PLC (LSE:TET) slumped as the firm reported lower first half profit and an unchanged profit forecast for the financial year.
The stock slid 8.95% to 914.10p on Tuesday morning as the food extracts and ingredients company reported £6.3mln of pre-tax profit for the six months to end-March, compared to £10.4mln a year earlier, on revenues that grew 9% to £66.3mln.
For the full year, management said revenue growth is now expected to exceed 15%, though profit guidance was not hoisted, Treatt said to be on track to deliver pre-tax market consensus of £21.7mln.
Profit expectations remain unchanged as the company plans to invest in the business, with investments in its UK site expected to be 5% higher than previously cited at £46mln-£47mln, "as a result of inflationary cost pressures and some higher than originally expected commissioning expenses".
Treatt cited confidence in the outlook, with an order book up over 25% compared to a year ago.
A dividend of 2.50p per share was declared, up from 2.00p in the prior period.