Treatt PLC, the manufacturer and supplier of extracts to the perfume and beverage industries, said profit is set to meet revised forecasts for the year to 30 September 2022.
In a trading update, Treatt said it expects to report profit before tax and exceptional items of between £15mln and £15.3mln, in line with guidance that was amended on 15 August.
Revenue for the year is expected to grow by 13% to £140mln, or 9% on a constant currency basis, in line with market expectations, driven by “citrus, synthetic aroma and healthcare categories”, with citrus contributing towards 48% of total revenue, the company said said.
"We delivered continued positive growth in sales for the year, reflecting a good performance across the vast majority of our categories, however, we were impacted by some specific factors in the second half which ultimately led to a disappointing outcome for the full year,” said chief executive Daemmon Reeve.
Treatt said it heads into the new financial year confident in delivering top-line growth, adding it does not anticipate any increase in administrative expenses outside of the normal rate of inflation.
“Whilst the macro environment remains uncertain, we are encouraged by prevailing consumer trends, particularly in the beverage market, which play into our specialist expertise in flavour,” Reeve added.
Net debt is roughly £23mln, up from £9.1mln the year prior due to investment in facilities and levels of inventory.