Treatt PLC
LSE:TET
Treatt PLC
Treatt Plc engages in the manufacture of ingredient solutions for the flavour, fragrance, beverage, and consumer product industries. The company is headquartered in Bury St Edmunds, Suffolk and currently employs 423 full-time employees. The firm has manufacturing facilities in the United States, United Kingdom and China. The firm's geographical segments include United Kingdom, Rest of Europe, The Americas and Rest of the World. The firm has a range of products in various categories, which include citrus, coffee, tea, health and wellness ingredients, as well as fruit and vegetable extracts, herbs, spices and floral ingredients and synthetic aroma ingredients. The firm offers everything from natural products to tailor-made blends and price-stable synthetics. The firm's subsidiaries include R C Treatt & Co Limited, Treatt USA Inc and Treatt Trading (Shanghai) Company Limited.
Treatt Plc engages in the manufacture of ingredient solutions for the flavour, fragrance, beverage, and consumer product industries. The company is headquartered in Bury St Edmunds, Suffolk and currently employs 423 full-time employees. The firm has manufacturing facilities in the United States, United Kingdom and China. The firm's geographical segments include United Kingdom, Rest of Europe, The Americas and Rest of the World. The firm has a range of products in various categories, which include citrus, coffee, tea, health and wellness ingredients, as well as fruit and vegetable extracts, herbs, spices and floral ingredients and synthetic aroma ingredients. The firm offers everything from natural products to tailor-made blends and price-stable synthetics. The firm's subsidiaries include R C Treatt & Co Limited, Treatt USA Inc and Treatt Trading (Shanghai) Company Limited.
Record Sales: Treatt posted record first-half sales of £76 million, up 14.6% year-on-year, driven by strong performance in value-added citrus, coffee, and China.
Profitability: Adjusted profit before tax rose 15% to £7.3 million, while EBITDA improved by nearly 30% compared to last year.
Margin Expansion: Gross margin increased by 70 basis points to 28.2%, reflecting effective price increases and favorable product mix.
Cash & Debt: Strong cash generation led to a reduction in net debt by £4.7 million to £17.7 million, with further declines to £12–14 million expected by year-end.
Cost Discipline: Headcount was reduced by 7% and a revised currency hedging strategy was implemented; admin expenses grew modestly due to depreciation and inflation.
Outlook: Management expects full-year profit to be in line with market expectations and sees positive momentum from the U.S. FMCG, citrus, China, and coffee segments.
Volume vs. Price: 2023 growth is primarily price-driven; management expects a return to volume-led growth in 2024.
China & Coffee: Significant growth in China with direct sales to major beverage brands, while premium cold brew coffee sales are expanding, especially in the U.S. and U.K.
