Operational progress in a challenging year; well-positioned for the future
Treatt, the manufacturer and supplier of a diverse and sustainable portfolio of natural extracts and ingredients for the beverage, flavour and fragrance industries, announces today its audited results for the financial year ended 30 September 2025.
| Financial year ended 30 September | |||
| 2025 | 2024 (restated*) | Change | |
| Revenue | £132.5m | £150.2m | (11.8)% |
| Gross profit margin | 25.9% | 29.3% | (340)bps |
| Adjusted EBITDA1,2 | £16.2m | £24.4m | (33.6)% |
| Profit before tax and exceptional items | £10.3m | £18.5m | (44.4)% |
| Profit before tax | £7.0m | £17.9m | (60.9)% |
| Adjusted basic earnings per share2 | 13.40p | 23.58p | (43.2)% |
| Basic earnings per share | 8.38p | 22.71p | (63.1)% |
| Total dividend per share | 5.60p | 8.41p | (33.4)% |
| Net debt | £5.9m | £0.7m | £(5.2)m |
| Adjusted net operating margin2 | 8.1 % | 12.9% | (480)bps |
| Adjusted return on average capital employed2,3 | 7.5% | 13.3% | (580)bps |
1 EBITDA is calculated as operating profit plus depreciation and amortisation.
2 Adjusted measures exclude exceptional items and the related tax effect.
3 Return on average capital employed is calculated by dividing operating profit (as shown in the Group income statement) by the average capital employed in the business, which is calculated as total equity (as shown in the Group balance sheet) plus net debt (as shown in the Group reconciliation of net cash flow to movement in net debt), averaged over the opening, interim and closing amounts. The adjusted measure excludes exceptional items.
* As explained further in note 12 of these financial statements, revenue, cost of sales and all profit-related metrics for the year ended 30 September 2024 have been restated.
FINANCIAL HIGHLIGHTS:
· Revenue and profit in line with revised expectations as set out in July 2025
· Revenue of £132.5m (FY24*: £150.2m), reflecting the impact of continuing external headwinds including sustained high citrus prices and ongoing softness in US consumer confidence
· Profit before tax and exceptional items declined to £10.3m (FY24*: £18.5m), primarily from prolonged challenging market conditions
· Year-end net debt increased to £5.9m (FY24: £0.7m), reflecting the £5.0m share buyback programme which completed in May 2025, demonstrating continued robust cash generation and discipline
· Final dividend of 3.00p per share, resulting in a total dividend of 5.60p per share consistent with our stated policy
OPERATIONAL HIGHLIGHTS:
· Important win in our sugar reduction offering, representing a significant move into a high value category
· Strategic progress made with the expansion of European sales teams in Germany and France, expanding the Group’s reach in the region
· Strong financial discipline: focus on cost controls to mitigate the impact of difficult trading conditions and on operational efficiency, while continuing to invest in product innovation and sales teams
POST YEAR END PROGRESS AND OUTLOOK:
· Commercial progress and growth in Asia (ex. China): South-East Asia distribution agreement signed with IMCD in December 2025, expanding Treatt’s presence in the region
· Launch of commercial and innovation facility in Shanghai, China, in December 2025
· As announced separately today, the Company has entered into a Relationship Agreement with Döhler Finance Management B.V. and appointed Helga Moelschl as a non-Independent Non-executive Director, with effect from 1 February 2026
· FY26 performance to date in line with the Board’s expectations
Manprit Randhawa, Interim Group Managing Director, commented:
“It has been a challenging year for Treatt, exacerbated by weak market conditions and soft consumer demand in the US, tariff uncertainty and sustained high citrus prices.
“Treatt has made good strategic progress and delivered revenue and profit in line with our revised guidance set out in the Group’s trading update in July despite the considerable headwinds faced during the year. This was achieved through a sharp focus on costs, particularly in the second half of the year to mitigate impact on demand. We achieved this while continuing to invest in innovation and sales teams across the business. We are really pleased with a number of overseas initiatives during the year: the launch of our new Shanghai innovation centre in China, and expanding our sales teams in France and Germany.
“Treatt is looking to the future with optimism after a period of turbulence. We have considerable strengths to build on, including our exceptionally talented people, state-of-the-art facilities with significant capacity for growth, and expertise built over 140 years. These, together with the Group’s excellent industry reputation, underpin the Board’s confidence for the future.”
Analyst and investor conference call
A pre-recorded presentation of the FY results is available to view on the company’s investor relations site: https://www.treatt.com/investor-relations/financial-results-presentations/webcasts
For further information, please contact MHP at treatt@mhpgroup.com.