TREATT PLC
HALF YEAR RESULTS
SIX MONTHS ENDED 31 MARCH 2025
Treatt PLC (“Treatt” or the “Group”), the manufacturer and supplier of a diverse and sustainable portfolio of natural extracts and ingredients for the beverage, flavour and fragrance industries, announces its half year results for the six months ended 31 March 2025 (the “Period”).
FINANCIAL HIGHLIGHTS:
| Half year ended 31 March 2025 | Half year ended 31 March 2024 | Change | |
| Revenue | £64.2m | £72.1m | -11.0% |
| Gross profit margin | 24.9% | 27.8% | -290bps |
| Adjusted1 EBITDA | £6.5m | £10.6m | -38.9% |
| Adjusted1 Operating profit | £3.8m | £8.2m | -53.1% |
| Adjusted1 Operating profit margin | 6.0% | 11.3% | -530bps |
| Profit before tax & exceptional items | £3.6m | £7.6m | -52.1% |
| Profit before tax | £2.9m | £7.1m | -59.6% |
| Adjusted basic earnings per share | 4.49p | 9.35p | -52.0% |
| Basic earnings per share | 3.56p | 8.72p | -59.2% |
| Dividend per share | 2.60p | 2.60p | +0.0% |
1 Adjusted measures exclude exceptional items
HIGHLIGHTS:
- Revenue of £64.2m (H1 2024: £72.1m), reflecting lower Heritage and Premium volumes.
- Meaningful strategic progression during the Period, including further broadening of sales into Premium categories
- Adjusted EBITDA of £6.5m (H1 2024: £10.6m)
- Profit before tax and exceptionals (“PBTE”) of £3.6m (H1 2024: £7.6m)
- Net cash position of £0.9m (FY 2024: Net debt £0.7m) reflecting robust cash generation
- Reflecting the Board’s ongoing confidence in Treatt’s medium-term outlook and the Group’s strong cash performance, the £5m share buyback programme announced on 10 April 2025 continues, and today announces a dividend per share of 2.60p (as per prior year)
OUTLOOK
As announced on 10 April 2025, the Group expects full year revenue of between £146m and £153m, and PBTE between £16m and £18m for the full year to 30 September 2025.
This revised outlook was driven by the following key factors:
- Lower demand in Heritage due to sustained high citrus prices affecting buying patterns, has led to customer reformulation, resulting in a decline in value-added citrus volumes, a trend we expect to continue for the remainder of the year. However, we continue to leverage our deep knowledge and product capabilities to provide alternative solutions to our customers, against a challenging market backdrop.
- Consumer confidence in the US has softened impacting the overall beverage market in North America. Macro pressures, including recent geopolitical uncertainty in the US, have and are expected to continue to impact on our sales demand with a softening in the beverage market.
Notwithstanding these trading challenges, we remain confident in delivering our revised full year expectations, underpinned by the following factors:
In terms of sales, H2 is already 50% covered, and in line with historic trends and current indicators we expect 35% to be delivered through repeat customer business. The remaining 15% (a similar level to this time last year) is expected to be delivered through existing pipeline opportunities.
In order to mitigate inflationary cost pressures and invest in growth areas, we have implemented several self-help measures in H1, with focus on simplification and efficiency gains. We do not anticipate any significant increase in administrative expenses in FY25 compared to FY24.
We are encouraged by some exciting wins in Premium, including securing a large new customer in North America, capitalising on the low and no sugar trend. Additionally in New Markets, we have a healthy pipeline of opportunities for H2 and are progressing distribution arrangements to expand our reach. These wins and healthy pipeline provide confidence in our medium-term strategy of differentially growing our Premium category and New Markets while continuing to serve customers with our well established Heritage products for which Treatt is well renowned.
The situation around US trade tariffs remains fluid, and we are following developments closely to better understand the extent to which Treatt will be affected, both directly and indirectly. However, Treatt’s diverse supply chain, including our significant manufacturing presence in the US and UK, gives us the flexibility to support our customers in diverse ways in different markets and, depending on the outcome of various tariff negotiations internationally, could result in revenue growth opportunities arising from our dual manufacturing capabilities
Commenting on the results, Group CEO, David Shannon, said:
“This has been a disappointing first half with revenue and profitability impacted by predominantly short-term trading challenges, but there are encouraging signs for the future.
Treatt made meaningful strategic progression in the first half of the year. We focussed on expanding our reach with customers and I am particularly pleased that our Shanghai innovation centre, which will be instrumental in accelerating growth in China, is on track to open later this year. Our new French sample laboratory opened in April 2025 which will provide faster more efficient customer collaboration. Efforts to expand reach in Asia are progressing well. We are winning with our technologies in line with global trends, including sugar reduction to broaden into high value categories. Our new website also launched last week to support enhanced customer centricity.
We are encouraged by our robust order book and sales pipeline, and expect to realise the benefit of self-help measures in the second half. Our existing sales coverage, expected repeat business, and a robust order book and sales pipeline, together with the benefits of self-help measures implemented in the first half, give us confidence in delivering in line with our revised guidance.”
Analyst and investor conference call
An in-person presentation for analysts and investors will be held at 9.30 a.m. today, 13 May 2025. For details and to confirm attendance, or for webcast information, please contact MHP at treatt@mhpgroup.com. A recording will be made available after the event.