TREATT PLC
(“Treatt” or “the Group”)
FULL YEAR RESULTS
YEAR ENDED 30 SEPTEMBER 2020
Profit before tax and exceptional items1 up 11.3% and dividend per share increased by 9.1% – a strong performance in unprecedented times
Treatt plc, the manufacturer and supplier of a diverse and sustainable portfolio of natural extracts and ingredients for the beverage, flavour and fragrance industries, today announces its results for the year ended 30 September 2020.
FINANCIAL HIGHLIGHTS1:
|
|
Financial |
Financial |
Change |
|
Revenue |
£109.0m |
£112.7m |
(3.3)% |
|
Gross profit |
£31.9m |
£28.7m |
+11.2% |
|
Gross profit margin |
29.2% |
25.4% |
+380 bps |
|
Profit before tax and exceptional items |
£14.8m |
£13.3m |
+11.3% |
|
Adjusted basic earnings per share |
19.72p |
17.82p |
+10.7% |
|
Final dividend per share |
4.16p |
3.80p |
+9.5% |
|
Total dividend per share |
6.00p |
5.50p |
+9.1% |
· Cash generated from operations in the year was £15.7m (2019: £20.5m) and free cash flow2, excluding the costs associated with the UK relocation, was £10.0m.
OPERATIONAL HIGHLIGHTS:
· Profit before tax and exceptional items exceeded pre COVID-19 Board expectations.
· Delivering good progress against 2022 strategy.
- 74% of Group revenue from natural and clean-label products.
· Diversification of portfolio progressing well.
- Strong growth in gross margin due to improved product mix and lower commoditised citrus revenues.
- Revenue growth of 4.4% in non-citrus categories with 16.1% growth in health & wellness category.
· UK relocation project progressing well and on budget – transition expected to commence in mid-2021.
· In June 2020, the Group's Kenyan operations were disposed of for a nominal sum.
1 All measures are based on continuing operations.
2 Free cash flow is calculated as net cash from operating activities (as shown in the Group statement of cash flows) minus the purchase of property, plant, equipment and intangible assets, adjusted to exclude the UK relocation costs.
Commenting on the results, CEO Daemmon Reeve said:
“Treatt has performed strongly during what has been an unprecedented year. To have exceeded the expectations we had at the start of the year before the outbreak of the pandemic, speaks volumes about the resilience of the business, our strategy and market position. I would like to extend my thanks to all our colleagues for their efforts to help us achieve these results.
We continue to focus on new market opportunities and consumer trends including those in coffee, natural extracts and the burgeoning hard seltzer market. We remain confident in the future growth potential of the business and believe we are in a robust position to manage any further impacts from the pandemic.
Building on the excellent fundamentals of our business and broad added-value product offering, we have made a strong start to our new financial year ending 30 September 2021 and the Group continues to perform in line with the Board's expectations.”