Treatt Plc Half Year Results
Six Months Ended 31 March 2022
10 May 2022
On track to deliver full year expectations – reversion to H2 seasonality; order book up over 25%
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 2022.
FINANCIAL HIGHLIGHTS:
|
Half year ended 31 March 2022 |
Half year ended 31 March 2021 |
Half year ended 31 March 2020 |
|
|
Revenue |
£66.3m |
£60.8m |
£53.6m |
|
Gross profit margin |
27.5% |
35.0% |
26.2% |
|
Operating profit before exceptional items |
£6.6m |
£10.6m |
£6.1m |
|
Profit before tax and exceptional items |
£6.3m |
£10.4m |
£6.1m |
|
Adjusted basic earnings per share |
8.21p |
12.93p |
8.08p |
|
Dividend per share |
2.50p |
2.00p |
1.84p |
HIGHLIGHTS & OUTLOOK:
- Record H1 revenue with 9% growth across the portfolio.
- As anticipated, returning to traditional H2 profit weighting:
- H1 2021 benefitted from COVID-19 related retail channel growth and significant product launches.
- Normal seasonality returning driven by Spring/Summer beverage consumption in Northern hemisphere.
- Strong anticipated growth in healthier living categories expected to drive higher margins.
- H1 2022 ended strongly, and momentum has continued into H2; order book up by more than 25% compared with equivalent prior year period giving confidence in the outlook.
- Revenue growth for full year now expected to exceed 15%; on track to deliver full year PBT market consensus of £21.7m1.
- Ongoing investment in the Group's capacity, people and innovation to deliver long-term growth.
Commenting on the results, Group CEO, Daemmon Reeve, said:
“We continue to grow our revenue and have a very strong order book going into the second half of the financial year. The momentum we have in the business underlines the importance of the significant benefits we expect to gain from both investment in our people and the increased capabilities and capacity we will unlock from our new UK facility at Skyliner Way.
“Our established business model and track record of managing the input costs of our natural products has meant that we continue to deliver outstanding service for our customers and healthy returns for our shareholders, despite supply chain and other macro headwinds.
“Branded beverages are seen as affordable luxuries, and so we are well insulated against rising inflationary pressures and our strong order book gives us confidence that we are on track to perform in line with expectations for the full year. “
1 Treatt compiled consensus of four analyst forecasts for FY22 profit before tax and exceptional items.
Analyst and investor conference call
A conference call for analysts and investors will be held at 9.00 a.m. today, 10 May 2022. For dial-in details, please contact MHP Communications at treatt@mhpc.com. A recording will be made available after the event.
In accordance with DTR 6.3.5 please find below the unedited full text of the half year results.
A copy of the half year results will be submitted to the National Storage Mechanism and will shortly be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism . It will also be available on the Treatt website at www.treatt.com/investor-relations .