Coronavirus Update

Treatt PLC- Half year Results 2021

This content has been sourced from: https://www.investegate.co.uk/treatt-plc--tet-/rns...

TREATT PLC

HALF YEAR RESULTS

SIX MONTHS ENDED 31 MARCH 2021

 

 

11 May 2021

 

Strong growth over H1 with multiple opportunities across expanding addressable markets 

 

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 2021.

 

FINANCIAL HIGHLIGHTS1:

 

Half year ended

31 March 2021

Half year ended

31 March 2020

Change

Revenue

£60.8m

£53.6m

+13.5%

Gross profit margin

35.0%

26.2%

+880bps

Operating profit

£10.6m

£6.1m

+73.9%

Profit before tax and exceptional items

£10.4m

£6.1m

+71.4%

Adjusted basic earnings per share

12.93p

8.08p

+60.0%

Dividend per share

2.00p

1.84p

+8.7%

 

OPERATIONAL HIGHLIGHTS:

· Strong momentum, with encouraging revenue growth across the Group's portfolio

· Increase in margins from growth in higher value-added categories and improved citrus product mix:

Ø Revenue growth of 57.1% from the 'healthier living' categories of tea, health & wellness and fruit & vegetables.

Ø Core citrus product category reporting materially improved margins from recovery in raw material prices and increasing demand for more value-add, solution-driven ingredients.

· Transition to the new UK headquarters, with significant capacity uplift in the next financial year.

· Ongoing investment in the Group's capacity and innovation capability to fuel long-term growth.

· Further strengthening management team with addition of Chief Innovation Officer and Chief People Officer.

 

CURRENT TRADING AND OUTLOOK:

· Good trading momentum continues, with encouraging order book levels and further growth opportunities across a number of expanding addressable markets.

· Profit before tax and exceptional items for the current financial year is expected to be at least £20.0m, exceeding the current market consensus 2 of £18.0m.

 

Commenting on the results, Group CEO, Daemmon Reeve, said:

 

"Our performance over the half has been remarkable in what remain challenging times. The dedication of our teams to deliver this exceptional outcome and execute on our strategy speaks volumes about the business we have become and the culture which has been developed. It also demonstrates the value we bring to our customers, providing bespoke, exciting, innovative and differentiating solutions, across a number of growing addressable markets.

 

We are optimistic about demand returning from the re-opening of hospitality across more geographies in the coming months and the boost from our UK relocation, which gives us much to look forward to and further enhances the future prospects for our business."

 

1 All measures are based on continuing operations.

Treatt compiled consensus of analyst forecasts for FY21 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, 11 May 2021. For dial-in details, please contact MHP Communications at treatt@mhpc.com . A recording will be made available after the event.