Treatt H1 revenues hit all-time high

(Sharecast News) - Chemical manufacturer Treatt said on Wednesday that interim revenues had hit record levels, pushing pre-tax profits ahead of prior-year comparatives. Treatt said first-half revenues had risen 15% to £75.9m, while pre-tax profits were seen at least 12% higher at £7.1m as "successful pricing actions" were taken to recover raw material inflation.

Inventories were reduced by roughly £7.0m since 2022, notwithstanding record high orange oil prices and continued strategic inventory holdings for large beverage customers, while net debt was reduced to £17.7m despite a normal working capital build in the first half.

Treatt also said it had made "a strong start" to the 2023 trading year as beverage volumes showed resilience despite the current "uncertain macro environment".

Chief executive Daemmon Reeve said: "We've had a strong half with record sales performance, particularly driven by our largest category, citrus, where we have both strengthened our longstanding relationships with some of the biggest beverage companies whilst also winning some new customers.

"Despite the wider macro uncertainties, we remain well positioned given the prevailing consumer trends and the resilience in both alcoholic and non-alcoholic beverages. Our pipeline continues to remain promising in both new and existing customer partnerships and we are seeing good opportunities across a number of categories, giving us confidence for the second half and beyond."

As of 0950 BST, Treatt shares were up 4.25% at 613.0p.

Reporting by Iain Gilbert at Sharecast.com