Treatt FY profit slumps, enters relationship agreement with shareholder Dohler

(Sharecast News) - Treatt posted a drop in full-year profit and revenue on Tuesday as high citrus prices and soft US consumer confidence continued to take their toll on the supplier of natural extracts and ingredients. In the year to the end of September 2025, pre-tax profit fell 60.9% to £7m on revenue of £132.5m, down 11.8% on the previous year.

Treatt noted that both revenue and profit were in line with the revised expectations set out last July.

Interim group managing director Manprit Randhawa said: "It has been a challenging year for Treatt, exacerbated by weak market conditions and soft consumer demand in the US, tariff uncertainty and sustained high citrus prices.

"Treatt has made good strategic progress and delivered revenue and profit in line with our revised guidance set out in the group's trading update in July despite the considerable headwinds faced during the year. This was achieved through a sharp focus on costs, particularly in the second half of the year to mitigate impact on demand. We achieved this while continuing to invest in innovation and sales teams across the business.

"We are really pleased with a number of overseas initiatives during the year: the launch of our new Shanghai innovation centre in China, and expanding our sales teams in France and Germany."

The company also announced on Tuesday that it has entered into a relationship agreement with major shareholder Döhler.

German peer Döhler, which has a stake of about 28%, has undertaken, among other things, to ensure that all transactions and arrangements between it and Treatt will be conducted at arm's length and on normal commercial terms.

Döhler has also agreed that it will not take any action or propose any shareholder resolution that would prevent Treatt from complying with its obligations under the UK listing rules and other applicable regulatory requirements.

Treatt chair Vijay Thakrar said: "The board is committed to acting in the interests of all its shareholders. I am pleased to announce the relationship agreement with Döhler, which is both a significant shareholder and a highly respected company in the ingredients, life science and nutrition industry.

"After careful consideration, the board concluded that it would be in the company's best interest to enter into a suitable agreement with Döhler to regulate our relationship for the benefit of all shareholders and stakeholders of the company."

At 0920 GMT, the shares were up 2.4% at 218p.