By Christian Moess Laursen
Shares in Treatt rose 13% after the company said it expects pretax profit and revenue to rise in fiscal 2023 despite challenging macro conditions.
At 0741 GMT, shares are up 51.50 pence at 475.00 pence.
The U.K. supplier of flavor and fragrance ingredients said Tuesday that it expects to report a pretax profit around 17 million pounds ($20.8 million) in the year ended Sep. 30, in line with the board’s expectations and up around 11% on fiscal 2022.
Revenue is set to grow 5% to around GBP147 million despite industry destocking headwinds, particularly in the second half, due to rising interest rates.
The rise will be driven by successful sales price increases to offset raw-material price inflation, Treatt said.
“We delivered positive growth in sales and profit for the year, reflecting the significant price increase program and ongoing resilience in our beverage end markets,” Chief Executive Daemmon Reeve said.
Net debt was reduced to around GBP10.5 million from GBP22.4 million a year prior.
Treatt plans to publish its full accounts on Nov. 28.
Write to Christian Moess Laursen at [email protected]
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