Today, Treatt announced our results for the year ending 30th September 2024.
Summary of the year
- Overall revenue growth of +3.8%
- Strong heritage growth, including Citrus
- Robust growth in Tea in North America
- Shanghai innovation centre approved
- Sustainability journey accelerated thanks to ESG Board Advisory Panel
This year, we have seen strong heritage growth, with a focus on utilising capacity, growing volumes with strategic customers and price increases in Citrus due to sustained higher commodity prices. Treatt remains a key strategic supplier to flavour houses as demand normalised in Synthetic Aromas.
Overall revenue growth is marginally lower than anticipated (by 1.4%) as extreme weather in the US delayed a large stock shipment, shifting revenue into 2025. The profit and exceptional items of £19.1m is up by 10.1%, slightly ahead of Board expectations. The proposed total dividend for the year is 8.41p per share, an increase of 5.0%.
Our significantly reduced year-end net debt (from £10.4m to £0.7m) reflects our strong cash discipline across the Group and investment benefits in the new UK facility.
Commenting on the results, new CEO, David Shannon, said:
“I’m pleased to be delivering a strong set of results for the year, my first since joining Treatt in June. We made great progress, with growth in both sales and profit, boosted by a really strong revenue performance in the second half, up 13%. And I am particularly pleased that we have brought net debt right down thanks to our strong cash generation, with further momentum to be cash positive in the new financial year. This performance not only reflects good conversion of the order book and the strong cost discipline that’s now embedded across the Group, but also normalising demand trends and the benefits of investment.
We have invested for growth, expanding our commercial teams, bringing them closer to customers, and are close to opening our new Shanghai innovation centre, in line with our strategic focus in the region.
Since I started, my reasons for joining Treatt have been reinforced. I have seen firsthand that it has a great reputation in the market. This is a strong business with a leading market position, perhaps no surprise, as it is full of talented people. We punch above our weight, with innovative product offerings, cutting-edge technologies and deep, longstanding relationships with our customers.
I’m excited about the future and I see clear opportunities to build on what has been achieved so far. We will look to enhance our agility and explore new areas within existing, adjacent and new markets. We are well positioned for the future and I look forward to working with the talented team to achieve Treatt’s longer term ambitions.”
2025 Outlook
Continued growth in our Premium range and TreattZest ingredient portfolio expansion
Sizeable opportunities in China with new innovation facility
Strategic move into Asia and Latin America geographic markets
Focus on driving revenue growth and recruitment of experienced industry experts
Continued disciplined investments to drive further cost efficiencies
Click HERE to read the full statement.