Shares in Treatt have surged by 13% in response to the company’s announcement that it anticipates growth in both pretax profit and revenue during fiscal year 2023, despite facing challenging macro conditions.
At 0741 GMT, the shares are currently up 51.50 pence, reaching 475.00 pence.
This United Kingdom-based supplier of flavor and fragrance ingredients stated on Tuesday that it expects a pretax profit of approximately £17 million ($20.8 million) in the year ending September 30, which is in line with the board’s expectations and represents an increase of around 11% compared to fiscal year 2022.
Despite industry destocking headwinds, mainly due to rising interest rates particularly in the second half of the year, Treatt predicts that revenue will grow by 5%, amounting to roughly £147 million.
The company attributes this rise to successful sales price increases implemented to counterbalance raw material price inflation.
Chief Executive Daemmon Reeve expressed his satisfaction with the company’s performance, stating, “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.”
Furthermore, Treatt successfully reduced its net debt to approximately £10.5 million from £22.4 million over the past year.
The full accounts of Treatt will be published on November 28.