Suffolk ingredients firm celebrates 14% sales lift
PUBLISHED: 12:36 08 May 2018 | UPDATED: 12:36 08 May 2018
A Suffolk-based ingredients firm is celebrating a "very encouraging" start to its financial year, with an increase in revenues of just under 14%.
Treatt, which employs nearly 200 people at its Bury St Edmunds base out of a total workforce across the group of 360, saw sales rise to £53.6m in the half year to March 31, 2018. Profits before tax for the first half were up by £1m from the same period last year at £5.8m.
The firm also announced the conditional sale of its personal care and cosmetics ingredients subsidiary Earthoil Plantations for £11m to US chemical and ingredients distributor Univar.
The sale, expected to be completed at the end of May, follows the launch of a five-year strategic plan for Treatt, involving a focus on its key product areas of citrus, sugar reduction and tea and away from personal care ingredients, which the board considered ‘non-core’. The sale proceeds will be used to strengthen its balance sheet and underpin future growth.
The company said it was “an encouraging start”, following the shift, with citrus, tea and sugar reducation continuing to deliver strongly, with significant growth in its authentic, natural, fruit and vegetable extracts used in premium drinks.
Group chief executive Daemmon Reeve said: “Following the exceptional performance of the group in 2017, it is very encouraging to again be reporting both strong revenue and profit growth for the half year. Our strategy continues to deliver with the main business drivers of citrus, tea and sugar reduction performing well in the period.
“Whilst there is still much to do to complete the year, and movements in exchange rates or raw material prices can impact results, the board is currently confident that the group will meet its expectations for the financial year ending September 30, 2018.”
Earthoil revenues to the year ended September 2017 were £7.7m, with pre-tax profits of £1.18m.
Mr Reeve thanked staff for their contribution to the business over the past 10 years and wished them a bright future under its new owners.
“This sale will allow us to focus our efforts and resources on developing our business in the global supply of innovative ingredient solutions to the flavour, fragrance, beverage and consumer product industries,” he said.