Treatt has entered a relationship agreement with major shareholder Döhler as it reveals profits and revenues plunged following a challenging year.
The listed drinks ingredients supplier was involved in a failed takeover process in 2025 as shareholders rejected a £170m bid from flavour manufacturer Natara Global. It led to CEO David Shannon departing the business.
Investors felt Treatt was being sold at a discount price following a crash in the share price on the back of two profits warnings earlier in the year.
The ingredients specialist struggled with high citrus prices, weak demand in the US and uncertainty caused by tariffs.
Revenues sank 12% to £132.5m in the year to 30 September as a result, with pre-tax profits down 61% to £7m.
However, the numbers did hit the revised expectations set out in the July profits warning.
Chairman Vijay Thakrar recognised the results would be “disappointing” for shareholders.
Interim managing director Manprit Randhawa said Treatt had made good strategic progress despite the “considerable” headwinds faced during the year.
“Treatt is looking to the future with optimism after a period of turbulence,” he added. “We have considerable strengths to build on, including our exceptionally talented people, state-of-the-art facilities with significant capacity for growth, and expertise built over 140 years.”
Separately, Treatt announced it had also entered into a ‘relationship agreement’ with Döhler, the German ingredients group that led the opposition to the Natara takeover.
Döhler built a 28% stake in Treatt after the Natara bid was made public last year.
The relationship agreement will ensure transactions and arrangements between Treatt and Döhler are conducted at arm’s length. It also gives Döhler the right to nominate a candidate to take a board seat, with Helga Moelschl set to join Treatt as a non-executive director on 1 February.
The agreement will terminate if Döhler’s shareholding falls below 25%.
“The board is committed to acting in the interests of all its shareholders,” Thakrar added. “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.”
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