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Ingredients manufacturer Treatt has reported “a strong start” to the year, registering record sales in the first half.
The group, which supplies natural extracts and ingredients for the drinks, flavour and fragrance industries, said in a trading update that beverage volumes had shown “resilience” in the six months to 31 March.
Revenues jumped 15% (8.5% when stripping out currency movements) to £75.9m as it won business with new and existing customers.
Treatt added that it also pushed through cost price increases to recover raw material inflation.
Pre-tax profits rose by about 12% to at least £7.1m in the half.
CEO Daemmon Reeve said: “We’ve had a strong half with record sales performance, particularly driven by our largest category, citrus, where we have both strengthened our longstanding relationships with some of the biggest beverage companies whilst also winning some new customers.
“Despite the wider macro uncertainties, we remain well positioned given the prevailing consumer trends and the resilience in both alcoholic and non-alcoholic beverages.
“Our pipeline continues to remain promising in both new and existing customer partnerships and we are seeing good opportunities across a number of categories, giving us confidence for the second half and beyond.”
Treatt expected to report full-year profits in line with forecasts.
Shares in the group opened 1.8% higher to 598.8p.
Morning update
It continues to be quiet on the markets during the Easter holidays.
The FTSE 100 climbed another 0.3% to 7,805.16pts this morning.
Science in Sport shot up another 9.1% to 9p, while Kerry Group is up 3.6% to €95.74, Cranswick is up 2.1% to 3,096p and Premier Foods is up 1.9% to 121.4p.
Fallers so far include Hotel Chocolat, down 2.4% to 180.6p, SSP Group, down 2.2% to 248.4p, and THG, down 1.5% to 63p.
Yesterday in the City
The FTSE 100 jumped 0.6% to 7,785.72pts following the Easter break.
There wasn’t much in the way of company news to move food ands drink stocks yesterday, but Science in Sport leaped 14.2% higher to 8.5p, while B&M rose 2.6% to 487.9p and Tesco rose 0.9% to 266.6p.
Fallers included Fever-Tree, Finsbury Food and Greencore were among the fallers, down 2.1% to 1,270.8p, 1.4% to 96.7p and 0.5% to 80.1p respectively.
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