Treatt PLC (LON:TET) has told investors that its 2020 profit before tax and exceptional items is anticipated to be in-line with pre-coronavirus (COVID-19) pandemic board expectations.
The natural extracts and ingredients business said it has a cautiously optimistic outlook for the new financial year.
In a statement, the group highlighted 16% revenue growth in its health & wellness category. The company said it is seeing stronger margins due to a focus on added-value products offsetting the impact of COVID-19 and lower orange oil prices.
Treatt described its cash performance as encouraging and said it remains cash positive, despite investment in its new UK facility. It ended the financial year with £1mln of net cash and £20mln of bank facilities.
It also confirmed its intention to propose a final dividend, in line with its unchanged dividend policy.
“We have delivered a strong performance in spite of the difficult backdrop during the year and I thank our colleagues across the group for their skill, flexibility and determination in what has been an extraordinary period,” said Daemmon Reeve, Treatt chief executive in the trading update.
“Our strategy has built resilience into our business model and we are strongly positioned to benefit from key consumer trends including the preference for natural products, a growing interest in health and wellness, and premiumisation. As such, we remain confident in the long-term prospects for the business,” he added.
The company is set to release its results for the year ended September 30, 2020, on November 24.
Treatt provided commentary around its outlook for the new financial year.
The company said it continues to diversify revenues and position the group as an added-value natural extracts and ingredients provider and is cautiously optimistic about its growth trajectory. It added that it is continuing the build-out of its coffee platform continues and anticipates gaining traction in the cold brew coffee market.
The group said it expects further growth across all product categories.
Published at Fri, 09 Oct 2020 07:42:00 +0000-Treatt says 2020 profit will be in-line with pre-pandemic expectations