Company profile - Treatt feature image - 03072019 - JPG

Treatt

LSE: TET

Market Cap£407m

Last Close 668p

Treatt provides innovative ingredient solutions from its manufacturing bases in Europe and North America, principally for the flavours and fragrance industries and multinational consumer goods companies, with particular emphasis on the beverage sector.

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Investment summary

Treatt’s FY22 results were in line with the revised guidance issued in August. Management once again explained the steps that have been taken to improve processes around sales pricing and cost recovery, with new FX management systems already implemented. Coffee was reported as a standalone segment for the first time as revenues broke through £1m. While it is still early, the company expects coffee to provide significant growth in the years ahead. Management remains optimistic despite the dampened macroeconomic environment, as the market for natural and healthy products remains resilient. Our estimates are broadly unchanged.

Y/E Sep
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2021A 124.3 24.9 22.7 30.1 22.2 29.9
2022A 140.2 19.5 16.5 21.9 30.5 N/A
2023E 148.6 24.0 17.9 23.4 28.5 13.4
2024E 157.5 25.8 20.3 26.2 25.5 19.3
Industry outlook

Treatt has migrated its business from that of a pure supplier to the food and beverage industries to being a valued partner in the development of new ingredients. Citrus, tea, fruit and vegetable flavours, and health and wellness (mainly sugar reduction) are core areas of focus, with the latter undergoing a structural growth trend.

Last updated on 30/11/2022
Content on Treatt
Treatt – Rebuilding confidence
Consumer | research Update | 1 December 2022
Research - Treatt feature image - 03072019 - JPG
Treatt – Holding steady
Consumer | research Update | 14 October 2022
Research - Treatt feature image - 03072019 - JPG
Treatt – Rebasing expectations
Consumer | research Update | 7 September 2022
Research - Treatt feature image - 03072019 - JPG
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Share price graph
Balance sheet
Forecast net debt (£m) 10.2
Forecast gearing ratio (%) 7
Price performance
%
1m
3m
12m
Actual 3.1 29.0 (40.1)
Relative* (3.5) 24.8 (41.7)
52-week high/low 1315.0p/507.0p
*% relative to local index
Key management
Tim Jones Chairman
Daemmon Reeve CEO
Ryan Govender CFO