Company profile - Treatt feature image - 03072019 - JPG

Treatt

LN: TET

£253.8m market cap

430p last close

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

Investment summary

Treatt has transformed itself from a commodity-based ingredients trading house into a supplier of value-added ingredients and ingredient solutions. The current strategy builds on the strong momentum in the business, which has seen five consecutive years of earnings above company expectations. There will be a full site relocation for the UK business over the next three years or so and expansion of the US site has now been completed. Despite citrus pricing coming under pressure during the year, the FY19 trading update demonstrated the resilience of the business, with growth in the remaining categories offsetting the decline in citrus.

Y/E Sep
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2017A 101.3 15.0 12.8 18.5 23.2 47.9
2018A 112.2 16.6 13.8 20.3 21.2 68.2
2019E 112.7 16.3 14.4 18.7 23.0 7.4
2020E 115.0 17.4 15.3 19.9 21.6 15.5
Industry outlook

Treatt is migrating 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 sugar reduction are core areas of focus, with the latter undergoing a structural growth trend.

Last updated on 12/11/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net cash (£m) 15.9
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 4.4 (4.0) (4.4)
Relative* 3.0 (5.9) (7.8)
52-week high/low 480.0p/388.0p
*% relative to local index
Key management
Tim Jones Chairman
Daemmon Reeve CEO
Richard Hope CFO

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