Company profile - Treatt feature image - 03072019 - JPG

Treatt

LN: TET

£316.1m market cap

532p last close

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, 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 business has demonstrated its resilience with a strong H1 despite the COVID-19 pandemic. Citrus pricing is starting to recover and in H2 will start to cycle weaker comparatives, so we expect citrus revenue growth to return. The UK relocation is likely to be delayed by three to six months as the COVID-19 pandemic slows down the building of the new site.

Y/E Sep
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 112.2 16.6 13.8 20.3 26.2 84.4
2019A 112.7 15.8 14.0 19.2 27.7 15.3
2020E 115.0 16.9 14.7 18.9 28.1 19.9
2021E 119.6 20.6 15.8 20.2 26.3 17.1
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 04/06/2020
Sector
Consumer
Share price graph
Balance sheet
Forecast net cash (£m) 5
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 13.2 13.4 20.9
Relative* 2.5 22.7 36.0
52-week high/low 548.0p/310.0p
*% relative to local index
Key management
Tim Jones Chairman
Daemmon Reeve CEO
Richard Hope CFO

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