Company profile - Treatt feature image - 03072019 - JPG

Treatt

LN: TET

£524.8m market cap

880p 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 once again delivered an exceptional performance in the first four months of FY21, with strong momentum across multiple categories contributing to growth. Operating margins have benefited from the improved product mix as Treatt continues to move up the value chain and partners with its customers to develop new products. Its technical expertise is being utilised across a growing range of applications, which has led to revenue growth and margin expansion. The UK relocation project continues, with a move to the new site expected in mid 2021, and the outlook for FY21 is cautiously optimistic.

Y/E Sep
Revenue (£m)
EBITDA (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2019A 112.7 15.8 14.0 19.0 46.3 25.3
2020A 109.0 17.9 15.8 21.3 41.3 33.6
2021E 123.2 23.3 19.4 26.4 33.3 32.2
2022E 130.6 28.0 21.5 29.3 30.0 21.6
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 sugar reduction are core areas of focus, with the latter undergoing a structural growth trend.

Last updated on 26/02/2021
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Sector
Consumer
Share price graph
Balance sheet
Forecast net debt (£m) 3.8
Forecast gearing ratio (%) 4
Price performance
%
1m
3m
12m
Actual (3.1) 31.0 74.6
Relative* (1.5) 26.9 85.2
52-week high/low 1025.0p/310.0p
*% relative to local index
Key management
Tim Jones Chairman
Daemmon Reeve CEO
Richard Hope CFO

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