Treatt (LSE: TET)

Currency in GBP

Last close As at 09/06/2023

GBP6.93

−5.00 (−0.72%)

Market capitalisation

GBP418m

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.

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.

Latest Insights

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Consumer

Treatt — A strong start to the year

Consumer

Treatt — Back to steady growth

Consumer

Treatt — Rebuilding confidence

Treatt_resized

Sector

Consumer

Equity Analyst

Sara Welford

Sara Welford

Director, Consumer

Key Management

  • Daemmon Reeve

    CEO

  • Ryan Govender

    CFO

  • Tim Jones

    Chairman

Balance Sheet

Forecast net debt (£m)

12.6

Forecast gearing ratio (%)

9

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 4.4 25.5 (20.8)
Relative 6.7 30.9 (20.0)
52 week high/low 868.0p/507.0p

Financials

Treatt’s H123 results suggested that the business is back to greater stability and resilience. Momentum is expected to continue into H2, with current sales growth mainly skewed to price as Treatt continues to recover increased costs. Cash management was also strong during H1. Treatt has made substantial investments in both its assets and people over the last few years to support future growth and the investment phase is largely complete now. Management remains optimistic despite the dampened macroeconomic environment, as the market for natural and healthy products remains resilient.

Y/E Sep Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2021A 124.3 24.9 22.7 27.1 25.6 31.0
2022A 140.2 19.5 16.5 25.4 27.3 N/A
2023E 154.2 24.3 18.0 21.6 32.1 14.7
2024E 163.5 25.9 20.4 24.2 28.6 19.1

Research

Consumer

Treatt — A strong start to the year

Treatt_resized

Consumer

Treatt — Back to steady growth

Consumer

Treatt — Rebuilding confidence

Treatt — Holding steady

Consumer

Treatt — Rebasing expectations

Consumer

Treatt — New facility to drive growth

Consumer

Treatt — Upgrading revenue forecasts

Further insights

Consumer

Natural Flavourings

Thematics

Consumer

ConsumerWatch – April 2023

Consumer

ConsumerWatch – January 2023

Consumer

ConsumerWatch – October 2022

Consumer

IPO apocalypse

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