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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.
Consumer
Consumer
Consumer
Director, Consumer
Daemmon Reeve
CEO
Ryan Govender
CFO
Tim Jones
Chairman
Forecast net debt (£m)
12.6
Forecast gearing ratio (%)
9
| % | 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 |
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 |
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