Treatt (LSE: TET)

Currency in GBP

Last close As at 04/02/2023

GBP6.31

15.00 (2.44%)

Market capitalisation

GBP371m

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 — Back to steady growth

Consumer

Treatt — Rebuilding confidence

Treatt — Holding steady

Consumer

Treatt — Rebasing expectations

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)

10.2

Forecast gearing ratio (%)

7

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 1.0 (1.6) (43.7)
Relative (4.4) (10.6) (44.3)
52 week high/low 1158.0p/507.0p

Financials

Treatt’s FY22 results were in line with the revised guidance issued in August. Management once again explained the steps that have been taken to improve processes around sales pricing and cost recovery, with new FX management systems already implemented. Treatt has made substantial investments in both its assets and people over the last few years to support future growth, but 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 (p) P/E (x) P/CF (x)
2021A 124.3 24.9 22.7 30.1 21.0 28.2
2022A 140.2 19.5 16.5 21.9 28.8 N/A
2023E 148.6 24.0 17.9 23.4 27.0 12.7
2024E 157.5 25.8 20.3 26.2 24.1 18.2

Research

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

Consumer

Treatt — Reverting to a normal split

Consumer

Treatt — Strong start

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