Treatt (LSE: TET)

Currency in GBP

Last close As at 22/09/2023

GBP5.07

−11.00 (−2.12%)

Market capitalisation

GBP300m

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 | Update

Treatt — A strong start to the year

Consumer | Update

Treatt — Strong revenue growth, profit in line

Consumer | Update

Treatt — Back to steady growth

Consumer | Update

Treatt — Rebuilding confidence

Treatt_resized

Sector

Consumer

Equity Analyst

Milo Bussell

Associate Analyst, Consumer and Media

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 (10.0) (26.1) (18.8)
Relative (14.7) (27.1) (22.6)
52 week high/low 724.0p/493.0p

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. 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 18.7 22.7
2022A 140.2 19.5 16.5 25.4 20.0 N/A
2023E 154.2 24.3 18.0 21.6 23.5 10.7
2024E 163.5 25.9 20.4 24.2 21.0 14.0

Research

Update

Consumer

Treatt — Rebuilding confidence

Update

Treatt — Holding steady

Update

Consumer

Treatt — Rebasing expectations

Outlook

Consumer

Treatt — New facility to drive growth

Update

Consumer

Treatt — Upgrading revenue forecasts

Update

Consumer

Treatt — Reverting to a normal split

Update

Consumer

Treatt — Strong start

Update

Consumer

Treatt — Looking ahead to a new level

Further insights

insight

Consumer

Natural Flavourings

Thematics

thematic

Consumer

ConsumerWatch – July 2023

thematic

Consumer

ConsumerWatch – April 2023

thematic

Consumer

ConsumerWatch – January 2023

thematic

Consumer

ConsumerWatch – October 2022

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