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Treatt (LSE: TET)

Currency in GBP

Last close As at 04/12/2023

GBP4.58

▲ 3.00 (0.66%)

Market capitalisation

GBP278m

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 — Return to growth in FY23

Consumer | Update

Treatt — FY23 profits in line despite headwinds

Consumer | Update

Treatt — A strong start to the year

Consumer | Update

Treatt — Strong revenue growth, profit in line
Treatt_resized
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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)

5.4

Forecast gearing ratio (%)

4

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 1.1 (19.3) (28.9)
Relative (1.8) (18.9) (27.8)
52 week high/low 724.0p/423.5p

Financials

Treatt’s FY23 results show a significantly improved y-o-y operating performance, delivering revenue and profit growth alongside record cash generation. Sales in H223 were affected by the destocking of inventory from clients, although management notes early signs of this reversing. Particularly strong growth came from Treatt’s new markets segment (Coffee, China and Treattzest), up 61% y-o-y. Record cash generation resulted in net debt more than halving to £10.4m. Management is focusing on volume growth in FY24 to deliver revenue growth of 5–7%, which is expected to be H2 weighted. Investment in sales and innovation will look to ensure future product growth while cost discipline and efficiencies should enable net operating margin expansion.

Y/E Sep Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2022A 140.2 19.5 16.5 25.4 18.0 N/A
2023A 147.4 24.2 19.0 22.9 20.0 11.8
2024E 156.0 27.9 20.4 24.1 19.0 12.8
2025E 163.8 30.3 22.3 26.5 17.3 11.6

Research

Treatt_resized

Update

Consumer

Treatt — FY23 profits in line despite headwinds

Update

Consumer

Treatt — A strong start to the year
Treatt_resized

Consumer

Update

Treatt — Return to growth in FY23

Treatt_resized

Update

Consumer

Treatt — Strong revenue growth, profit in line
Treatt_resized

Update

Consumer

Treatt — Back to steady growth

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
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Further insights

insight

Consumer

Natural Flavourings

Analyst of the week

Russell Pointon

Russell Pointon

Director, Consumer

rpointon@edisongroup.com 020 3077 5700
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Thematics

thematic

Consumer

Deutsches Eigenkapitalforum (EKF) 2023 consumer and media

thematic

Consumer

ConsumerWatch – October 2023

thematic

Consumer

ConsumerWatch – July 2023

thematic

Consumer

ConsumerWatch – April 2023
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