Treatt (TET) has reported an 8.1% rise in adjusted pre-tax profit for the year to 30 September, to £12.6m. That's after stripping out more than £1.1m costs being lined up to move to a new purpose built facility in its Suffolk back yard that it hopes will provide the scope and scale to drive the next leg of its development.
Altogether the company is looking at investing £35m on the move, once the new site has been fitted out. There is also ambitions plans to scale-up in the US.
Treatt develops ingredients for flavourings and fragrances used in everyday products, such as bottled water, juices, beers and fruity ciders.
Consumers are increasingly buying healthier drinks and that appears to mean higher demand for innovative flavourings, both here in the UK, in other mature markets, but also increasingly from a growing base in emerging markets.
OPPORTUNITIES IN CHINA AND INDIA
While Brexit and US/China trade battles are grabbing headlines, Treatt says demand for its products is more weather-driven.
Demand for citrus flavours, iced tea, particularly in North America, and lower sugar beverages have boosted sales by 10.8% to £112.2m. But the company also talks-up ‘huge growth potential’ in China and India.
Investec analyst Nicola Mallard is confident Treatt’s strategy is delivering on another year of good sales and profit progress.
Shares in the company have fizzed 2.9% higher to 455p.