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Highlights

  • Revenue Decline: H1 2025 revenue down 11% to £64.2m due to reduced demand in Heritage and Premium categories.

  • Profit and EBITDA Impacted: Adjusted EBITDA dropped to £6.5m, with PBTE falling to £3.6m from £7.6m year-on-year.

  • Cash Position: Net cash of £0.9m and continuation of £5m share buyback demonstrate financial resilience.

Treatt PLC (LSE:TET), a leading manufacturer and supplier of natural extracts and ingredients for the global beverage, flavour, and fragrance industries, has announced its half-year results for the six months ended 31 March 2025. The Group reported a decline in revenue but affirmed its full-year guidance, supported by strategic progress and significant cash generation.

Treatt posted revenue of £64.2 million, down from £72.1 million in the same period last year. The decline primarily reflects reduced volumes in its Heritage and Premium categories, driven by macroeconomic and market-specific headwinds, including sustained high citrus prices and shifting customer purchasing patterns.

The Group’s adjusted EBITDA fell to £6.5 million, compared to £10.6 million in H1 2024. Similarly, profit before tax and exceptionals (PBTE) declined to £3.6 million, from £7.6 million a year earlier. Despite this, Treatt moved from a net debt position at the end of FY2024 to a net cash position of £0.9 million.

Reflecting its financial confidence, the company is continuing its £5 million share buyback programme, announced in April, and declared an interim dividend of 2.60p per share, consistent with the prior year.

Market and Trading Conditions

The Group attributed the revenue shortfall to prolonged high citrus prices, which have led customers to reformulate products and reduce value-added citrus purchases. This trend is expected to persist through the remainder of FY2025. Additionally, softened consumer confidence in the US, compounded by geopolitical uncertainty, has weighed on the North American beverage market—one of Treatt’s key regions.

Strategic Response and Outlook

Despite these challenges, Treatt remains optimistic about delivering its revised full-year forecast of £146 million to £153 million in revenue, and PBTE of £16 million to £18 million by 30 September 2025. According to the Group, sales for the second half are already 50% covered, with 35% expected from repeat customer business and the remaining 15% from pipeline opportunities, consistent with previous years.

Treatt has undertaken several cost-control and efficiency initiatives in the first half, focusing on simplification to offset inflationary pressures and support investment in growth areas. These actions are expected to help maintain administrative expenses at FY2024 levels.