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Strong Revenue Growth, Profit in Line

After the usual slower start to the year, Treatt (a global team of innovative scientists, delivering exceptional natural extracts and ingredients every day) has had a strong Q2; H123 sales growth was 8.5% at constant currency. Momentum is expected to continue into H2, with current sales growth mainly skewed to price as Treatt continues to recover increased costs, though there was also a small contribution from an improvement in mix. Citrus continued to perform strongly as Treatt pursues its strategy of moving away from the lower-margin products. Edison Group has raised their FY23 sales forecasts to reflect the strong revenue growth but leave their profit forecasts broadly unchanged at this stage, though they see upside risk to forecasts.

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