Pre close trading update
22 March 2011
TREATT PLC
TRADING UPDATE FOR YEAR ENDED 30 SEPTEMBER 2011
Pre Half Year Close Period Trading Update
Treatt PLC (the 'Group'), the manufacturer and supplier of conventional, organic and fair trade ingredients for the flavour, fragrance and cosmetic industries today issues the following trading update prior to entering the close period for its half year results for the period ended 31 March 2011, which are scheduled to be announced on 23 May 2011.
It is pleasing to announce that the positive news reported in the Interim Management Statement issued on 15 February 2011 has continued, and in some parts of the Group has accelerated. Consequently, trading for the half year has significantly exceeded expectations and with order books remaining strong, full year results are now likely to be materially higher than previously anticipated.
The Group is benefitting from strong sales growth across all three operating companies with the high orange oil price being a major contributory factor in this growth for both R.C. Treatt and Treatt USA. Over the last few years the market price of orange oil has generally been around $2/kg, and it remained at this level until July last year. Since then there has been a sharp increase in the price to around $10/kg and prices are not anticipated to return fully to their previous levels in the near term. Sales of orange oil products have remained consistently above 15% of Group turnover for many years. Whilst not contributing to the same extent to the increased Group performance, many other raw material prices have also remained very firm.
R.C. Treatt, the Group's UK operating subsidiary, has continued with its strong performance of the last few years. This has now been bolstered by exceptionally strong trading results from Treatt USA, together with a significantly improved, and profitable, first six months from Earthoil, the Group's organic and fair trade business. Treatt USA has enjoyed some significant new business wins this financial year and is continuing to grow its sales with existing customers whilst Earthoil, having had a very good start to the year, has continued to perform well.
Further detailed information will be provided when the Group announces its Half Year Results on 23 May 2011.
Issue date: 22 March 2011
For further information please contact: Treatt PLC 01284 714820
Hugo Bovill Managing Director
Richard Hope Group Finance Director
This information is provided by RNS