Treatt PLC keeps investors sweet as it ups profit forecasts and hikes dividend

Treatt PLC () will likely keep investors sweet on Tuesday after the ingredients group raised its interim dividend as well as its profit forecasts for the full year.

In its results for the six months to March 31, the company reported a pre-tax profit of £10.4mln, up 71% year-on-year, while revenues jumped 13.5% to £60.8mln.

The firm noted “strong momentum” across its portfolio over the period, adding that its margins had widened by 880 basis points to 35% due to growth in its higher value-added categories and an improved citrus product mix.

As a result of the strong performance, the group also hiked its interim dividend to 2p per share from 1.84p a year ago.

Looking ahead, the company said its “good trading momentum” had continued into the second half with “encouraging order book levels and further growth opportunities across a number of expanding addressable markets”.

As a result, Treatt said its pre-tax profit for its current financial year is expected to be at least £20mln, higher than the current market consensus of £18mln.

“Our performance over the half has been remarkable in what remain challenging times. The dedication of our teams to deliver this exceptional outcome and execute on our strategy speaks volumes about the business we have become and the culture which has been developed. It also demonstrates the value we bring to our customers, providing bespoke, exciting, innovative and differentiating solutions, across a number of growing addressable markets,” chief executive Daemmon Reeve said in a statement.

“We are optimistic about demand returning from the re-opening of hospitality across more geographies in the coming months and the boost from our UK relocation, which gives us much to look forward to and further enhances the future prospects for our business,” the CEO added.