Canned cocktails put fizz in Treatt results
Treatt Plc
476.00p
11:49 26/04/24
Treatt's annual profit surged and its final dividend jumped as the ingredients supplier benefited from increased demand for healthy drinks and canned cocktails.
Pretax profit rose 42.8% to £19.6m in the year to 30 September as revenue increased 14% to £124.3m. The final dividend rose 32.2% to 5.5p a share taking the annual payout to 7.5p - up 25% from a year earlier.
Treatt said profit was well ahead of its initial expectations and that it had no material impact from global supply chain problems. Revenue will continue to grow strongly, it predicted.
Treatt said a big driver of growth during the year was the popularity of canned cocktails and in particular "hard seltzers". Energy drinks and flavoured waters were also popular.
The company has performed well during the Covid-19 crisis as demand has increased for herbal teas and other wellbeing-related products. Business was also boosted by demand for cleaning products containing Treatt's fragrances.
Chief Executive Daemmon Reeve said: "We have managed to deliver really strong profit growth across multiple categories, particularly through aligning with consumer beverage trends and the wide demand for healthier, natural products."
Treatt shares, up 38% in 2021, rose 1.1% to £11.324 09:00 GMT.