Treatt Sees Profits Fall as Market Pressures Mount, but Targets Recovery Through Expansion and Döhler Relationship

Treatt plc (LSE:TET) reported a challenging full-year performance for the year ended 30 September 2025, as softer market conditions weighed heavily on results. Revenue declined 11.8% to £132.5 million, while profit before tax and exceptional items fell 44.4% to £10.3 million, reflecting weaker US consumer demand, tariff-related uncertainty and persistently high citrus input costs.

Margin pressure was evident across the business, with adjusted EBITDA down by around a third. Earnings per share and dividends were reduced, and net debt increased to £5.9 million, partly due to a £5 million share buyback completed during the year. Despite these headwinds, management emphasised continued discipline around cash generation and reiterated its commitment to maintaining a progressive dividend policy over the longer term.

Strategically, the group highlighted a number of operational positives. These included a significant commercial win for its sugar reduction platform, investment in expanded sales teams in Germany and France, and the opening of a new commercial and innovation centre in Shanghai. Treatt also extended its reach in Asia through a distribution agreement in South East Asia with IMCD. After the year end, the company entered into a relationship agreement with major shareholder Döhler, following the lapse of a competing private equity-backed takeover approach. The board believes this relationship, alongside the group’s underutilised but well-invested manufacturing capacity, could support a return to profit growth, while noting the need to manage potential conflicts given Döhler’s position as both a key customer and significant shareholder.

More about Treatt plc

Treatt plc is a global, independent manufacturer and supplier of natural extracts and ingredients to the flavour, fragrance and multinational consumer goods industries, with a strong focus on beverages. Known for its technical expertise and deep understanding of ingredient sourcing and market dynamics, the group operates manufacturing facilities in the UK and the US and employs around 350 people across Europe, North America and Asia. Treatt leverages its international footprint to deliver integrated, value-added solutions to customers worldwide.