Treatt (LSE:TET) said trading for the six months to 31 March 2026 has progressed in line with expectations, with a typically quieter first quarter followed by stronger momentum in the second quarter. The company said this pattern supports confidence in meeting full-year forecasts, with performance expected to be weighted more heavily toward the second half of the year.
Headwinds affecting the Heritage citrus category in FY25 are beginning to ease, and the group is applying its technical expertise to create more price-stable solutions, including newly developed powdered citrus extracts. Within the Premium segment, demand in the United States has softened, although this has been partly balanced by increasing volumes linked to health and wellness trends and a solid pipeline of potential opportunities.
Treatt also highlighted strong progress in its New Markets division, driven by double-digit growth in China. The expansion is supported by the company’s new Shanghai Innovation Centre and wider distribution across Asia through its partner IMCD. Management said its strategy continues to focus on higher-margin product segments and geographic growth. Despite macroeconomic, industry and geopolitical pressures, as well as ongoing recruitment for a new CEO and additional non-executive director, the company emphasised disciplined execution, closer collaboration with customers and a robust order book as key drivers of medium-term growth. Interim results are scheduled for release on 12 May 2026, replacing a separate April trading update.
The company’s outlook is somewhat constrained by the decline in profitability during FY2025 and weaker cash flow trends, even though the balance sheet remains strong with relatively low leverage. Technical indicators appear neutral to slightly negative, with the share price trading below longer-term moving averages. Valuation metrics also look somewhat elevated at roughly 25 times earnings, although this is partly offset by a dividend yield of around 3.9%.
More about Treatt plc
Treatt plc is a global, independent producer and supplier of natural extracts and ingredients used in the flavour, fragrance and consumer products industries, with a particular focus on beverages. The company employs around 350 people across Europe, North America and Asia and operates manufacturing facilities in the UK and the United States, enabling it to deliver integrated ingredient solutions to food, beverage and fragrance manufacturers worldwide.
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