Treatt PLC on Tuesday said it was undeterred by customer destocking as it expects to deliver annual revenue and profit growth.

Shares in Treatt were 12% higher at 474.96 pence each in London on Tuesday morning.

The Suffolk, England-based manufacturer and supplier of extracts and ingredients for the beverage, flavour and fragrance industries said it expects its revenue for the year ended September 30 to be £147 million, up 5% from £140 million the year prior despite a ‘challenging’ environment and sector destocking.

‘Sales price increases were successfully implemented to offset raw material price inflation reflecting value-add nature of Treatt’s product portfolio,’ the company explained.

Pretax profit is predicted to be line with expectations of £17 million, up 11% from £15.3 million the year prior.

Treatt’s net debt at September 30 was £10.5 million, down 53% from £22.4 million the year before.

Chief Executive Daemmon Reeve said: ‘We delivered positive growth in sales and profit for the year, reflecting the significant price increase programme and ongoing resilience in our beverage end markets. Revenues in the second half of the year were impacted by certain customers reducing inventories in response to interest rate rises. However, we are seeing some early signs of a reversal of this temporary destocking effect, and have also been able to mitigate the effect of this impact with strong cost discipline and other self- help measures.’

The company expects to announce its full-year results on November 28.

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