Treatt PLC on Tuesday said momentum was ‘good’ backed by a solid order book as it unveiled an improvement in half-year profit.
Shares in Treatt rose 4.2% to 492.61 pence in London on Tuesday afternoon.
In the six months ending March, the Suffolk-based extracts and ingredients manufacturer said pretax profit rose 7.9% to £7.1 million from £6.6 million a year prior, as earnings per share increased 7.0% to 8.72p from 8.15p.
But revenue fell 5.1% to £72.1 million from £76.0 million a year before, Treatt said.
Treatt said revenue accelerated in the second quarter with order patterns normalising and new business wins, in contrast to the first quarter, which was held back by destocking as expected.
The interim dividend was increased by 2.0% to 2.60p per share from 2.55p.
Treatt said it continues to expect to report full year profits in line with its expectations noting good momentum heading into the second half.
It noted a ‘solid’ order book and ‘healthy’ sales pipeline.
Interim Chief Executive Ryan Govender said: ‘These results show a good growth in profit and operating margins. After the expected impact of destocking softened in [the first quarter], momentum in the second quarter was stronger as volumes grew, and we recorded our highest ever monthly revenue in March.’
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