(Alliance News) - 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 GBP147 million, up 5% from GBP140 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 GBP17 million, up 11% from GBP15.3 million the year prior.

Treatt's net debt at September 30 was GBP10.5 million, down 53% from GBP22.4 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.

By Sabrina Penty, Alliance News reporter

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