Treatt (TET) Trading Update summary

Financial performance

• Revenue for H1 2025 declined 11% to £64.2m, mainly due to lower Heritage and Premium volumes.

• Adjusted EBITDA expected at £6.6m, down from £10.6m in H1 2024; PBTE expected at £3.6m versus £7.6m.

• Net cash position improved to £0.9m from net debt of £0.7m at FY24, reflecting robust cash generation.

• Full-year revenue now expected between £146m and £153m, with PBTE between £16m and £18m.

• £5m share buyback programme announced, reflecting strong cash performance and confidence in strategy.

Market and operational trends

• High citrus prices led to lower Heritage sales as customers reformulated, reducing value-added citrus volumes.

• US consumer confidence softened, impacting demand for carbonated soft drinks and overall beverage market.

• Premium sales declined 13% in constant currency, but H2 is expected to be stronger due to seasonal weighting.

• Growth seen in Synthetic Aroma, Herbs, Spices, Florals, and New Markets, especially China.

• Shanghai Innovation Centre on track to open in 2025, expected to accelerate China growth.

Strategic initiatives and outlook

• Self-help measures implemented to offset inflation and invest in growth, focusing on efficiency and simplification.

• No significant increase in administrative expenses anticipated for FY25.

• Robust order book and sales pipeline, with new customer wins in Premium and healthy H2 opportunities.

• Expansion in Asia progressing, with new French sample lab and upcoming website launch to enhance customer engagement.

• Medium-term outlook remains positive, underpinned by strategic growth drivers despite short-term challenges.