Interim Management Statement
TREATT PLC
INTERIM MANAGEMENT STATEMENT
YEAR ENDED 30 SEPTEMBER 2011
Interim Management Statement for period ending 14 February 2011
Treatt PLC (the 'Group'), the manufacturer and supplier of conventional, organic and fair trade ingredients for the flavour, fragrance and cosmetic industries today publishes its Interim Management Statement as required by the Listing Authority Disclosure and Transparency rules. This statement relates to the period from 1 October 2010 to 14 February 2011.
Following a strong year ended 30 September 2010, momentum has been maintained into the new financial year with sales across the Group being significantly higher than for the same period last year. Whilst a major factor in the sales growth has been the ever increasing rise in prices, the Group continues, particularly in the US, to win new business.
As compared to the same period last year, which encompassed a weak first quarter, Treatt USA has had an exceptional start to the financial year, benefiting from the price of orange oil reaching new highs. R.C. Treatt has continued its steady improvement with sales of aroma chemical products and activity in the Far East continuing to do particularly well. Earthoil, the Group's organic and fair trade business, has had a good start to the financial year as a result of the inclusion in the first quarter of this financial year of sales to its largest customer which were delayed from last financial year due to exceptional weather in India. In addition, the general level of new orders received by Earthoil has continued to show steady and encouraging progress.
However, as prices have continued to rise, there has been an increase in working capital and margins have narrowed as not all price increases can be passed on to customers. The Group is seeking to manage the potential downside risk if, and when, prices begin to fall.
Although it is too early in the current financial year to be certain of the eventual outcome, the Board remain confident that, subject to no material adverse fluctuations in foreign exchange rates, the Group will meet its expectations for the current year.
Treatt Plc's Annual General Meeting takes place on Friday 25 February 2011.
Issue date: 15 February 2011
For further information please contact:
Treatt PLC 01284 714820
Hugo Bovill Managing Director
Richard Hope Group Finance Director
This information is provided by RNS