Company that creates new flavours and aromas continues its £11m expansion into the US
PUBLISHED: 15:02 27 November 2018 | UPDATED: 15:33 27 November 2018
A Bury St Edmunds ingredients firm is reaping the rewards of growth this year, especially when it comes to its citrus, tea and sugar reduction products.
Treatt has performed well this year, despite some foreign exchange headwinds. The company generated revenues of £112.2m in the 12 months to 30 September 2018, up from £101.3m a year earlier. Pre-tax profits were flat at £11.5m, although adjusted pre-tax profit increased by 8.1 per cent to £12.6m.
Citrus has been the core of Treatt’s portfolio for a large part of the company’s 122-year history, and continues to be so, remaining in high demand for the beverage sector across the globe. Sales of iced tea have also continued to grow, notably in North America. A company spokesperson said: “The authentic, fresh-brewed flavour of our proprietary natural distillates has been a key driver of our success in this segment.”
Reducing sugar levels remains high on the agenda for beverage brands and suppliers across the globe, with increasing pressure from health lobbyists driving manufacturers to dramatically reduce sugar content.
The spokesperson said: “Whilst sugar taxes continue to gain momentum with many implemented in 2018, consumer’s appetite for highly sweetened products continues to diminish. Treatt operates at the cutting edge of sensory innovation. By exploiting the overlap in neurological processing, Treatt can enhance the perception of sweetness with odour components.”
Daemmon Reeve, Treatt’s Group chief executive claimed that it’s been a “remarkable year” for the group. “Last year’s exceptional growth set the bar high, however Treatt’s teams from across the business have consolidated that improvement and secured further success in the year,” he said.
Treatt, which employs nearly 200 people in Suffolk, is currently embarking on a £11m US expansion, and is securing funding for its capital investment programmes in the UK and the US through an equity fund raising and the disposal of its non-core personal care and cosmetics ingredients subsidiary Earthoil Plantations for £11m to US chemical and ingredients distributor Univar for £11.3m.
The US expansion, which will provide much-needed additional manufacturing capacity and enhance the Group’s scientific capabilities in the US, is expected to be fully operational in the first quarter of 2019.
Plans for the relocation of the Group’s UK site, from Northern Way to Suffolk Park in Bury St Edmunds, are also said to be progressing well.