Treatt (TET) investor relations material

Executive summary

• Revenue for FY25 was £132.5 million, down 12% year-over-year, mainly due to high citrus raw material costs and softer consumer demand, especially in the U.S.

• Gross margin declined to 25.9%, a drop of 3.4 percentage points year-over-year, reflecting raw material inflation and product mix.

• Profit before tax and exceptionals was £10.3 million, with adjusted profit before tax down 44.4% and adjusted EPS at 13.40p.

• Dividend of 5.60p per share declared, with £10.1 million returned to shareholders via dividend and share buyback.

• Strategic progress included opening a Shanghai Commercial and Innovation Center, expanding sales in Europe and Asia, and a failed acquisition offer from Natara.

Financial highlights

• Revenue declined by 11.8% to £132.5 million, primarily volume-driven.

• Gross margin dropped by 340 basis points to 25.9%, mainly due to citrus pressures and premium mix.

• Adjusted operating profit was £10.7 million, down 44.8%, and adjusted EBITDA was £16.2 million, down 33.7%.

• Cost base reduced by over £1 million through self-help measures, while still investing in sales and innovation.

• Total dividend per share was 5.60p, down from 8.41p.

Outlook and guidance

• Targeting a return to revenue growth and net cash generation in FY26, driven by citrus volume recovery, China growth, and pipeline conversion.

• Gross margin expected to be stable as citrus market conditions improve.

• Focus on growing volume, cash contribution, normalized CapEx, and a return to net cash.

• Industry headwinds expected to persist into FY26, but a strong pipeline and stable leadership support recovery.

• Q1 performance in line with expectations; medium to long-term outlook remains confident.