Treatt (TET) Trading Update summary

Financial performance and outlook

• Revenue for FY 2025 is now expected between £130m and £135m, with profit before tax and exceptionals (PBTE) between £9m and £11m, both below previous guidance.

• Second half sales are forecast at £66m, down from prior guidance of £82m, due to slower conversion of pipeline opportunities and lower repeat customer volumes.

• A weaker US dollar has created a £0.5m profit headwind from translation of USD profits.

• Lower demand in Heritage products persists due to high citrus oil prices, though recent price reductions may ease this impact.

• US consumer confidence and geopolitical uncertainty continue to soften North American beverage market demand.

Operational and strategic initiatives

• Inflationary cost pressures are being mitigated through simplification and efficiency measures, with no significant increase in administrative expenses expected for FY 2025.

• A £5m share buyback was completed in May 2025.

• The balance sheet remains strong, with a low net debt position expected at year-end, compared to previous guidance of £1-3m net cash.

• The sales pipeline has strengthened, with a focus on revenue opportunities and better margins in FY 2026 and beyond.

• Senior teams have been strengthened and a Shanghai innovation centre is planned to open later in the year to support growth and market expansion.