Treatt is a world-leading manufacturer and supplier of flavour, fragrance and cosmetic ingredients. Our diverse product portfolio is the result of over 125 years of technical expertise and experience in the global sourcing of flavour and fragrance raw materials. Through our cosmetics division, Earthoil, we also offer naturally-derived cosmetic ingredients, specialising in organic and fair trade, reflecting our commitment to ethical and sustainable practices.

http://www.treatt.com/

MIDAS SHARE TIPS UPDATE: Sugar tax is a Treatt for our specialist food tip
By Joanne Hart, Financial Mail on Sunday
Published: 21:50, 7 April 2018 | Updated: 11:25, 8 April 2018

Fizzing: Treatt's products are in many drinks
On Friday the sugar tax came into force putting up the price of most fizzy drinks in the UK.
The idea behind the tax is to reduce obesity by encouraging consumers to buy fewer sugary drinks and encouraging soft drinks manufacturers to use less sugar.
Whether the tax will have the desired effect could take years to determine, but it plays into the hands of Daemmon Reeve, chief executive of specialist ingredients group Treatt.



Reeve has worked at Treatt since 1991 so he knows the business inside out. Midas first recommended the stock in June 2014, when the price was 158.5p.
Today, the shares are 412p and they are likely to increase further this year and beyond.
Treatt's history dates back to the Victorian era, when the firm was founded by essential oils trader Richard Treatt.
The business has evolved over the years, but retained a trading slant until relatively recently.
Today, however, the group does not just buy and sell ingredients, such as spices, oils and flavourings.
Instead, it works with multinational groups to help them create innovative tastes and beverages using high quality, sustainably sourced, raw ingredient
The company is particularly focused on citrus drinks, flavoured iced teas and natural ingredients that can be used as sugar substitutes.
Its products can be found in beverages in almost every supermarket and bar in this country, it has a strong presence in the US and it is beginning to expand in China and India too.
Reeve and his team are highly optimistic about the outlook, so much so that they are building a brand new, expanded operation in Bury St Edmunds, Suffolk, and a larger facility in the US.
The firm delivered a confident trading update last week, saying figures for the year to September would be in line with market expectations.
The weak dollar put a slight dent in first half profits but that should even out over the full year and the group will benefit from President Trump's recently introduced tax cuts.
Analysts are upbeat, predicting profits of £13.2 million for the year to September 2018, rising to £13.8 million the following year. A dividend of 5.1p is pencilled in for the current year, rising to 5.4p next year.
Midas verdict: Consumers are being warned against the evils of sugary drinks but they still want tasty beverages, both soft and alcoholic.
Treatt helps firms satisfy those needs. It has delivered the goods over the past four years and should continue to do well.
Shareholders may choose to sell up to 25 per cent of their stock to bank some profit but should retain the bulk of their holdings. New investors may also find long-term value in these shares.

Excellent set of interims today and disposal of non core Earthoil Plantations an added bonus. Sugar reduction, tea and citrus product lines all appear on a roll. US factory expansion should complete later this year and if they can build new UK facility on time and to budget by the end of next year the future will look even brighter. Could still have along way to go, but always dyor.

Final results


OPERATIONAL HIGHLIGHTS:
· 2022 strategic growth plan on track
· Won significant new business with global FMCG companies through our continued focus on the key growth drivers of citrus, tea and sugar reduction solutions
· Material advances made on our capital investment programme:
o US expansion project on time and on budget and expected to be completed in 2018 and fully operational in Spring 2019
o UK relocation at advanced stages of design optimisation and progressing well
· Successful disposal of non-core subsidiary, Earthoil Plantations, for enterprise value of £11.3m

Commenting on the results, CEO Daemmon Reeve said:
"I am delighted to report another year of strong growth for Treatt. Last year's performance set the bar high, so I am delighted to report that Treatt's teams from across the business have built upon that performance and secured further success in the year.
"The Group has had a steady start to the new financial year with a number of attractive opportunities in our pipeline of projects with both existing and new customers. We are well placed to capitalise on these opportunities with our capacity expansion in the US expected to complete in the coming weeks. Whilst still early in the financial year, the Group continues to perform in line with the Board's expectations for the full year."