Treatt PLC, a manufacturer and supplier of natural extracts and ingredients for the beverage, flavor, and fragrance industries, reported its full-year results for the year ended September 30, 2025. The company faced a challenging year due to external headwinds, including high citrus prices and weak consumer confidence in the US, which impacted its financial performance.
**Financial Highlights**
* Revenue declined by 11.8% to £132.5 million, primarily due to the impact of high citrus prices and soft US consumer demand.
* Profit before tax and exceptional items decreased by 44.4% to £10.3 million, mainly attributed to the challenging market conditions.
* Net debt increased to £5.9 million, reflecting a £5.0 million share buyback program completed in May 2025.
* The company proposed a final dividend of 3.00p per share, resulting in a total dividend of 5.60p per share, consistent with its stated policy.
**Operational Highlights**
* Treatt made strategic progress in its sugar reduction offering, winning a significant contract in a high-value category.
* The company expanded its European sales teams in Germany and France, increasing its regional reach.
* Treatt maintained strong financial discipline, focusing on cost controls and operational efficiency while investing in product innovation and sales teams.
**Post-Year End Progress and Outlook**
* Treatt signed a distribution agreement with IMCD in South-East Asia, expanding its presence in the region.
* The company launched a commercial and innovation facility in Shanghai, China, in December 2025.
* Treatt entered into a Relationship Agreement with Döhler Finance Management B.V. and appointed Helga Moelschl as a non-Independent Non-executive Director.
* The companys performance in FY26 is expected to be in line with the Boards expectations.
**Chairmans Statement**
The Chairman acknowledged the challenging year, with revenue declining by 11.8% and profit before tax and exceptional items decreasing by 44.4%. However, he highlighted Treatts strengths, including its 140-year heritage, strong brand reputation, and modern facilities with growth capacity. The Chairman expressed optimism about the companys future prospects, citing its ability to grow profits disproportionately as revenues increase.
**Financial Review**
The financial review provided a detailed analysis of Treatts revenue, profit, and balance sheet. The companys revenue decline was attributed to weaker US market conditions, high citrus prices, and soft consumer demand. Treatt implemented cost-saving measures to mitigate the impact of these challenges, but profitability was still affected. The companys net debt position increased due to the share buyback program and weaker trading performance in the second half of the year.
**Interim Group Managing Director Review**
The Interim Group Managing Director outlined Treatts strategy to become the partner of choice in high-growth, high-value beverage categories. The company is investing in its commercial growth engine, innovation, and operational excellence to achieve this goal. Treatt is also focusing on sustainability, responsible sourcing, and net-zero conversations with customers and suppliers.
**Summary**
Treatt PLC faced a challenging year in 2025, with revenue and profit declines due to external headwinds. However, the company made strategic progress, expanded its regional presence, and maintained strong financial discipline. Treatts management remains optimistic about the future, citing the companys strengths, heritage, and growth potential. The company is focused on achieving sustainable top-line and bottom-line growth, while investing in innovation and operational excellence.