Shares of Treatt Plc (TET.L) were down 28 percent on Thursday's trading on the London Stock Exchange, after the firm reported lower revenues in its first half and projects decline in profit. The company also revised its guidance for the full year ahead.
The company also announced a share buyback programme to repurchase ordinary shares of 2 pence each for a maximum aggregate consideration of 5 million pounds.
In the first half of fiscal 2025, the company reported revenues of 64.2 million pounds, lower than the 72.1 million pounds in the same period last year. Revenues were impacted by lower Heritage and Premium segment sales.
For the six-month period, profit before tax and exceptionals or PBTE is expected to be around 3.6 million pounds, lower than 7.6 milion pounds in the prior-year period. Adjusted EBITDA for the period is projected at around 6.6 million pounds, down from last year's 10.6 million pounds.
The company, which manufactures natural extracts and ingredients, said that it now expects full-year PBTE in the range of 16 million pounds to 18 million pounds, and revenue between 146 million pounds and 153 million pounds. The outlook revision reflects an ongoing softening of consumer confidence in North America, recent geopolitical uncertainty and sustained high citrus prices, resulting in lower customer demand, Treatt noted.
David Shannon, CEO, said, "Whilst we are disappointed by the impact on profitability of predominantly short-term trading challenges, we are encouraged by our robust order book and sales pipeline, and expect to realise the benefit of self-help measures within the second half. We remain confident in the medium-term outlook underpinned by the strategic growth drivers for Treatt."
Treatt's results for the half year are expected to be announced on May 13.
On the LSE, the stock is trading down 28 percent at 231.00 pence.
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