Treatt H2 Earnings Call Highlights

Core Viewpoint - Treatt reported a challenging financial year due to sustained high citrus raw material costs and softer consumer demand in parts of North America, impacting overall performance [1][2] Financial Performance - Revenue for the year ended 30 September 2025 was GBP 132.5 million, reflecting an 11.8% decline year over year, primarily driven by volume reductions linked to high citrus prices [3] - Gross margin decreased to 25.9%, down 340 basis points year over year, attributed to citrus-related inflation and a weaker product mix [4] - Profit before tax and exceptional items was GBP 10.3 million, with management actions noted but insufficient to fully counter external pressures [4] Dividend and Exceptional Costs - The company declared a dividend of 5.6 pence per share, consistent with its dividend policy and balanced against earnings and cash flow [4] - Exceptional costs amounted to GBP 3.3 million, higher than the previous year, mainly related to a potential transaction process [5] Category Performance - Heritage category sales declined by 11%, primarily volume-led, with management aiming to recover citrus volumes as prices ease [6] - Premium category sales fell by 13%, driven by slower U.S. consumer demand amid macroeconomic uncertainty, although the company remains confident in its health and wellness offerings [6] - New category sales also declined due to citrus headwinds affecting China, while coffee volumes remain low but are expected to grow with the opening of the Shanghai Commercial and Innovation Center [7]