StockMarketWire.com - Flavour and fragrance ingredient supplier Treatt said its first-half revenue grew by 7% despite price weakness in its key citrus category.

On a constant currency basis, revenue for the six months through March rose 5%.

Treatt said it expected exchange rate movements to have a negative impact on its first-half results of around £0.6m.

The company also announced that a $14m expansion of its US facility was completed in March and that it would become fully operational in June.

In the UK, construction of a £35m relocation project was expected to commence this summer, with occupancy to begin in summer 2020.

'The growth in the period was particularly pleasing against a market backdrop of price weakness in some key raw materials for our largest product category, citrus, which we expect to continue into the second half of the current financial year,' Treatt said.

'Whilst citrus continues to dominate our category mix, the fruit and vegetables, tea and sugar reduction categories are also driving revenues, representing 69% of the year-on-year growth for the period.'

Looking ahead to the full year, Treatt said it was encouraged by its order book, which was comfortably up on-year.

'This reflects the success of our continued strategic focus on key product categories and geographical markets and the board, therefore, continues to believe that profit before tax and exceptional items will be in line with its expectations for the financial year ending 30 September 2019.'



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