StockMarketWire.com - Ingredient supplier Treatt booked a 28% fall in first-half profit after it booked a loss on the sale of vegetable seed oil business Earthoil Plantations.

Net profit for the six months through March fell to $3.7m, down from $5.1m on-year.

Earthoil, which specialises in products for the personal care and cosmetic industries, was sold last year to Univar for £11m.

Treatt's revenue rose 5.7% to £56.6m, while adjusted pre-tax profit rose 3.8% to £6.3m.

Treatt declared an interim dividend of 1.70p per share, up 6.3% on-year.

The company said its fruit and vegetables, tea and sugar reduction categories had performed strongly.

'Once again it is pleasing to report encouraging strategic progress,' chief executive Daemmon Reeve said.

'All categories have performed well despite cyclical weakness in some citrus raw material markets with particularly encouraging growth in our higher margin tea, sugar reduction and fruit and vegetable categories supporting the strong trend towards better for you and clean label, more natural beverages.'

'The past six months have seen much work across the business strengthening our teams, building and planning infrastructure to drive future growth, establishing Treatt in new growth markets and expanding our offer in established markets.'

'These actions were achieved whilst improving profitability and margins and give the board confidence that the business is well placed to deliver on its strategic objectives over the coming years.'




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