StockMarketWire.com - Ingredients supplier Treatt reported a 6% fall in first-half profit, citing expected weakness at its citrus division.

The company, however, upped its dividend while claiming its business had not been adversely affected by the Covid-19 crisis.

Pre-tax profit for the six months through March dropped to £5.6m, down from £5.9m on-year.

Treatt declared a full-year dividend of 1.84p per share, up 8.2% on-year.

Revenue fell 5.3% to £53.6m, owing to the citrus category being hurt by lower raw material prices.

Treatt said it had delayed a UK site relocation until 2021 due to the Covid-19 lockdown.

'The anticipated weakness of some citrus raw material markets impacted the first half numbers as expected, but the second half is likely to witness an improvement in this category,' chief executive Daemmon Reeve said.

'Once again, the growth in higher margin tea, health & wellness and fruit & vegetables categories continue to make healthy progress in line with the growth in consumer demand for 'better-for-you' premium beverages.'

Reeve said it was difficult to determine the likely impact of Covid-19 on demand, adding there 'may be a slowdown in some of our customers' new product development activities in the short term, reflecting the dramatic changes in consumption habits'.

'However, the group has traded well since the half-year end and is encouraged by the level of its order book and the current demand for its products from beverage ingredients through to solutions for hand soaps and cleaning products.'

'Therefore, whilst there remains much to do, the board is pleased to report that, at this time, trading remains in line with its expectations for the financial year ending 30 September 2020.'


At 9:39am: [LON:TET] Treatt PLC share price was +7p at 497p



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