Trading in the period has been stronger than the board’s original expectations. As previously reported, the first six months of the current financial year finished strongly. This strength continued into the second half of the financial year with sales and profits in Q3 ahead of last year, but the board has remained cautious on the result for the full year, as Q4 last year was very weak.
Business in the first part of Q4 has remained very healthy, with the level of the group’s order book for prompt delivery continuing to run at a very high level. As a result, the board now believes that full-year profits for the current financial year to 30 September 2010 will exceed its original expectations.
Looking forward, prices of many natural and synthetic flavour and fragrance ingredients continue at record levels due to strong demand and supply shortages. There’s no certainty how long this position will continue and there’s always the risk that demand and/or prices will fall which could have an adverse impact on the group’s profitability.
Treatt’s full-year results will be announced on 6 December 2010.
Source: Treatt
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