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Treatt Plc has reported first half 2012 profit (pre-tax) of 1.56 million pounds, compared to 3.72 million pounds in the comparable period 2011.
"During the half year, the prices of many products fell," the company noted of the strong 2011 comparables. "For instance, orange oil, the Group’s largest raw material, peaked in early 2011 at over $10/kg, and remained at historically very high levels for most of 2011 although volumes were considerably reduced. During the first six months of this financial year, the price of orange oil began to fall sharply and is now below $4/kg."
Revenue for the period was 36.03 million pounds, compared to 35.8 million pounds in 2011. Treatt believes full-year results will benefit from stabilizing raw material costs.
Looking ahead, the company says, "The improvement in the Group’s performance has continued into Q3 with order book levels increasing across the Group. The board, therefore, now believes that results in the second half of the year will result in its expectations for the full financial year ended Sept. 30, 2012, being exceeded, particularly now that raw material ingredient market prices have begun to stabilize."