Treatt PLC's net profit surged 40% for the six months ended March 31, 2013 compared to the same period a year earlier as the company realigned its resources, established a global group sales strategy, heavily invested in research and development and maintained tight cost controls.
"Consequently whilst it is still relatively early in [the second half], the board remains confident that results for the full year will meet its expectations," Tim Jones, Treatt's chairman, said in his chairman's statement.
The board has consequently declared an increase in the interim dividend of 8% to 5.5 pence per share which will be payable on Oct. 18, 2013 to all shareholders on the register at the close of business on Sept. 13, 2013.
Treatt's net profit for the six months ended March 31 jumped to £1.44 million compared to £1.03 million posted in the same year-ago period. The company realigned its resources across the group to support sales efforts, especially to multinational companies; established of a global group sales structure; heavily invested in R&D and new product development, especially in the value added sectors of its markets; and maintained tight control of costs (click here to read more about Treatt's overall goals in P&F's November 2012 issue).
Revenue for the period fell 6.8% to £33.6 million, although the company said it has transitioned its product mix increasingly towards added-value manufactured ingredients and it has improved gross margins by 3% and cut overheads by 9%.
The group also said its manufacturing bases in the U.K., U.S. and Kenya and volumes in the first six months of the year are up by 33% with plant utilization at high levels. It said sales of tea and citrus ingredients are performing particularly well and the new strategy is enabling the group to win new business with large multinational consumer goods corporations across a wide range of new and existing ingredient products. In addition, Treatt said revenue from its Earthoil-branded range of organic and fair trade cosmetic ingredients continues to grow at a steady pace.