Ingredients specialist Treatt has warned that the high cost of raw materials this year will ‘impact margins’ but its revenue and profits are still on target.
The Bury St Edmunds-based manufacturer and supplier of innovative ingredient solutions for the flavour, fragrance and consumer goods industries last week published a trading update for the year ended September 30.
It says the Treatt Group Board is pleased to confirm the Group expects to report revenue and profit before tax in line with its expectations.
It adds: “The underlying performance of the business for the year has been one of steady progress, building on the strategic foundations which were put in place in early 2013 although, as previously indicated, the relatively high raw material cost of certain key citrus ingredients will be reflected in higher than normal year-end inventory levels.
“Looking to the year ahead, the level of order books across the Group are satisfactory. Whilst raw material prices are expected to remain high, which in turn may impact upon margins, the Group expects to continue to see the benefits of its strategy of focusing on selling added-value ingredient solutions to leading fast-moving consumer goods and beverage businesses, whilst maintaining a tight control of costs.
Treatt Plc’s results for the year ended September 30 will be announced on December 9.