The UK-based company reported a 13 per cent increase in revenues for the full year ended September 30, to £56.31m (€62m). Earnings were up 11.5 per cent to £5.01m (€5.52m).
Treatt’s chairman Edward Dawnay said in the preliminary results statement: “2009 has been a strong year for the Group, especially given the very difficult economic environment…The Group continues to demonstrate its position as one of the leading, independent and truly global suppliers of ingredients (natural, organic, fair trade and aroma chemicals) for the flavour, fragrance and cosmetics industries.”
Earthoil
Apart from the strength of the US dollar, the company’s revenues were also boosted by characteristically strong citrus oil sales and by revenues from Earthoil, its organic and fair trade vegetable oil business, which were up 42 per cent over the previous year.
Treatt and Earthoil entered into a joint venture in 2007, but last summer Treatt exercised its option to buy the remaining 50 per cent of Earthoil, giving it control over day-to-day running of the business. Treatt took full ownership in April this year.
The company remains cautious about the 2010 financial year, saying that it has seen lower sales during the first quarter compared to the same period last year.
Dawnay said: “With lower commodity prices compared to a year ago, and a weaker US dollar, sales and margins may not be maintained for the coming year, although we do expect both Treatt USA and Earthoil to turn in stronger results.”
He added that the difficult economic environment has meant that many companies have not been placing long-term orders because of falling prices and uncertain consumer demand. However, “this situation may now begin to reverse once again in the light of upward price pressures,” he said.
Dawnay also announced that he would be stepping down as chairman of the board in February 2010, and James Grace, currently non-executive director of the company, has been appointed to succeed him in the position.