Treatt - Upgrading revenue forecasts

Treatt has witnessed another good performance: H1 revenue grew by an impressive 9%, with growth across five of Treatt’s six categories. Management has upgraded its revenue growth expectations for the year to 15% and sees pre-tax profit being on track to meet current consensus of £21.7m, as the company continues to invest for the future. We upgrade our revenue forecasts in line with guidance, though our profit forecasts remain broadly unchanged. As per previous guidance, H2 is expected to witness both higher revenue growth than H1 and higher margins, thus reverting to a more normal H1/H2 split following two years distorted by the consequences of lockdowns.