Profits have soared at a flavour and fragrance manufacturer in Bury St Edmunds.
Treatt, in Northern Way, saw its profits before tax surge by 15 per cent to £3.4 million for the six months to the end of March, compared to £2.9 million for the same period last year.
Revenue fell by one per cent to £40.9 million compared to £41.4 million for the same period the previous year.
The company has raised its interim dividend per share by five per cent to 1.35p. Last year the interim dividend was 1.28p.
Daemmon Reeve, chief executive, said: “The excellent work from our talented and driven teams continues to deliver success as we
evolve our business in line with our strategy.
The excellent work from our talented and driven teams continues to deliver success.Daemmon Reeve, chief executive
“I am pleased that we are both delivering increased profits to our shareholders and putting in place the levels of investment and planning needed to secure Treatt’s long term future as a leading global player in our chosen markets.”
Chairman Tim Jones said the fall in revenue was due to a change in product mix as work continued to move the firm up the value chain.
Mr Jones added: “Treatt has been investing heavily in R&D over the past three years and this expertise, combined with the customer insights we now have, is beginning to pay dividends in terms of a stronger product mix and better traction with our customers.”
Treatt’s product innovation and development work include reduced sugar innovations and the development of craft beer ingredient solutions.
It is also seeing growth from the development of sophisticated, price-stable, solutions for use in developing markets such as a lemon flavour for a carbonated soft drink in China or a grapefruit flavour for a local South East Asian alcoholic beverage.
Mr Jones said directors were confident that the group will meet its expectations for the year ending September 30.