Treatt Share Discussion Threads

[mrbeaky] 16/6/2021 07:26

TET recommended in The Times Tempus as a buy today

[edwardt] 10/6/2021 20:21

They normally like earnings momentum and quality- they have that here in spades.

[anley] 10/6/2021 12:44

with a 5% holding.

To get hold of that it must have mopped up all the loose shares from £12 down to say about £11...........

Some news will send this back up over £12 per share this summer.

[edwardt] 10/6/2021 12:29

welcome aboard standard life.

[truffle] 17/5/2021 11:30

And a positive write up in the Investors Chronicle

[jockthescot75] 15/5/2021 20:48

The fad for healthy, calorie light drinks wasn’t a factor in the 90’s. It was just a sugary alcopop.
That had materially changed now, and a “healthy”; alcoholic option send attractive.

[3800] 15/5/2021 20:11

hard-seltzers seem to be simlar to the alcopops as they were then called in the 1990s. It's hard to tell if they are just a passing fad or a more lasting trend.

[jockthescot75] 15/5/2021 20:06

Indeed. Great summary VPRT. It was a very interesting presentation.

[cfro] 15/5/2021 16:44

Absolutely vprt, and a kind thanks to PI world for putting together this excellent presentation to pi's.

I think it was the FD who emphasised that they have an additional 6 acres of land purchased for plans to expand the new US facilities and it could perhaps be even sooner than 2-3 years.

I also found the comments around China interesting too.

[vprt] 15/5/2021 16:06

Having listened to the earnings presentation and the analyst Q&A (on PI World, as linked to above), it is clear that Treatt is very successfully capturing highly profitable and rapid growth from the hard seltzer category. With the answers to the questions from Numis towards the end, it becomes clear that:
- several of Treatt's product categories benefit from this trend
- it is already a good chunk of revenues (I believe they guesstimated 15%)
- they have a strong proposition that really matters for the taste, combining expertise and solutions in e.g. sugar reduction and natural extracts
- they have a large market share by selling both directly and via F&F houses into the category
- the rapid growth is expected to continue for years, at least in the US, and they are looking at expanding production capacity in the US in 2-3 years, despite having very recently completed their new facility there.
- the market in ROW is more nascent - so with plenty of runway if the trend takes off, as it might

So, this seems very bullish for continued revenue growth and margin expansion in the medium term!

To quench my thirst for (more information about) hard seltzers (I have never tried one, but I certainly will, very soon!) I found a couple of articles that were helpful on this phenomenon:

hxxps://www.thegrocer.co.uk/alcohol/all-the-hard-seltzers-available-in-the-uk-and-where-to-buy-them/645198.article

hxxps://www.thespiritsbusiness.com/2021/01/hard-seltzer-sales-could-reach-75m-in-uk-by-2023/ - notice the global size

PS: If the links don't work: Replace xx with tt in the URLs. I simply googled hard seltzers 2021 to find these

[tomps2] 13/5/2021 12:22

Treatt (TET) 2021 interim results presentation to analysts

Daemmon Reeve, CEO and Richard Hope, CFO outline H1 results where they have seen revenue up 13.5%, with gross profit margin up 880bps; very strong growth has been enjoyed from the ‘healthier living’ categories. Good trading momentum continues with encouraging order book levels and further growth opportunities. Profit before tax and exceptionals for the current year is expected to be at least £20m, exceeding the current consensus of £18m.

Watch the video here:

Or listen to the Podcast here:

[jockthescot75] 13/5/2021 10:55

How boring - are all external links now taken out on ADVFN?

[jockthescot75] 13/5/2021 10:54

They've replied. Link is now on website.
[...]

[jockthescot75] 12/5/2021 18:24

Vprt- thanks. I’ve emailed them to find out anyway.

[srichardson8] 12/5/2021 10:12

This is all I can find on the co website this morning, the slide summary for 'major investors' - which is presumably what they are using for institutuional presentations this week



I look forward to the recording when available

[vprt] 12/5/2021 06:34

jock: Yes, that's my expectation based on what they said in the RNS yesterday:

"Analyst and investor conference call
A conference call for analysts and investors will be held at 9.00 a.m. today, 11 May 2021. For dial-in details, please contact MHP Communications at [e-mail]. A recording will be made available after the event."

[jockthescot75] 11/5/2021 20:06

Vprt- is the call intended to be listed on the Treatt investor relations section of the website?

[vprt] 11/5/2021 19:06

Beauuuuutiful margin expansion. A case study in what can happen when you achieve very fast growth (57% in the three "healtier living categories") in the highest gross margin parts of a business - which are becoming a larger and larger proportion of the total. And then also moving upmarket in citrus, lifting margins there as well...

The presentation to shareholders (the document) is on the website - highly recommended - but I have not yet seen any link to the recording of the analyst call which was promised (which I appreciate). Hopefully tomorrow.

Needless to say, but I'll say it anyway: Well done to everybody at Treatt!

[partridge1948] 11/5/2021 11:20

Very impressive half year numbers, particularly given the challenges of covid on some of their beverage markets, whilst also undertaking major build on new factory. Significant margin growth augurs well and they have a history of under promising/over delivering, so current optimism looks well placed. Always dyor.

[edwardt] 11/5/2021 06:56

adding another £2m to consensus or at least another 10% upgrade.

the coffee chat is properly exciting . no mention of veggie burgers.

the business is in the sweet spot.

[ayl30] 11/5/2021 06:05

Ahead of expectations, nice!