Treatt Share Discussion Threads

[steve3sandal] 21/2/2023 22:29

Mr Market’s prices are a fact and always right tonight! I’m hoping for a successful share price retest of 2022 lows and improved operating metrics which we are being guided for. I’d be very tempted by £5 and therefore just over 7% FCF.

[edwardt] 21/2/2023 19:23

A fcf/e of 7% is not exactly expensive- especially when they will / could double their capacity at new facility coming on stream. I would have thought earnings will be more resilient here than most here too but mr market is disagreeing with me and he is always right!

[cfro] 21/2/2023 15:59

Well, the various directors (and associates) see value here with a handful of varied buys the last couple days..

[sspurt] 21/2/2023 15:12

Still on 26x earnings to Sept 2023 and a fcf yield of 7% - way to pricey for me I am afraid.

[redwing1] 17/2/2023 15:45

Not sure how bullish that AGM statement actually was? Q1 sales were only up 3% at constant currency and surely Treatt must have raised prices since Q1 2022? That means that underlying volumes were probably down a little. Margins look OK though.

[cfro] 17/2/2023 11:32

The AGM statement was, i would say, moderately bullish and upbeat: Q1 sales are 9% ahead and trading inline, hence no nervousness there and costs, foreign exchange etc now appear to be back under control...

When we come on to the subject as to what the share price is doing, well, folk today have the attention span of a gnat. They are quick to buy in with little to no research and then quick to sell back out when the price does not do what they think or hope it will do.

[partridge1948] 17/2/2023 10:47

Disappointing to see sliding share price last few days on no news, albeit on fairly modest volumes. Next update a week or two into April,covering the half year to 31st March, so a rather uneasy wait. I remain happy with medium term prospects, but always dyor.

[cfro] 28/1/2023 09:09

Thanks so much for your AGM update.

[partridge1948] 27/1/2023 18:36

Attended the AGM. New CFO reasonably positive about the cash position, which deteriorated sharply last year for several reasons. One of these was investment in working capital. High year end levels of stock/debtors are now beginning to unwind and debtor days outstanding has reduced. Looks like over hedging (expensive loss) on forex last year was combined with wrongly forecasting large hard tea orders in the USA which did not happen. Lessons hopefully learned? New factory now about 98% effective, so there should be material gains in logistics cost and production capacity this year. Cautiously optimistic about current trading, as per statement released and new board members enthusiastic about opportunities for the business. Left feeling fairly comfortable with what is a large holding for me, but always dyor.

[edwardt] 27/1/2023 08:22

they referenced improved margins from citrus which i assume is due to price increases so that should bode well. also good to have the new factory up and running properly.

[topvest] 27/1/2023 08:11

Only 3% at constant currency. Looks a bit lacklustre given the rate of inflation.

[cfro] 27/1/2023 07:19

AGM statement out. Q1 sales up 9% on the quarter.

[pedrolondon] 14/12/2022 12:36

Interested to learn, but why has Treatt had such a kicking ?!
I am wanting to hold because it appears Revenue, Gross Gearing, profit appear ok. Is it the dramatic Cash Flow drop ? I am aware of the new factory build.

[edwardt] 09/12/2022 11:46

New fd gets my vote - pretty impressive. Just shows renewed focus in a business is a must.

[cfro] 04/12/2022 11:35

Great Tomps2, thanks.

They hit the profits downgrade head on and talk in length about how they are addressing the various problems faced in August.

[tomps2] 02/12/2022 14:23

Treatt (TET) Full Year 2022 results presentation - November 2022

Treatt management, Daemmon Reeve, CEO and Ryan Govender, CFO present full year results for the year ended 30 September 2022.

Video:

Podcast:

[marcela9] 29/11/2022 22:12

nah…30+ future earnings…..forget it…..550 more like.

[viscount1] 29/11/2022 20:49

Underlying business looks good despite problems, and in particular they seem to be weathering inflation well which is what you want to see in a niche manufacturer.

Debt, cashflows etc. look manageable despite recent investments in plant.

Overall headlines did not look great, but looking through those to the operations there is a good opportunity to grow. Could also be a takeover target for their own customers.

I am keeping my holding.

[mr macgregor] 29/11/2022 20:45

I can tell you’re the life and soul of a party.

[viscount1] 29/11/2022 20:41

Liz Truss had nothing to do with it.

[topvest] 29/11/2022 18:12

The risk in FY23 is clearly around additional costs or disruption caused by the UK facility relocation of manufacturing. It looks like they might be running both factories for a transitional period. Outlook statement was also vague. Still on my watch list but too expensive given the uncertainty. Great company though.

[mr macgregor] 29/11/2022 17:17

Liz Truss.

[viscount1] 29/11/2022 13:28

They don't seem to make any attempt to explain the FX problem; i.e. what actually happened.

[c3479z] 29/11/2022 07:38

beverages and flavours said to be recession -resistant but probably not entirely?

[terminator101] 29/11/2022 07:30

27% reduction in profit. Dividend reduced. Downward trend will resume IMO