Treatt Share Discussion Threads

[partridge1948] 19/2/2024 13:07

In my dreams we have an RNS confirming the two appointments and advising of trading ahead of expectations. (Share price currently suggests this is highly unlikely!)

[cfro] 19/2/2024 11:54

They might be better off calling off the search and promoting Ryan to CEO position and keeping Alison as CFO, i dunno but RG does seem more than capable with what he has achieved thus far..

[partridge1948] 19/2/2024 11:46

There was brief discussion about this Jolomo.If I recall correctly, without being specific, Chairman said they hoped to make decision sooner rather than later, but no timescale was given. Some reservations about the Chairman's performance on the day, but he has previously been Ok as non exec director and I have a lot of time for several other board members, so I do think they will make the right decision. Interim CEO Ryan Govender spoke well and looks to be in pole position,but almost one month on and no decision yet, so I am beginning to wonder. I also had a chat after the AGM ended with Interim CFO Alison Sleight, who again came across as professional and knows the business well.

[jolomo] 19/2/2024 08:28

Partridge. From the AGM did you get an impression of when they will make a decision on the CEO/CFO roles.

[partridge1948] 16/2/2024 18:24

CCH results for 2023 earlier this week showed organic volume growth 1.7% in the year, but 6.4% in the final quarter (and coffee up 31% in the year, albeit perhaps from a low base). Gave me a crumb of comfort in what we were told at the AGM (that there was a slow improvement being seen in volumes). Guess we will learn more when half year trading update comes out mid April.

[essentialinvestor] 16/2/2024 12:59

Yup, that's what I'm thinking - but may be a mile out on that.

[jolomo] 16/2/2024 08:31

Feels like the phrase, 'further sector destocking' could be imminent.

[essentialinvestor] 15/2/2024 18:50

Guidance cut on the way..?.

[yorek] 12/2/2024 16:28

Shortlist Unveiled for NED Awards 2024https://bmmagazine.co.uk/news/shortlist-unveiled-for-ned-awards-2024/

[cfro] 12/2/2024 09:15

Yes i saw that too. Obviously he is well regarded then by someone...

No idea then why and by whom he had 10% of the AGM votes casts against him. Guess that will remain a mystery and not anything to be concerned about.

[yorek] 12/2/2024 08:56

Apparently it was in The Times yesterday that Thakrar is shortlisted in the best FTSE All-Share NED awards next month

[cfro] 29/1/2024 17:50

Oh, so you have a better idea on who cast their votes against the Chairman then? Because unless you can disprove the theory then perhaps it is you that is really the daftest of the two of us Lol..

[phillis] 29/1/2024 16:52

As you say Coro
Pure speculation and daft at that

[cfro] 26/1/2024 12:03

Phillis before you post aggressive counter-replies to my post please be sure to read it thoroughly first! You will note that i said "employee shareholders" with the emphasis on the 's'..

partridge1948 (thanks for your post above btw) seemed to think that i might be on to something perhaps with regard to disgruntled former employees. It was just a thought on my behalf because i really don't know and if there happens to be then why are they disgruntled? Again i don't know.

Anyway my post was purely speculation. I have no idea why the 10% of votes was cast against the chairman or for what reason..

[partridge1948] 26/1/2024 10:27

I attended the AGM.There were one or two disgruntled former employees there,one of whom at least may still have a sizeable holding.Have to say chairman did not cover himself in glory and was essentially forced to read out the (poorly worded in my view) trading statement.Interim CEO came across well,seems to have learned good grasp of the business in short time he has been there.Proven at cutting the costs,now has to deliver on the top line. I formed the impression that Q2 is showing signs of improvement and half year numbers/prospects should be revealing one way or the other. Not selling any of mine, but always dyor.

[phillis] 25/1/2024 19:03

Lol
Employee shareholder?
What an absurd suggestion
Firstly as to the amount
And secondly as to career prospects

[cfro] 25/1/2024 16:10

Just glancing through the AGM voting results and what caught my eye was that the Chair ,Vijay Thakrar, had nearly 10% of the votes against his re-election. I wonder why that might be and whom exactly was casting those votes, maybe an institution or employee shareholders perhaps?

[cfro] 25/1/2024 09:45

Softer Q1 then but trading inline.

At these prices gotta be a sitting duck for one of the larger flavour houses to take them out imv..

AGM today, anyone going?

[loofyloofy] 24/12/2023 16:29

cfro - for that reason we can either deduce that Symrise et al are massively overpriced….or that TET are massively underpriced! Happy Xmas

[partridge1948] 24/12/2023 15:14

I stand corrected loofyloofy.

[cfro] 24/12/2023 14:57

loofyloofy,

I was just curious to look back through some your previous posts on Treatt and quickly came across your post from way back in March 9th 2016 (please forgive me for being nosey!).
In it you made a direct comparison to Symrise. A transcript of your post below:

Symrise´s results came out yesterday - herewith some comprisons:

EPS 1.90 euros per share 11.94 pence
Dividend 80 cents per share 4.04 pence
EBITDA Margin 22% 11.77%
Net margin 9.49% 9.3%
Share price 55.90 euros 175 pence
Price/earnings ratio 29.42 14.66
Dividend yield 1.4% 2.3%
Dividend cover 2.37 2.95

Interesting......I am not so sure the Symrise results were that good..on every other metric, apart from EBITDA, they are lower than Treatt. Net margins almost identical.

It just struck me. I have not looked at Symrise and currently don't have the time right now (it's Christmas!) to see where the comparison might stand today, but reading your post above it sounds like you do at least keep an eye on Treatt's higher rated competitors.

[loofyloofy] 24/12/2023 08:30

Not quite right part re. the ‘imperfections’ you talk about - normally the by-products of the various production processes (in the case of citrus essential oils) will end up in the personal care industry (detergents, air fresheners etc) as they are less intense in aroma profile and are therefore cheaper, but not imperfect. This new facility is mighty impressive, and with the current mkt cap could well attract outside interest, esp from Uncle Sam. As they have moved away from more commoditised products to higher end added value products over the past 10 years or so, they are increasingly reliant on some core ingredient suppliers, effectively outsourcing what they used to make, thereby allocating their capacity to higher margin business. The shares deserve to be rated alongside their much larger peers, imho (Symrise, Givaudan, Kerry, even IFF!), and if they do not end up there soon, to repeat, there should be outside interest. A long term SH, very excited about their prospects.

[partridge1948] 23/12/2023 20:45

Treatt has been around since 1886 and for many years, to the best of my knowledge, was basically a commodity trader in essential oils, mainly orange oil. They do indeed extract oils from a wide range of natural products and under Daemmon Reeve's leadership over the past 11 years have moved into providing flavourings and ingredients to a range of industries, dominated by beverage, where they have a blue chip customer base, both in the UK and the USA. The highest quality oils tend to go to the beverage customers and any with slight imperfections to the personal care segment. They are a small player in a huge market.I would commend you read the 2023 annual report on their website (or at least those bits not related to the lengthy compliance issues these days!).There is a picture on page 9 which shows a small part of the massive stills in the new factory.Their old premises were grotty and unlikely to create much of an impression with their main customers - I went to the new site for the AGM last January and from lay person point of view it looks state of the art.Many of the employees are shareholders.Having been a holder myself for well over 20 years, I tend to look at Treatt through rose tinted spectacles,so always dyor.

[sleepy] 22/12/2023 22:16

Thanks partridge. Do they take oranges and limes and extract oils and flavorings from them? (Not a holder, have never been)

[partridge1948] 22/12/2023 14:37

Fair comment sleepy. A combination of cost overruns/ time delays (primarily through covid) and forex mismanagement wrecked the rating. I did sell a few when they first hit £10, but it remains a big holding for me even after the drop. No news this week to justify the spike - perhaps a tip somewhere? The new factory is said to be able to handle some three times current volumes, so now over to the sales teams to fill that capacity at sensible margins. Worth noting also that the two biggest stock items orange and lime oil are currently at very high prices and prices are volatile in nature - strong cash position should be helped further if they were to drop back.Barring a big need for extra working capital, they might even be cash positive by half year end 31st March.