Treatt has reported an 11.8% decline in annual revenue to £132.5m, although the figure was in line with previous guidance.

The coffee and tea manufacturer said its latest revenue, down from £150.2m last year, was due to the impact of sustained high citrus prices and “ongoing softness” in US consumer confidence.

Treatt was announcing its audited results for the year to 30 September and posted a pre-tax profit of £7m, a 60.9% drop from last year when it made £17.9m. The group said the fall was primarily from “prolonged challenging market conditions”.

The UK-based company, which supplies natural extracts and ingredients for the beverage, flavour and fragrance industries, also hinted that tariff uncertainty in the US had affected market conditions.

“It has been a challenging year for Treatt, exacerbated by weak market conditions and soft consumer demand in the US, tariff uncertainty and sustained high citrus prices,” commented interim group managing director, Manprit Randhawa.

“Treatt has made good strategic progress and delivered revenue and profit in line with our revised guidance set out in the group’s trading update in July despite the considerable headwinds faced during the year.

“Treatt is looking to the future with optimism after a period of turbulence.”

In a separate announcement, Treatt also revealed it has entered into a customary relationship agreement with major shareholder, German group Döhler Finance Management.

This agreement will mean that Döhler, which has a 28% stake in Treatt, will conduct all transactions and arrangements between itself and Treatt “at arm’s length”, the company said. As part of the agreement, Döhler has also nominated a candidate, Helga Moelschl, to join the Treatt board as a non-executive director.

The relationship agreement will terminate if Döhler’s shareholding falls below 25%.

Treatt chair, Vijay Thakrar, said: “The board is committed to acting in the interests of all its shareholders. I am pleased to announce the relationship agreement with Döhler, which is both a significant shareholder and a highly respected company in the ingredients, life science and nutrition industry.

“After careful consideration, the board concluded that it would be in the company’s best interest to enter into a suitable agreement with Döhler to regulate our relationship for the benefit of all shareholders and stakeholders of the company.”

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