Analysts Downgrade Forecasts for Treatt plc, Expecting a 10% Revenue Decline in 2025.

Analysts have downgraded forecasts for Treatt plc, expecting a 10% decline in revenue to £130m in 2025 and a 42% drop in EPS to £0.11. Previously, analysts had modeled revenues of £134m and EPS of £0.14 in 2025. The downgrade suggests that analysts are more bearish on the company.

Analysts have significantly downgraded their financial projections for Treatt plc, expecting a substantial decline in both revenue and earnings per share (EPS) for the year 2025. The revised estimates indicate a 10% drop in revenue to £130 million and a 42% decrease in EPS to £0.11, compared to the previously forecasted £134 million in revenue and £0.14 in EPS [1].

The downgrade reflects a more bearish outlook from analysts, who have adjusted their expectations in response to recent market developments and company-specific factors. This shift in forecasts underscores the growing uncertainty surrounding Treatt plc's financial performance and its ability to meet previous growth projections.

Treatt plc, a trusted ingredients manufacturer and solutions provider to the global flavor, fragrance, and consumer goods markets, has been subject to significant volatility in its stock price and trading volumes in recent weeks. On July 25, 2025, the company's share price dropped by 26.3% during mid-day trading, reaching as low as GBX 180 ($2.43) before recovering to GBX 186.40 ($2.52) [2]. This sharp decline was attributed to a reduction in the price target by Berenberg Bank from GBX 440 to GBX 250, while maintaining a buy rating on the stock [2].

The company's debt-to-equity ratio of 1.78, along with its current ratio of 4.06 and quick ratio of 0.87, suggests potential financial stability concerns [2]. Despite these indicators, Treatt plc continues to operate with a market capitalization of £124.30 million and a P/E ratio of 11.11, with a beta of 1.02, reflecting its position in the market [2].

The latest earnings report from Treatt plc, released on May 13, 2025, indicated a quarterly EPS of GBX 4.49 ($0.06), with analysts expecting an EPS of approximately £0.11 for the current fiscal year [2]. The company has a robust operational infrastructure and a commitment to developing innovative ingredient solutions for the global market [3].

However, the recent downgrade in financial forecasts by analysts highlights the need for investors to closely monitor Treatt plc's performance and adjust their investment strategies accordingly. The company's ability to navigate these challenges and meet the revised expectations will be crucial in determining its future prospects.

References:
[1] https://www.marketbeat.com/instant-alerts/treatt-lontet-stock-price-down-263-time-to-sell-2025-07-25/
[2] https://www.marketbeat.com/instant-alerts/treatt-lontet-shares-down-263-heres-what-happened-2025-07-25/
[3] https://www.marketbeat.com/instant-alerts/fy2025-eps-forecast-for-sierra-bancorp-reduced-by-analyst-2025-07-31/