Treatt takes next step in Earthoil efficiency

By Jess Halliday

- Last updated on GMT

Earthoil is transferring its UK operations to the site of its parent company Treatt, in a bid to increase efficiencies further and exploit synergies.

Earthoil is a grower and processor of organic essential and pressed seed oils, which it supplies to the flavour, fragrance and cosmetics markets. Treatt and Earthoil entered into a joint venture in 2007, but last summer Treatt exercised its option to buy the remaining 50 per cent of Earthoil, giving it control over day-to-day running of the business, as a result of disappointing performance.

The companies have now announced that that Earthoil’s UK operations will be gradually transferred from Lichfield to Treatt’s international headquarters in Bury St Edmunds – starting with the warehouses, which are moving to a dedicated building at Treatt’s site.

A spokesperson for the company told that the shift will not impact dealings with customers; Earthoil sales director Campbell Walter will remain based in Lichfield.

In its interim results statement for the six months up to 31 March, Treatt said Earthoil has continued to show marked sales improvement, up 82 per cent year-on-year. It said that efforts were continuing to integrate Earthoil into Treatt management structures and save costs by exploring synergies between the two entities.

Overall, Treatt reported group revenue of ₤28.3m in the first six months of the financial year, up 31 per cent on the same point last year. Operating profit (EBITDA) was up 10 per cent to ₤2.2m. This performance was said to be in line with expectations, and despite the economic downturn.

The Earthoil group includes Earthoil Plantations Limited and Earthoil Kenya EPZ Proprietary Limited. Global operations include an organic and fair trade mint growers’ project in India, a manufacturing facility in Kenya, an organic and fair trade tea tree oil project in Kenya, and a new geranium plantation in South Africa.

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