TET has released a trading statement covering the first four months of FY25 (October – January). Fiscal Q1, which is TET’s smallest quarter, was in line with management expectations. Fiscal Q2 “has started well” and TET is “encouraged by a robust pipeline and order intake”, which bodes well for H1 and indeed for the rest of FY25. The company’s outlook for the full year remains unchanged, and we make no changes to our forecasts. However, we see this statement as positive and supportive of our estimates. As a reminder, TET set out a comprehensive growth plan at its FY24 results presentation in December. This covered three main areas: (i) expanding reach (ii) broadening into high value categories and (iii) a differentiated service model. The first focuses on entering more geographies, outside of North America and Europe, particularly in Asia. The second includes pushing premium products harder and building on TET’s existing presence outside of carbonates, where growth in high-value categories (such as energy and sports drinks) would be margin-enhancing over time. Progress here should leave the medium-term operating margin target of 15% (from 13.0% in FY24) looking very achievable. The third is about getting closer to customers, including through the new regional structure, which is already in place. TET has already made much of the investment required to achieve these objectives. It has c.50% spare capacity in the UK and c.30% in the US, has most of the necessary technological expertise, and has already put additional regional sales resource into the US and Europe. Where it is looking to move into new markets, it will use local distributors, which is a low-cost option. Its new Shanghai Innovation Centre, which is on track to open later this year, is being funded within existing budgets.