Treatt (TET) has reported H124 results to 31 March. As reported in the April trading update, revenue declined by 5.1%, or by 2.7% at constant currency. This implies Q224 constant currency revenue growth of 7.7%, despite a tough comp of +14%. Revenue fell sharply in Q124 due to de-stocking, which was no longer a headwind in Q224. The return to growth in Q224 was volume-led, with some price impact where TET passed on raw material inflation (notably in citrus). It was helped by business wins in Premium products (e.g. branded tea in North America) and China. H124 revenue was £72.1m (H123 £76.0m), as reported in the trading update, and PBT £7.6m (H123 £7.3m), versus the guidance of “c.£7.5m”. Operating margin was up 120bps despite the decline in revenue and percentage gross margin (down 40bps), showing the strong control of costs. DPS was up 2.0%, slightly below EPS growth of 3.4%, and consistent with our full year forecast, as TET rebuilds dividend cover towards its 3x target. Recent trading has been strong, with a record sales performance in March. The outlook for H224 is positive, with a solid order book and healthy pipeline. Premium sales, which were strong in H1, tend to be H2-weighted, which bodes well for revenue and profit growth. The H1 margin improvement also bodes well for H2, when revenue growth should deliver positive operational leverage. TET’s PBT expectations are unchanged, as are our PBT forecasts. We reduce our FY24E revenue forecast by 2% to £152m. This implies 12% revenue growth in H224E, which should be achievable given TET’s strong momentum, and an easy comp given customer de-stocking in H223. The business wins that TET has achieved in branded tea in North America, and with major players in China, are encouraging for the long-term outlook.