Treatt has delivered FY22 results at the top end of the range indicated in its revised August guidance. The adjusted PBT was £15.3m (INVe £15.2m) and EPS 19.6p. The group closed the year with good revenue momentum, with sales up 12.8% to £140.2m (+9% on constant currency). Sales growth was achieved in all areas, with the exception of hard tea. Reported PBT was £16.2m after including an exceptional gain (property profit net of reorganisation/ moving costs). The FY dividend increased by 4.7% to 7.85p. The gross margin was 28.7%, down from FY21’s exceptional 34% for the reasons previously covered (FX hedging, the absence of hard tea revenue and inflation). Operating costs increased by c.12%, reflecting the investment made in the new site and staff. The resulting EBIT margin was 11.3%. The group closed the year with higher net debt reflecting the ongoing capex investment (now largely finished on the new UK site), but also a step up in working capital – some of this is due to inflation, but the group also increased stocks ahead of the transfer of manufacturing to the new site and to ensure availability given global supply chain issues. The group is expecting to return to growth in FY23 (6-8% sales growth guided). It has changed its FX hedging policy, thus is not expecting a repeat of the FY22 FX hit; in fact FX might be a small tailwind if current rates hold. We make no changes to our forecasts, with FY23E PBT of £16.9m, which is a £1.6m increase on FY22, but struck after sizeable headwinds - additional depreciation (£3m), some ongoing inflation (£1m+) and higher interest costs (c£0.5m). This is underpinned by its confidence in continuing to grow the top line, but with a better product mix, with growth favouring the value-added categories. We leave our FY24E forecasts unchanged too. BUY