High prices for orange oil have helped boost sales at a Suffolk-based ingredients supplier to the flavour and fragrance industries.

Bury St Edmunds-based Treatt said yesterday that 'the world continues to eat, drink and buy cosmetics, regardless of economic conditions'.

Its sales for the year ended September 30 rose 12pc to �63.3m, with pre-tax profit up 29pc to �4.5m.

It is the twelfth successive year the firm has seen its sales grow – the last three years alone have seen a 66pc increase.

This was despite a weak start to the year after demand slowed at the end of the 2009 financial year.

'In January 2010 demand began to recover and sales of the group's products rose sharply across the broad range of new and existing customers, reaching record levels in terms of both volumes and value in the third quarter,' said chairman James Grace in the firm's prelimin-ary results statement.

'The final quarter of the year was significantly stronger than the corresponding period last year.'

Part of the increase was due to businesses re-stocking following a period of heavy de-stocking in 2009, said Mr Grace.

A strong boost to trade was due to a rise in the price of orange oil products, which are 17pc of the group's revenue, said Mr Grace.

'During 2010, as a result of unprecedented climatic conditions, including a drought in Brazil and a freeze in Florida, coupled with high demand for orange oil co-products, orange oil prices have reached historic highs of well over $6/kg,' he said.

However, he also aired caution over future volatility in the price of orange oil and other raw material costs.

'The next 12 months could be somewhat tumultuous for the group as raw material and product prices reach their peak with a significant risk that prices, in particular orange oil, could then fall sharply resulting in potentially large stock losses,' he said. 'The group has many years' experience of dealing with such situations and steps are in place to mitigate these losses where possible.'

The firm employs 155 people in Bury St Edmunds and 65 in America.

Net profit for the year end was �654,000, down from �2,488,000 in 2009.