Tate and Lyle projects further growth after positive annual results
UK ingredients business Tate and Lyle has forecast renewed growth following its annual results posted an 8% increase in its food and beverage solutions profits, to £137 million.
The company also recorded a 13% rise in adjusted profits before takes, though its overall sales fell 2%, to £2.7 billion, which is reportedly down to a 10% fall in sucralose sweetener revenues.
Within confectionery, Tate and Lyle has built a specialism within its global operations for reformulating products to meet consumers growing demand for products with reduced sugar volumes.
Nick Hampton, chief executive, said: “Tate & Lyle delivered another year of progress, with good profit and cash delivery. Profit increased in all businesses, cash generation remained strong, and return on capital employed increased by 190 bps to 16.2%.
“The group remains in a strong financial position, increasingly well-positioned to address growing consumer demand for healthier diets with less sugar, calories and fat and more fibre.
“To accelerate business performance and inject more pace into the organisation, we are implementing three programmes to sharpen our focus on our customers, accelerate portfolio development and to simplify the business and deliver greater productivity.”
He added that the company expected growth in the mid-single digit range, which he conceded would be impacted by energy and transport cost inflation in North America.