Tate and Lyle shows solid progress with annual results sales boost
Full-year results from ingredients and solutions business Tate and Lyle have shown a 2% overall rise in sales to £2.75 billion, with growth across its major global markets.
This included 3% increase in food and beverage solutions profit, to £143million, with figures showing a 3% volume increase within the segment. There was also an encouraging performance from its Sucralose profits, which were also up 11%, to £61 million, and rising 16% in volume.
While volume figures for the US rose 3% and 15% in emerging markets, Europe, Middle East and Africa suffered a 2% dip, as revenues within sweeteners and starches also declined 4%, which was said to be due to higher input costs. As Confectionery Production has previously covered at Gulfood manufacturing, the business continues to develop a range of solutions aimed at the sweets and snacks sector.
Nick Hampton, chief executive, welcomed the results, which he believed showed positive momentum for the business.
He said: “I am encouraged by our progress over the past year. The group delivered solid financial results and we are starting to see real momentum from the three priorities I set out last year to sharpen the focus on our customers, accelerate portfolio development and simplify our business.
“In Food & Beverage Solutions top-line momentum continued with solid volume growth in North America and double-digit growth in Emerging Markets. Sucralose performed particularly strongly. Primary Products did well to deliver steady volume in the face of challenging market conditions. Across the business, strong cost discipline helped offset higher than expected input costs and operational execution was excellent, particularly during the extreme cold weather in the US in early 2019.
“For the year ending 31 March 2020, we expect continuing progress in Food & Beverage Solutions and gains from productivity initiatives to offset both lower Sucralose profits and continued market challenges in Primary Products. As a result we expect earnings per share growth in constant currency to be broadly flat to low-single digit.”