Tate and Lyle makes half-yearly gains despite challenging markets
Ingredients and solutions business Tate and Lyle has produced half-year results that show an improved sales performance of £1.47 billion, against £1.38 billon for the same period in 2018.
According to the company, its food and beverage solutions delivered top-line momentum and double-digit profit growth, totalling £90 million.
The company presented a number of solutions for the confectionery and bakery sector at this year’s Gulfood Manufacturing event last month in Dubai (see our next edition for further coverage).
Overall, the business said its performance was in line with expectations, despite a dip in primary products which it attributed to challenging market conditions.
Nick Hampton, chief executive, commented: “We made encouraging progress in the first half. In Food & Beverage Solutions, increased focus on pricing and mix management delivered strong growth. Profit from Primary Products was lower despite good performance from our manufacturing and supply chain network as market conditions continued to be challenging. Both divisions benefited from productivity gains and cost discipline. Cash generation was higher and during the half we took further actions to strengthen our balance sheet.
“Our priorities to sharpen the focus on our customers, accelerate portfolio development and simplify the business are driving momentum across the organisation and supporting performance. We are also proud to have established an important programme to support sustainable agriculture for US-grown corn. Overall, the business is in a strong financial position and delivering clear strategic progress.
“Despite market challenges, our outlook for the year ending 31 March 2020 is unchanged and we continue to expect earnings per share growth in constant currency to be broadly flat to low-single digit.”