Tate & Lyle records encouraging annual results amid unprecedented challenges
Tate and Lyle PLC has recorded encouraging annual results, despite a ‘year that had tested us like no other’ according to CEO Nick Hampton, with revenues holding comparatively steady at £2.8 billion for the financial year ending March 31, 2021, reports Neill Barston.
Among its most positive performance came with its figures for food and drink solutions, including for confectionery, which were up 3% overall, to £970 million across the group.
Notably, the business recorded an upturn demand for New Products with revenue up 21% at £133m, with the company’s acquisition of stevia and tapioca businesses expanding customer offering and presence in Asia.
However, the were challenges elsewhere within its operations, with one of its key product ranges, Sucralose, with application for both confectionery and bakery series, down by 9% to £55 million, amid pricing pressure and production costs.
Nick Hampton, Chief Executive said: “Despite all the challenges thrown at us by the pandemic, we progressed our strategy, grew our profits, strengthened our financial position and increased our dividend.
“In response to the pandemic, we focused on making the right decisions for our colleagues, communities, customers and the environment. Inspired by our purpose of Improving Lives for Generations, this included protecting and supporting colleagues at our sites and at home, providing over one and a half million meals to food banks in our local communities, operating with agility to meet customers’ rapidly changing needs, and delivering significant progress on our sustainability targets. I would like to express my personal thanks to all our colleagues for their dedication during an extremely demanding year.
He explained that its businesses had performed well, with the impact of the pandemic starting to ease through the second half of its year, with Food & Beverage Solutions delivered another year of strong top-line growth and double-digit profit growth.
In its outlook for 2022, the company forecast overall positive momentum, with anticipated growth in the mid-single digit range, with its food and drink portfolio expected to make further gains.
Hampton added: “The pandemic is accelerating consumer demand for healthier food and drink and with its leading capabilities in sweetening, mouthfeel and fortification, Food & Beverage Solutions is well-placed to capitalise on this trend. Primary Products delivered resilient performance with profit higher despite a significant reduction in out-of-home consumption in North America. This reflects a record year of profits from Commodities as well as a focus on customer service, operational performance and rigorous cost discipline.
“We continue to make good progress on our strategy. We acquired two businesses in Asia to strengthen our sweetener and texturant portfolios in Food & Beverage Solutions. New Products delivered double-digit revenue growth, our new business and innovation pipelines both grew and our productivity programme continued to generate significant benefits.
“Since we announced our strategic priorities in 2018, we have delivered three years of consistent progress and built a strong platform for future growth. We are exploring the potential to separate our Food & Beverage Solutions and Primary Products businesses through the sale of a controlling stake in Primary Products to a long-term financial partner. This transaction would create two businesses, each able to focus on its own strategic and capital allocation priorities – Tate & Lyle focused on Food & Beverage Solutions, and Primary Products in partnership with a new investor with a long-term commitment to growing the business.”