Tate & Lyle posts strong half-year performance results with key industry solutions
Industry solutions group Tate & Lyle has recorded a notable upturn in its latest six-month results, recording revenues of £656 million, an increase of 19%, compared to the same period last year.
Net profits for the first six months of its latest financial year stood at £72 million, up 12%, with the business noting its achievements despite inflation pressures, delivering new products that have enhanced its growth potential.
The company has devised a number of solutions targeting the confectionery, bakery and snacks markets, that offer healthier option and sweetening series in response to heightened consumer demand for ‘better-for-you’ products.
“In a year of significant change as we re-position Tate & Lyle as a growth-focused speciality food and beverage solutions business, the Group delivered strong first half performance despite inflationary headwinds. Food & Beverage Solutions had an excellent half and we made good progress on the priorities we set out at the start of the year.
Consumer demand for healthier food and drink continues to strengthen across our markets and this was reflected in the performance of Food & Beverage Solutions which delivered strong volume and double-digit revenue growth across all regions. Our investment in innovation and focus on working more closely with customers continues to generate excellent results with revenue from New Products 48% higher.
As the business noted, its strategic transformation announced in July is reportedly progressing well and the business remain on course to complete the sale of a controlling stake in its Primary Products business in the Americas in the first quarter of 2022.
The strong performance of Food & Beverage Solutions underpins Tate & Lyle’s future potential as a growth-focused speciality food and beverage solutions business. The new Tate & Lyle is very well-positioned to deliver on its five-year ambition for mid single-digit organic revenue growth and annual operating margin expansion of at least 50 to 100 basis points per year, supported by increased investment in innovation and a strong balance sheet to fund both organic growth and M&A.
“We are entering a new, ambitious and exciting chapter for Tate & Lyle and I look forward to the future with great optimism.”