Tate & Lyle reports improved nine-month trading results
Tate and Lyle teams hard at work devising new flavours with healthier profiles. Pic: Tate & Lyle
The Tate & Lyle Group has issued its latest nine-month trading statement, revealing a 15% upturn in revenues, to £1.5 billion for the period, despite global trading uncertainties, reports Neill Barston.
As Confectionery Production has previously covered, the group has delivered a wide range of sweetening solutions for the confectionery, snacks and bakery markets, that have played a significant role in the respective sectors.
In terms of regional performance, the Amercas took the lion’s share of revenue, gaining £749million, while Europe delivered £475m, and Asia Pacific produced £282m, though the business did not release its net profit figures as part of the trading statement.
Nick Hampton, Chief Executive welcomed the results, which he said were in-line with its expectations.
He commented: “In November, at our interim results, we outlined a series of actions to drive top-line growth and improve performance. We made good progress on these actions during the quarter. We continued to make targeted investments in capabilities and technology to strengthen our customer offering, and saw further encouraging momentum in customer engagement in our combined portfolio. The value of cross-selling opportunities in the new business pipeline increased significantly in the third quarter.
Delivering the benefits of the CP Kelco combination continues to progress well with run-rate cost synergies and revenue synergies tracking in line with our expectations. Our 5-year US$200m productivity programme remains on-track with further savings delivered during the quarter.
As the CEO added, its prime concern is a priority returning the business to top-line growth, as the company sets out its development strategy.
He concluded: “In the near term, I am confident that the actions we are taking will improve the top-line performance of the business. Looking further ahead, our leading positions in sweetening, mouthfeel and fortification put us in a strong position to benefit from consumer demand for healthier, more nutritious food and drink.
“The breadth of our portfolio coupled with the targeted investments we are making to accelerate customer wins in key growth areas position us well to drive profitable revenue growth over time.”
