Tate & Lyle shares are rising amid rising profits

Tate & Lyle shares growth as the group gets a sweetened result despite “significant inflation” across the supply chain

  • Tate & Lyle recorded revenue and revenue growth last year
  • The FTSE 250 group has completed the acquisition of a Chinese prebiotic group

Tate & Lyle has abandoned “significant inflation” across the supply chain to increase revenue and profits over the past year.

The group, which expects its profits to fall this year in line with market expectations, also said on Thursday that it has completed the acquisition of a Chinese dietary fiber plant with prebiotics Quantum Hi-Tech (Guangdong) Biological.

Tate & Lyle shares today rose and rose 2.37 percent or 17.66 points to 762.66 points fell about 18 percent last year.

Enhancement: Tate & Lyle has seen revenue and profit growth last year

The food and beverage ingredients group posted revenue from its operating activities of £ 1.37 billion for the year to the end of March, an increase of 18 per cent over last year.

Its adjusted pre-tax profit from continuing operations rose 14 per cent to £ 14 million.

The company said it has mitigated cost inflation by £ 100 million in its ongoing operations through pricing, performance, cost discipline and volume / mix.

Boss Nick Hampton said: “It’s been a landmark year for the company. New Tate & Lyle has achieved double-digit organic revenue growth in all regions and double-digit profit growth, despite significant inflation throughout the supply chain.

“Tate & Lyle is now a dedicated world leader in sweetening, flavoring and strengthening, and has a very good position to benefit from the growing consumer demand for healthier food and beverages.

“Our strong balance allows us to invest in organic and inorganic growth, and the acquisition of Quantum Hi-Tech, a leading dietary fiber business in China, demonstrates our ability to further strengthen our portfolio and meet our growth agenda.”

The FTSE 250 group said it has brought “significant acceleration” to innovation with revenue growth from new products of more than 35 percent.

Adjusted diluted earnings per share fell 4 percent to 56 pence, and the group declared statutory dividends of 21.8 per annum for the full year, down 29 percent from the same period last year.

Laura Hoy, a stock analyst at Hargreaves Lansdown, said: “Tate & Lyle are keeping their promises to create the worst, most stingy machine for making ingredients.

“The group has reworked its portfolio to streamline its focus on the more lucrative parts of the business.

“The first set of results under this new structure did not disappoint when the menu, despite the inflationary headwind, increased both in the top and bottom row.

“Tate has overfulfilled its cost-saving program and has done so for years earlier than planned. This is a promising sign that the leadership has a clear vision of the future.

“Some of this progress may be confused by the challenges of inflation moving forward. Tate is heavily dependent on corn to produce its products, and it is one of Ukraine’s key exports.

“This is forcing prices to rise rapidly, and inflation in the last quarter offset some of Tate’s hard-fought efficiency gains. This may be a sign of the consequences if the cost of input continues to rise.

“However, the group seems to be in a better position than most to survive sustained inflation. This could be a long-term benefit for Tate as it opens the door for the group to acquire heavy ventures to complement the existing portfolio. ”


Tate & Lyle shares are rising amid rising profits

Source link Tate & Lyle shares are rising amid rising profits

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