UK – UK -based food and beverage ingredient supplier Tate & Lyle has recorded a 6% jump in profit before tax for the year ending March 31st, the group has said in a recently released statement.
The rise in profits can be attributed strong growth recorded by Food & Beverage Solutions and a higher demand for the company’s new products.
Tate and Lyle’s Food & Beverage Solutions saw volumes rise 3% resulting in a 6% growth in revenues and a 12% jump in profits to £177m (US$250m).
According to the company, there was also a strong demand for its New Products resulting in a 21% rise in revenues at £133m (US$188m).
Overall, the company’s profits before tax rose 6% to £335m (US$408m) from £331m (US$404m) recorded during the same period last year.
The group revenues however sank by £75m (US$105.98m) to stand at £2.807bn (US$3.97bn) in the year ending March 31.
Commenting on the results, Tate & Lyle Chief Executive, Nick Hampton said: “The past year has tested us like no other, and our performance has demonstrated the resilience, quality and agility of Tate & Lyle.”
During the year, Tate & Lyle acquired stevia and tapioca businesses in an effort to expand its customer offering and presence in Asia.
The company reported that its primary products delivered resilient performance with profit higher despite a significant reduction in out-of-home consumption in North America.
It has however reiterated its earlier stance that it is exploring the potential to separate Food & Beverage Solutions and Primary Products businesses through the sale of a controlling stake in Primary Products to a long-term financial partner.
Following a successful 2021 financial year, Tate and Lyle is confident of delivering positive results for the year ending 31march 2022.
The company noted that despite the continuing impact of the Covid-19 pandemic, it expects its Food & Beverage Solutions to deliver another year of progress and anticipates Sucralose to see further modest pricing pressure.
The food ingredients supplier further expressed confidence that the Primary Products, Sweeteners and Starches will return to growth as out-of-home consumption recovers and Commodities profits to be significantly lower.
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