21st May 2020 10:07
(Alliance News) - Tate & Lyle PLC on Thursday reported a higher annual profit following a particularly strong performance from Food & Beverage Solutions and a lower charge for exceptional items.
The sweetener and food ingredients maker posted a GBP296 million pretax profit for its financial year that ended March 31, up 23% from GBP240 million the year before as revenue climbed 3.6% to GBP2.88 billion from GBP2.78 billion.
Food & Beverage Solutions revenue rose 5% to GBP942 million, with growth in all geographies. Sucralose revenue fell 4% to GBP161 million but Primary Products revenue was 2% higher at GBP1.78 billion.
On top of this, Tate & Lyle recorded a GBP24 million exceptional charge, a 58% reduction from the prior year's GP58 million charge.
The company will pay an unchanged final dividend of 20.8 pence per share, taking the annual total up 0.7% to 29.6p per share.
In April, following Covid-19 lockdown measures, Tate & Lyle's Food & Beverage Solutions volume was in line with the prior year, while Sucralose volume was 18% higher. Primary Products bulk sweetener volume was down 26% and industrial starch volume was 9% lower.
The firm has taken steps to preserve its cash and maintain its financial strength, including a freeze on all discretionary sales increases, a halt to non-essential discretionary spending, and the reprioritising of capital commitments. Tate & Lyle also has stopped recruitment for non-essential staff. So far, it has not needed to furlough any employees or the make use of government aid.
Chief Executive Nick Hampton said: "As the length and extent of the pandemic remains uncertain, we are not issuing guidance for the year ending 31 March 2021 To keep all stakeholders informed of our progress during these uncertain times, we will issue an exceptional first quarter trading update on 23 July 2020.
"In the year ahead our priorities are clear - to look after our people and communities, strengthen our relationships with customers, continue to progress our strategy and maintain our financial strength.
"Tate & Lyle is a resilient business that meets challenges head-on. The fundamentals of our business remain sound despite the challenges of Covid-19. Our high-quality portfolio of ingredients and solutions enable consumers to enjoy healthier and tastier food products and drinks. Demand for these products is growing and this trend is here to stay. Combined with our financial strength, this gives me confidence we will navigate this period successfully and that our future prospects remain strong."
Shares in Tate & Lyle were up 1.8% at 645.20p in London in morning trading.
By Anna Farley; [email protected]
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