26th May 2016 07:53
LONDON (Alliance News) - Tate & Lyle PLC on Thursday reported growth in profit in its recently ended financial year on lower exceptional costs, while revenue rose slightly as it works on its 2020 Ambition plan.
The food and beverage ingredients manufacturer said its pretax profit in the year ended March 31 multiplied to GBP126.0 million from GBP25.0 million the year before, as revenue rose slightly to GBP2.36 billion from GBP2.34 billion.
By division, sales in Specialty Food Ingredients grew by 4%, which Tate & Lyle said benefited from an improved mix of higher-margin products. Sales in Bulk Ingredients, meanwhile, fell by 1% due to the pass-through of lower corn costs and lower prices in the US for ethanol and co-products.
Profit was boosted by a drop in exceptional charges to GBP50 million from GBP142 million.
Tate & Lyle will pay a total dividend of 28.0 pence, which is flat on the prior year.
"Turning to the outlook for the 2017 financial year, subject to currency movements, we are confident the group will continue to make progress in line with our plan and towards our 2020 Ambition," Chief Executive Javed Ahmed said in a statement.
Tate & Lyle's 2020 Ambition is a plan "to further strengthen the business by 2020", by generating 70% of group profit from Specialty Food Ingredients, broadening the geographic mix of Specialty Food Ingredients' sales, and generating sales of USD200 million from new products.
Shares in Tate & Lyle were trading up 1.3% at 622.00 pence on Thursday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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