28th May 2015 06:45
LONDON (Alliance News) - Tate & Lyle PLC Thursday reported a huge drop in profit in its recently-ended financial year after suffering from issues with its supply chain, a weak performance from its bulk ingredients business, and tough market conditions for its SPLENDA Sucralose product.
The FTSE 250-listed sugar and sweeteners company reported a drop in pretax profit in the year to March 31 to GBP51 million from GBP277 million the year before, as sales fell to GBP2.4 billion from GBP2.8 billion.
Tate & Lyle said its performance was hit by operational and supply chain issues experienced in the first half of the year, volatility and lower pricing in the second half in some commodity markets in which its bulk ingredients business operates, and a continued extremely competitive market for SPLENDA Sucralose.
Still, Tate & Lyle said it will increase its dividend for the full year to 28.0 pence from 27.6p, an increase of 1.4%.
"It has been a very challenging year for the group, but with the necessary actions underway we are firmly focused on improving our performance and continuing the evolution of Tate & Lyle into a global Speciality Food Ingredients business supported by cash generated from Bulk Ingredients," Chief Executive Javed Ahmed said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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