23rd Jul 2020 10:54
(Alliance News) - Tate & Lyle PLC on Thursday said its performance in the first quarter of financial 2021 reflected the negative impact of lockdowns on out-of-home consumption in North America and Europe.
The sweetener and food ingredients maker said revenue from Food & Beverage Solutions grew by 1% to GBP232 million. However, that growth was offset by a 9% revenue decline in the Primary Products unit to GBP420 million and a 1% decline in the Sucralose unit to GBP39 million. Overall, group revenue for the quarter was 5% lower year-on-year.
Tate & Lyle said the financial harm caused by lower demand was mitigated by actions taken to reduce costs, which included freezing salary increases and recruitment as well as significantly reducing discretionary costs. It highlighted that no employees were furloughed and no government aid was sought.
Looking ahead, Tate & Lyle said that having seen fluctuating demand patterns in April and May, demand has improved, following the easing of lockdown restrictions. It added that while the full extent of the pandemic's negative impact remains unclear, it is confident on its future prospects.
"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. Our new business pipeline is healthy, we continue to find creative ways to use technology to support and connect with our customers, and all our manufacturing facilities remain fully operational. I am confident that our future prospects remain strong," said Chief Executive Nick Hampton.
As at the end of June, Tate & Lyle had net debt of GBP384 million, GBP67 million lower than at the end of March.
The stock was trading 2.4% higher at 668.20 pence each on Thursday morning in London.
By Ife Taiwo; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Tate & Lyle