7th Nov 2019 09:16
(Alliance News) - Tate & Lyle PLC on Thursday said it expects to deliver earnings growth in its current financial year following a surge in profit in the first half.
Tate & Lyle shares were trading 7.3% higher in London on Thursday at 712.40 pence each.
The FTSE 250-listed supplier of food and beverage ingredients reported a pretax profit for the six months to the end of September of GBP164 million, 45% higher compared to GBP113 million a year ago, as sales grew by 6.7% to GBP1.48 billion from GBP1.38 billion.
The London-headquartered company said new product sales were 12% higher year-on-year, driven largely by the clean-label starches and fibre products.
Tate & Lyle increased its interim payout to 8.8 pence a share from 8.6p paid a year prior.
"We made encouraging progress in the first half," said Chief Executive Nick Hampton. "Our priorities to sharpen the focus on our customers, accelerate portfolio development and simplify the business are driving momentum across the organisation and supporting performance."
Looking ahead, Hampton added: "Despite market challenges, our outlook for the year ending March 31, 2020, is unchanged and we continue to expect earnings per share growth in constant currency to be broadly flat to low-single digit."
The company said it is on track to deliver its four-year USD100 million productivity target. This programme started last year to drive supply chain and selling and administration costs benefits, delivering GBP25 million in productivity benefits in its first year.
By Evelina Grecenko; [email protected]
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