28th Jan 2021 09:51
(Alliance News) - Tate & Lyle PLC on Thursday said it expects annual profit to modestly exceed the prior year after an improved revenue performance in its third quarter.
The London-headquartered food and beverage ingredients firm said its revenue rose 8% year-on-year for the three months ended December 31, its third financial quarter.
This included an 8% increase in revenue from its Food & Beverage Solutions business compared to the prior year, as well as a 9% rise in Primary Products revenue. More negatively, revenue in the Sucralose sweeteners business dropped 3% from a year before as a result of customer mix and pricing pressure.
In terms of volume, Food & Beverage Solutions saw a 5% improvement, Primary Products a 4% improvement, and Sucralose a 1% rise.
For its financial year ending March 31, Tate & Lyle expects to report a modest improvement in adjusted pretax profit in constant currency, thanks to continued Food & Beverage Solutions momentum, as well as sharply higher commodities prices and cost discipline. Adjusted figures exclude exceptional items, amortisation of acquired intangible assets, and other non-operating items.
For financial 2021, Tate & Lyle is forecasting an adjusted effective tax rate of between 12% and 14%, with adjusted earnings per share forecast to be well ahead of the prior year as a result.
Chief Executive Nick Hampton said: "While the operating environment remains uncertain and out-of-home consumption continues to be below pre-pandemic levels, the business has positive momentum. We remain focused on delivering our priorities and are well placed to emerge from this period an even stronger business."
Shares in Tate & Lyle were up 2.9% at 680.00 pence in London on Thursday morning.
By Anna Farley; [email protected]
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