8th Feb 2023 11:00
(Alliance News) - Tate & Lyle PLC on Wednesday said it expects revenue and profit growth every year for the next five years.
The London-based sweetener and food ingredients supplier said it expects revenue growth of 4% to 6% per year in the next five years to the end of March 2028, underpinned by high-single-digit growth in its Food & Beverage Solutions operations.
This is alongside earnings before interest, tax, depreciation and amortisation growth of 7% to 9% per year.
It added it expects an average return on capital employed improvement of up to 50 basis points per year, and set a new target to deliver USD100 million of cumulative productivity benefits.
Chief Executive Nick Hampton said ahead of Tate & Lyle's capital markets event on Wednesday: "Over the last five years, Tate & Lyle has been transformed into a growth-focused speciality food and beverage solutions business. A global leader in sweetening, mouthfeel and fortification, Tate & Lyle creates high-value speciality ingredients and solutions that meet growing global demand for healthier and tastier food and drink.
"At today's event we look forward to outlining the large and attractive markets we operate in, our portfolio of highly functional speciality ingredients that directly address growing consumer trends, our scientific and solutions capabilities, how we work with customers, and our purpose-driven approach fuelling our new focus on 'Science, Solutions, Society'."
In June, Tate announced it disposed 50% of a stake in its Primary products business in the Americas, which is now labelled as the Primient business.
Shares in Tate & Lyle were up 3.2% to 803.60 pence each in London on Wednesday morning. They are down fallen 3.6% in the previous 12 months.
By Greg Rosenvinge, Alliance News reporter
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