22nd May 2025 10:10
(Alliance News) - Tate & Lyle PLC on Thursday reported a fall in its annual profit despite an increase in revenue.
The company cautioned that it expects revenue growth for the new financial year to be below its medium-term target range, however, amid tariff uncertainty.
Tate & Lyle shares were down 3.1% to 584.50 pence in London on Thursday morning.
In the year ended March 31, the London-based supplier of food and beverage products had a pretax profit of GBP88 million, down 56% from GBP201 million in financial 2024.
Exceptional charges on continuing operations amounted to GBP96 million, up from GBP24 million a year prior. M&A costs, meanwhile, rose to GBP86 million from GBP27 million, also hurting its bottom line.
Exceptionals included GBP59 million related to its decision to exit the firm's tapioca starch facility in Thailand as well as GBP24 million of integration costs and GBP13 million related to restructuring costs.
Revenue rose 5.4% to GBP1.74 billion in financial 2025, from GBP1.65 billion.
Tate & Lyle announced in June of last year that it would acquire pectin and gum business CP Kelco for USD1.8 billion. CP Kelco contributed annual revenue of GBP224 million since the acquisition was sealed in November.
Tate & Lyle declared a final dividend of 13.4 pence, up 3.9% from 12.9 pence a year earlier. Its total dividend rose 3.7% to 19.8 pence from 19.1 pence.
Looking ahead, Tate & Lyle said it expects revenue growth towards the higher end of its 4% to 6% every year in the medium-term.
However, for the current year, it said it expects revenue growth "slightly below" the bottom end of the medium-term range on a constant currency basis, when using a pro forma comparative. That comparative assumes CP Kelco was part of the business since the start of the financial year just ended. On a pro forma basis, revenue in financial 2025 totalled GBP2.12 billion.
"Our predominantly regional production model means we are well-placed to supply customers. However, tariffs and the associated uncertainty have increased costs for both us and our customers, mainly for products we supply between the US and China," Tate & Lyle said.
Chief Executive Officer Nick Hampton added: "As we start the new year, our focus is on delivering the benefits of the combination and accelerating top-line growth. Integration is progressing well and delivery of the synergies we previously announced is on-track. With significant opportunities ahead, we are confident in the growth potential of our business."
By Olivia Mason-Myhill, Alliance News reporter
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