25th May 2023 09:36
(Alliance News) - Tate & Lyle PLC on Thursday celebrated a strong year with greatly increased profit and rising revenue, and said it expects its annual results for financial 2024 to be in line with its growth plans for the next five years.
The London-based sweetener and food ingredients supplier said pretax profit was GBP152 million in the year ended March 31, multiplying from GBP42 million the previous year.
Revenue increased 27% over the same period to GBP1.75 billion from GBP1.37 billion.
Tate & Lyle's finance expenses increased 23% to GBP32 million from GBP26 million. The company also incurred a GBP24 million loss due to weaker performance from its minority holding in a joint venture with its Primient business. It said Primient "had a difficult year primarily due to operational challenges."
Tate & Lyle declared a final dividend for the year of 13.1 pence per share, up 2.5% year on year from 12.8p. However it declared a full year dividend of 18.5p per share, 15% down from 21.8p the year before.
Tate & Lyle expects progress in the 2024 financial year is in line with its "five-year ambition", including - both in constant currency - annual revenue growth between 4% and 6% and adjusted earnings before interest, tax, depreciation and amortisation growth between 7% and 9% up until March 31, 2028.
Capital expenditure for the current year is anticipated to be between GBP90 million and GBP100 million.
"It has been an excellent first year for the new Tate & Lyle with strong financial performance and significant strategic progress," said Chief Executive Nick Hampton. "Tate & Lyle's expertise in sweetening, mouthfeel and fortification plays directly into increasing consumer demand for food and drink which is healthy, tasty, convenient, and more sustainable and affordable.
"With our clear strategic focus and strong scientific and solutions capabilities, we are well-placed to progress our strategy and deliver on the five-year financial growth ambition announced in our Capital Markets Event in February 2023."
Shares in Tate & Lyle were 1.7% higher at 797.50p in London on Thursday.
By Emma Curzon, Alliance News reporter
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