26th Jan 2023 10:35
(Alliance News) - Tate & Lyle PLC on Thursday backed its outlook for the financial year ending March 31, as it expects adjusted profit to be in line with market expectations.
Shares were up 5.6% at 763.80 pence each on Thursday morning in London.
The London-based sweetener and food ingredients supplier said group revenue was up 16% in the three months to December 31.
It said Food & Beverage Solutions top-line momentum continued with revenue up 19%. "Revenue growth benefited from mix management, the pricing through of input cost inflation and acquisitions," it explained.
However, revenue from its Sucralose arm was down 8%, reflecting the unwind of orders phased into the first half. Tate & Lyle added it expected this fall.
The company didn't provide any actual figures on Thursday, just percentage changes.
Chief Executive Nick Hampton said: "Tate & Lyle continues to perform well with Food & Beverage Solutions delivering another strong quarter of double-digit revenue growth. We have successfully renewed 2023 calendar year customer contracts to recover higher input costs and, despite ongoing economic uncertainty, we continue to deliver against our strategy as a growth-focused speciality food and beverage solutions business."
Looking ahead, Tate & Lyle said its outlook for the financial year ending March 31 is unchanged. Adjusted profit before tax is to be in line with current market expectations.
Tate & Lyle said it continues to expect revenue growth "reflecting current top-line momentum".
Back in November, Tate & Lyle had reported pretax profit of GBP68 million in the six months to September 30, tripled from GBP21 million the year before. Revenue grew 29% to GBP849 million from GBP656 million.
By Xindi Wei, Alliance News reporter
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