Tate & Lyle PLC (LSE:TATE) has cut its guidance after lower revenues over its third quarter due to softening consumer demand.
Revenue fell 4% during the three months to December 2023, the food and beverage product supplier said on Wednesday, prompting a downgrade to guidance.
Over the full year to March, revenue will likely fall slightly from £1.75 billion last year as a result, with the company previously predicting a rise.
Profits are still expected to grow between 7% - 9%, the company added.
“Volume and revenue were lower than the comparative period,” Tate & Lyle said.
“This was due to a combination of softer consumer demand and customer destocking, reduced inflation pass-through, and some customers phasing orders into the fourth quarter.”
Income from the group’s primary products in Europe fell 14% over the quarter, while revenue from food and beverage goods and sucralose sweeteners dipped 3% and 2% respectively.
Tate & Lyle added it is taking action to offset the impact of the growth in weight-loss drugs such as Wegovy and Mounjaro.
“The strategic repositioning of Tate & Lyle to focus on speciality food ingredients, and the investments we have made to strengthen our ingredient portfolio and solutions expertise, have positioned us well to benefit from the long-term trends towards healthier, tastier and more sustainable food and drink,” the company said.