Tate & Lyle (LSE:TATE) PLC announced a strong performance for the first half, particularly in its Food & Beverage business, which is the focus of the group’s continuing operations after it announced earlier this year that it is selling its sweeteners division.
Revenue for the continuing business rose by 19% to £656mln in the six months to September 30, while pre-tax profits were up 20% at £85mln.
Food & Beverage Solutions revenue grew by 19% in the period, while revenue from the New Products business were 48% higher and sucralose revenue increased by 17%.
Pre-tax profits from total operations fell by 23% to £102mln.
Tate & Lyle increased its interim dividend by 2.3% to 9.0p.
Commenting on the outlook for the full year to end-March 2022, Tate & Lyle said it expects adjusted pre-tax profit growth in the high single-digit percentage range, while the Sucralose unit is expected to report a full-year profit ahead of the prior year.
Tate & Lyle said the plan to create two focused businesses is progressing well and it remains on course to complete the sale of a controlling stake in its sweeteners business to KPS Capital Partners, LP in the first quarter of 2022.
Chief executive Nick Hampton said: "In a year of significant change as we re-position Tate & Lyle as a growth-focused speciality food and beverage solutions business, the group delivered strong first-half performance despite inflationary headwinds.
“Consumer demand for healthier food and drink continues to strengthen across our markets and this was reflected in the performance of Food & Beverage Solutions which delivered strong volume and double-digit revenue growth across all regions."
He said the new Tate & Lyle is well-positioned to deliver on its five-year ambition for mid single-digit organic revenue growth and annual operating margin expansion of at least 50 to 100 basis points per year.
Shares were 5% higher at 681.40p in late morning trade.