Tate & Lyle PLC (LSE:TATE) said the full-year performance of its continuing operations is now expected to be stronger than previously forecast.
Adjusted pretax profit from continuing operations is predicted to show growth in the low double-digit percentage range at constant currencies for the year to end-March 2022, the company said in a trading statement.
The group’s total operations are forecast to report mid-single digits growth in adjusted EPS due to the performance of the discontinued business and inflation.
Tate & Lyle said trading in the third quarter was in line with its expectations, with the Food & Beverage Solutions division reporting 19% growth in revenue and New Products also remaining strong with revenue growth of 54%.
Compared with the same period in pre-pandemic 2019, Food & Beverage volume was 12% higher and revenue 31% higher, the group added.
“We enter 2022 in a strong position,” said chief executive Nick Hampton. “Our new business pipeline in Food & Beverage Solutions is healthy and in both our businesses we have renewed 2022 calendar year customer contracts that offset inflation.”
The company said it is on track to complete the sale of a controlling stake in its Primary Products business in the Americas by the end of March.
It reiterated its intention to return around £500mln to shareholders by way of a special dividend.
Shares climbed 7.44% to 741.57p.