Tate & Lyle PLC (LSE:TATE) reported growth in revenue and underlying profit for its continuing operations for the year to 31 March 2022 and forecast profit in line with market expectations for the current year.
The food and drinks ingredients company announced revenue for its continuing operations of £1.37bn for the year to end-March, a rise of 18% from the previous year. Adjusted pre-tax profit from continuing operations grew 14% to £145mln.
Tate & Lyle noted that it mitigated £100mln of cost inflation in its continuing operations during the year through pricing, productivity, cost discipline and volume/mix.
The FTSE 250 company is paying a final dividend of 12.8p, giving a full-year payout of 21.8p, down from 30.8p the prior year. The lower dividend reflects the company’s new earnings base and associated share consolidation, following the return of £500mln to shareholders.
"This has been a landmark year for the company. New Tate & Lyle delivered double-digit organic revenue growth across all regions and double-digit profit growth despite significant inflation across the supply chain,” commented chief executive Nick Hampton.
He said the company passed a major strategic milestone during the year by selling its controlling stake in Primary Products in the Americas and refocusing the group on its speciality food and beverage solutions business.
“Tate & Lyle is now a focused global leader in sweetening, mouthfeel and fortification, and very well-placed to benefit from growing consumer demand for healthier food and drink,” Hampton added.
The CEO said the group entered the current financial year with strong top-line momentum and forecast adjusted profit before tax in line with market expectations.
“Customer demand remains high and while the conflict in Ukraine has caused significant inflation in raw material, energy and logistics costs globally, we are taking actions to mitigate these pressures including supplementary pricing,” he said.
In a separate statement, Tate & Lyle announced that it has completed the US$237mln acquisition of the Chinese dietary fibre business Quantum Hi-Tech (Guangdong) Biological Co., Ltd, which was announced in March.
Shares were 2.95% higher at 767p.