Tate & Lyle group posts encouraging six-month performance following Gulfood Manufacturing
Tate & Lyle at Gulfood Manufacturing. Pic: Neill Barston
The Tate & Lyle ingredients group has offered a six-month trading statement that revealed an encouraging picture for the business, posting net profits up 11% to £122 million, though overall revenues for the period were down 7% to £775 amid challenging market conditions, writes Neill Barston.
Notably, the company, which has continued its focus on the ever-rising better-for-you reduced sugar option product segment, including series for the confectionery and bakery sectors, this week returned to Gulfood Manufacturing in Dubai.
As the company, which has benefitted from combining forces with CP Kelco, noted, there were some improved areas of performance for the business this year, including volumes being up 6%, with new product revenues being up 10%, as the business has continued to deliver a fresh pipeline of innovation across its portfolio.
Nick Hampton, CEO said: “It has been a momentous six months for Tate & Lyle. The combination with CP Kelco, preceded by the sale of Primient, transforms our business into a fully-focused speciality food and beverage solutions business directly aligned to attractive structural and growing consumer trends for healthier, tastier and more sustainable food and drink.
“The business has continued to perform well delivering a return to volume growth, continued strong profit growth and excellent cash generation. New Product revenue from our innovation pipeline and solutions new business wins both increased, and we announced an important new partnership for all-Americas sourced and manufactured stevia at scale. CP Kelco performed as expected delivering strong volume growth and higher revenue, underpinning our confidence in a phased recovery in its profitability over time.
“Since the announcement of our combination with CP Kelco in June, we have seen a very positive response from our customers who recognise the much broader innovation and solutions capabilities we will offer. A joint team has developed a comprehensive integration plan which is focused on three priorities – serving our customers, clarity for our people and delivering performance.
He concluded that the combination with CP Kelco would significantly strengthen Tate & Lyle’s position at the centre of innovation within the food sector, and that its key position in the sweetening, mouthfeel and fortification, deep scientific and solutions expertise, would likely prove core factors in its continued growth.
