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Tate & Lyle profit jumps 45% in first half
7th Nov 2019 10:44
(Sharecast News) - Tate & Lyle reported a 45% jump in first-half profit on Thursday as revenue ticked higher, with the food and beverage solutions division putting in a solid performance.
In the six months to the end of September, statutory pre-tax profit rose to £164m from £113m in the first half of last year as sales pushed up 7% to £1.4bn. The dividend per share was lifted to 8.8p from 8.6p.
Adjusted operating profit in the food & beverage solutions business grew 17% to £90m, with new products sales up 12% to £55m, representing 11% of the division's sales.
Operating profit in the sucralose segment was 5% higher at £29m, with production efficiencies and customer mix largely offsetting lower volume.
Profit in primary products ticked up 1% to £86m but was down 5% at constant currency, with profit from sweeteners and starches 5% lower.
Chief executive Nick Hampton said: "We made encouraging progress in the first half. In food & beverage solutions, increased focus on pricing and mix management delivered strong growth. Profit from primary products was lower despite good performance from our manufacturing and supply chain network as market conditions continued to be challenging.
"Both divisions benefited from productivity gains and cost discipline. Cash generation was higher and during the half we took further actions to strengthen our balance sheet."
Despite market challenges, Hampton said the outlook for the year to the end of March 2020 is unchanged and the group continues to expect earnings per share growth in constant currency to be broadly flat to low-single digit.
At 1040 GMT, the shares were up 5.8% at 702.21p.
In the six months to the end of September, statutory pre-tax profit rose to £164m from £113m in the first half of last year as sales pushed up 7% to £1.4bn. The dividend per share was lifted to 8.8p from 8.6p.
Adjusted operating profit in the food & beverage solutions business grew 17% to £90m, with new products sales up 12% to £55m, representing 11% of the division's sales.
Operating profit in the sucralose segment was 5% higher at £29m, with production efficiencies and customer mix largely offsetting lower volume.
Profit in primary products ticked up 1% to £86m but was down 5% at constant currency, with profit from sweeteners and starches 5% lower.
Chief executive Nick Hampton said: "We made encouraging progress in the first half. In food & beverage solutions, increased focus on pricing and mix management delivered strong growth. Profit from primary products was lower despite good performance from our manufacturing and supply chain network as market conditions continued to be challenging.
"Both divisions benefited from productivity gains and cost discipline. Cash generation was higher and during the half we took further actions to strengthen our balance sheet."
Despite market challenges, Hampton said the outlook for the year to the end of March 2020 is unchanged and the group continues to expect earnings per share growth in constant currency to be broadly flat to low-single digit.
At 1040 GMT, the shares were up 5.8% at 702.21p.