Tate & Lyle profits rise on higher prices

10th Nov 2022 08:19

(Sharecast News) - Food and drink ingredient maker Tate & Lyle posted a rise in interim profits, driven by higher prices.

Pre-tax profit for the six months to September 30 rose 10% to £139m. Revenues grew by a fifth to £849m.

"We have seen significant inflation and supply chain volatility in raw materials, energy and logistics costs, especially in Europe. We have worked closely with our customers to provide visibility of increasing input costs and continue to follow this approach as we enter discussions for 2023 calendar year contract renewals," the company said on Thursday.

Chief executive Nick Hampton said the business "continued to see robust customer demand for solutions which make healthier food and drink".

He added that the company mitigated £85m of gross cost inflation through strategic mix management, pricing, productivity and cost discipline.

Underlying volume across its food and beverage solutions rose by 2%, while revenue rose 21% with double-digit organic growth across all regions and an adjusted operating profit at £113m, up 26%.

Reporting by Frank Prenesti for Sharecast.com