Profits at UK food ingredients maker Tate & Lyle have jumped 85 percent in the last financial year bolstered by a weaker British currency and a strong company performance.
Sales increased 17 percent to £2.75 billion (US$3.57 billion) and the weaker pound helped to boost before tax profit to £233 million (US$302 million) up from £126 million (US$163 million).
Earnings per share more than doubled reaching 54.2 pence.
Meanwhile, the company also reported a £30m (US$39 million) increase in Sucralose profit following actions taken to refocus business, a £19m (US$24.6 million) decrease in Food Systems profit, with significant decline in Europe and a 22 percent increase in sales from New Products.
“This has been a year of strong performance. Both business divisions delivered good profit growth, with Bulk Ingredients delivering particularly good results, driven by excellent commercial and manufacturing performance,” says Javed Ahmed, Chief Executive.
“Speciality Food Ingredients performed well delivering profit growth and margin expansion, and continued to strengthen its focus on commercial execution, particularly in North America where volume growth remains challenging.”
“The innovation pipeline is healthy with New Product sales exceeding US$100 million for the first time. Cash generation was especially pleasing with adjusted free cash flow more than three times higher than the prior year, supporting improved dividend cover and a strong balance sheet.”
Originally a sugar refining business, Tate & Lyle began to diversify in the seventies and eventually divested its sugar business in 2012. Today, it specializes in using innovative technology to turn raw materials like corn, tapioca and oats into ingredients that add taste, texture, nutrients and increased functionality to food and beverage.
“Overall, these results reflect strong execution of our strategy and continued progress towards our 2020 Ambition, and are a testament to the talent and commitment of our people. This has been a very encouraging year that reflects the steps we have taken, and continue to take, to build a stronger business with higher quality earnings, capable of delivering sustainable long term growth,” adds Ahmed.
“Turning to the outlook, we are confident that the Group will continue to make underlying progress in the 2018 financial year.”
