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Tate & Lyle sees 82% drop in pre-tax profits

29th May 2015 - 09:26
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Tate & Lyle sees 82% drop in pre-tax profits
Abstract
Sweetener-maker Tate & Lyle has reported an 82% drop in annual profit to £51m in the year ended 31st March 2015.

Profits for its Splenda sucralose business fell 73% to £16m, a major factor in the group’s adjusted pre-tax profits, which were down by 30%, to £224m.

Javed Ahmed, chief executive of Tate & Lyle, said: “It has been a very challenging year for the Group, but with necessary actions underway we are firmly focused on improving our performance and continuing the evolution of Tate & Lyle into a global Speciality Food Ingredients business supported by cash generated from Bulk Ingredients.

“The fundamentals of our speciality food ingredients business and demand for our products remain strong. We have a portfolio of products with leading market positions, an expanding global footprint, and a steady flow of new products focused on major consumer trends, particularly in the health and wellness space; our speciality food ingredients business is well-positioned for the future.”

Adjusted operating profit for its speciality food ingredients business was 29% lower in constant currency at £149m and its Bulk Ingredients adjusted operating profit was 19% lower at £133m.

Tate & Lyle announced a business re-alignment last month to further focus on and strengthen the speciality food ingredients business, exiting its European bulk ingredients business and restructuing its Splenda sucralose business.

Ahmed concluded: “We anticipate that, in this year of change, adjusted proit before tax for the year ending 31 March 2016 will be broadly in line with the 2015 financial year on a pro-forma basis assuming the Eaststarch transaction completes in the summer as expected.

“The longer term outlook for the business remains positive. We expect the global market for speciality food ingredients to grow at mid-single digits and our objective is to grow modestly ahead of the market via organic growth supplemented by bolt-on acquisitions.”

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Written by
PSC Team