Tate & Lyle notes shifting consumer demand for healthier food and drink By Investing.com

By Samuel Indyk

Investing.com – In a full year trading update, Tate & Lyle said that revenue increased 1%, leading to a 6% increase in pre-tax profit to £335mln.

The company also managed to increase its dividend in the financial year by 4.1% to 30.8 pence per share despite the challenges brought on by the pandemic.

“Despite all the challenges thrown at us by the pandemic, we progressed our strategy, grew our profits, strengthened our financial position and increased our dividend,” said Tate & Lyle (LON:) CEO Nick Hampton.

Pandemic Changes

The food and beverage ingredients supplier said that they have noticed changes in consumers’ habits during the pandemic, noting that the pandemic has heightened consumer awareness of the importance of a healthier diet and lifestyle.

The company said it is well positioned to benefit from this due to its portfolio of products and technical capabilities which help to reduce sugar, calories, and fat, and add fibre to food and drink.

“The pandemic is accelerating consumer demand for healthier food and drink and with its leading capabilities in sweetening, mouthfeel and fortification, Food & Beverage Solutions is well-placed to capitalise on this trend,” Hampton added.

The company also reiterated its plans to business through the sale of a controlling stake in Primary Products to a long-term financial partner. The transaction would create two standalone businesses, each able to focus on its own strategic and capital allocation priorities.

Outlook

The company has been cautious on their outlook, given the uncertainty that still remains from the pandemic. Group adjusted diluted earnings per share are expected to be lower than the prior year in constant currency, reflecting significantly lower commodities profits and an increase in the adjusted effective tax rate.

At 10:40BST, shares in Tate & Lyle were trading lower by 5.6% at 769.14 pence per share.