Tate & Lyle pleased by volume momentum

25th Jul 2024 15:12

(Sharecast News) - Tate&Lyle reported an increase in operating profits at the start of its 2025 fiscal year.

That was despite the drag on the topline at its Food & Beverage solutions unit, although revenue growth at Sucralose was described as "good".

All in all, in a trading statement for the three months ending on 30 June the food ingredients maker said that group performance had met management's expectations.

It's encouraging to see volume momentum across the business, and we continue to expect volume growth to accelerate as the 2025 financial year progresses," the company's chief executive officer, Nick Hampton, said.

"Planning for the integration of Tate & Lyle and CP Kelco is progressing well with both organisations excited about the opportunity to deliver significantly greater value for customers and the growth potential of the combined business. We look forward to the future with confidence."

On 20 June the company had announced its intention to acquire CP Kelco, the pectin provider, for $1.8bn (£1.4bn).

Ahead of its AGM, the company also reiterated guidance for a dip in revenues on a constant currency basis while earnings before interest, taxes, depreciation and amortisation were seen rising by 4-7%.

As at 24 July, the company had repurchased 6.7m of its own shares at a cost of £42m as part of the £215m share buyback programme unveiled on 20 June.

Shares in Tate&Lyle were adding 0.86% to 648.50p as of 1510 BST.