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(Alliance News) - Tate & Lyle PLC on Thursday posted higher profit and revenue in the six months to September 30, as the business was boosted by rising Food & Beverage Solutions and New Products revenue.
Meanwhile, the London-based food and beverage ingredients supplier declared a lower dividend, in line with a previous announcement.
The firm reported a tripled interim pretax profit growth to GBP68 million from GBP21 million. Revenue grew 29% to GBP849 million from GBP656 million. The company noted that its Food & Beverage Solutions united grew by 21% "including inflation price-through" while New Products revenue rose 19%.
Meanwhile, Tate lowered its interim dividend per share by 40% to 5.4 pence from 9.0 a year ago.
"After the effect of the share consolidation implemented in May 2022, this reduction is in-line with the previously communicated approach and reflects the smaller consolidated earnings base following the sale of the controlling stake in Primient, and is consistent with the step-down in the final dividend for the year ended 31 March 2022. An underlying growth of 2.5% has been applied to the interim dividend," Tate explained.
In June, Tate announced it disposed 50% of a stake in its Primary products business in the Americas, which is now labelled as the Primient business. The Primient deal cut the company's earnings base by 50%, Tate & Lyle said. Tate & Lyle back then decided to reduce its dividend as a result. However, its payout ratio was maintained.
"The interim dividend for the year ending 31 March 2023 is expected to be similarly adjusted to reflect the new earnings base," the company said in June.
For its financial year 2023 ending on March 31, Tate expects revenue growth and to offset input cost inflation through pricing and cost discipline. It expects adjusted pretax profit to being in line with current market expectations, with stronger profit in Food & Beverage Solutions.
Tate & Lyle shares were 1.8% higher at 727.03 pence each in London on Thursday morning.
By Tom Budszus; tombudszus@alliancenews.com
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