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(Sharecast News) - Tate & Lyle cut its full-year revenue outlook on Wednesday as it said posted a drop in third-quarter revenue due to softer demand.
In an update for three months to the end of December 2023, the company said revenue dipped 4% mainly due to softer demand and the phasing of orders into the fourth quarter.
The food and beverage division saw revenues fall 3%, while Sucralose and Primary Products Europe saw declines of 2% and 14%, respectively.
For the year to the end of March 2024, it expects revenue to be "slightly lower" on the year, having previously forecast growth. Earnings before interest, tax, depreciation and amortisation are still expected to grow between 7% and 9%.
Chief executive Nick Hampton said: "Tate & Lyle delivered resilient performance in challenging market conditions.
"In Food & Beverage Solutions, volume and revenue were lower than the comparative period. This was due to a combination of softer consumer demand and customer de-stocking, reduced inflation pass through, and some customers phasing orders into the fourth quarter when new calendar year contracts, which included the pass through of input cost deflation, came into effect. Sucralose delivered an improved performance.
"The renewal of customer contracts for the 2024 calendar year is expected to deliver a sequential improvement in volume growth as the year progresses. Reflecting this, and the phasing of some customer orders from December, we saw good volume growth in January."
