Tate & Lyle sees improved demand as lockdowns ease

(Sharecast News) - Food and beverage ingredients group Tate & Lyle saw demand for its product improve during June as global coronavirus-related lockdowns began to ease.
Tate & Lyle said while its performance in the first quarter reflected the impact of lockdowns on out-of-home consumption in North America and Europe, this had been partially offset by resilience from in-home consumption during the period.

The FTSE 250-listed outfit said fluctuating demand patterns in April and May had improved in both its in and out-of-home divisions in June as lockdowns started to ease. However, it cautioned the full extent of the pandemic's impact still remained unclear.

For the three months to June ended 30, food and beverage revenues were up 1% at £232m, while volume was 2% lower as reduced demand for ingredients used in food and drink consumed out-of-home outweighed stronger demand for packaged and shelf-stable foods for consumption in-home. Suraclose revenues were down 1% at £39m, while primary products revenues were 9% lower at £420m.

Chief executive Nick Hampton said: "As expected, the first quarter presented many challenges and I am very proud of the way we are navigating the impact of Covid-19. Our new business pipeline is healthy, we continue to find creative ways to use technology to support and connect with our customers, and all our manufacturing facilities remain fully operational. "

As of 0845 BST, Tate & Lyle shares were up 2.79% at 670.80p. Tate & Lyle