British ingredients company Tate & Lyle has reported an operating profit increase in its full-year results, despite a 2% fall in sales.
Every business unit operated by the company reported an increase in operating profit, and the company’s overall operating profit rose 23% year-on-year to £286 million.
The company’s Primary Products arm, which includes its sweeteners and starches portfolio, performed particularly strongly, recording an operating profit of £166 million thanks to rising demand for sweeteners in the US and an increase in exports to the Mexican market.
However, the company’s overall net sales declined 2% to 2.71 billion from the 2.75 billion figure recorded in the last financial year, which the company attributed to falling corn costs across the globe.
Sales of new products such as the non-GMO starch Claria and the company’s stevia products offset this fall, and the company looks set to build on the rising demand for sugar alternatives after purchasing a 15% stake in stevia producer Sweet Green Fields this month.
Nick Hampton, Tate & Lyle’s chief executive, said: “Tate & Lyle delivered another year of progress, with good profit and cash delivery.
“Profit increased in all businesses, cash generation remained strong, and return on capital employed increased by 190bps to 16.2%.
“The group remains in a strong financial position, increasingly well-positioned to address growing consumer demand for healthier diets with less sugar, calories and fat and more fibre.
“To accelerate business performance and inject more pace into the organisation, we are implementing three programmes to sharpen our focus on our customers, accelerate portfolio development and to simplify the business and deliver greater productivity.”
© FoodBev Media Ltd 2019