Full-year profit and earnings at sucralose producer Tate & Lyle have taken a hit after a “very challenging year”.
Adjusted profit before tax was down 30% to £224m for the year to 31 March, while sales tumbled 14% to £2.7bn.
Javed Ahmed, chief executive, said: “It has been a very challenging year for the group, but with the necessary actions under way we are firmly focused on improving our performance and continuing the evolution of Tate & Lyle into a global Speciality Food Ingredients business supported by cash generated from Bulk Ingredients.
“The fundamentals of our Speciality Food Ingredients business and demand for our products remain strong. We have a portfolio of products with leading market positions, an expanding global footprint, and a steady flow of new products focused on major consumer trends, particularly in the health and wellness space; our Speciality Food Ingredients business is well-positioned for the future.”
Speciality Food Ingredients’ adjusted operating profit was 29% lower in constant currency at £149m, while Bulk Ingredients’ adjusted operating profit was 19% lower in constant currency at £133m.
Outlook
The company expects adjusted profit before tax for the year ending 31 March 2016 will be broadly in line with the 2015 financial year. This is dependent on the realignment of the Eaststarch joint venture and SPLENDA Sucralose, which is expected to complete in the summer.
The longer-term outlook is “positive”. A statement said: “We expect the global market for speciality food ingredients to grow at mid-single digits and our objective is to grow modestly ahead of the market via organic growth supplemented by bolt-on acquisitions.”
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