Ingredients maker Tate & Lyle has posted flat sales but has seen a boost to profits, with unadjusted pre-tax profits rising from £25m to £126m.
Tate & Lyle reported flat sales growth, rising by 0.6% to £2.36bn in the year ended 31 March, although, on a constant currency basis, they fell 3%. Adjusted profit before tax came in at £193m, an increase of 5% year on year (yoy), in line with expectations.
The company’s speciality food ingredients division, which produces sugar substitutes, posted adjusted operating profit of 10%, while new product sales increased by 34% on a constant currency basis. Earnings per share rose by 8%, from 32p last year to 34.5p in 2016.
Javed Ahmed, chief executive, said: “Both business divisions [speciality food ingredients and bulk ingredients] delivered margin expansion and we completed the major structural change initiatives needed to further strengthen the business and drive higher-quality earnings.
“Turning to the outlook for the 2017 financial year, subject to currency movements, we are confident the group will continue to make progress in line with our plan and towards our 2020 ambition.”
Last month Tate & Lyle announced that it had appointed two non-executive directors.