Tate & Lyle’s joint venture drives bump in profits

Tate & Lyle’s (TATE) management is trying to turn it into “a growth-focused speciality business through a focus on revenue growth and margin expansion, ahead of volume”. This was apparent in the half-year results, with volumes down by 8 per cent at both the food and beverage solutions (FBS) and sucralose divisions, while the number of units shifted at the small primary products Europe unit fell by a quarter.

Price increases and mix could only do so much, however. Statutory revenues at FBS – the key division – nudged up only 2 per cent to £707mn, as consumer demand and de-stocking headwinds stymied growth despite a solid performance in European markets. Adjusted cash profits at the division were up 10 per cent to £153mn.