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Tate & Lyle PLC (LON:TATE)’s revenue rose 16% in the third quarter, ignoring the effect of exchange rates.
Performance was driven by 19% growth in Food & Beverage Solutions, which benefited from higher prices and acquisitions. The Sucralose division saw an expected sales decline of 8%, as orders pushed through the first half of the year unwound.
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The full-year outlook remains unchanged, with revenue growth expected in line with current levels.
Input cost inflation is expected to be offset through several measures, with underlying profit before tax in line with current market expectations.
Tate & Lyle’s Earnings
Matt Britzman, Equity Analyst at Hargreaves Lansdown
“Third quarter trading was robust at Tate & Lyle, with double digit revenue growth showing resilient demand in the face of a round of price hikes and broader economic uncertainty.
It’s pleasing to see no material growth slowdown in North America, despite ongoing supple chain troubles, and volumes across the Food & Beverage Solutions business look to be holding up despite the higher prices.
We expected a slowdown in sales from the Sucralose division, as Tate pushed orders through the first half of the year – effectively front-loading performance there.
The Primient joint venture looks to be benefiting from planned price hikes and we’d expected to see performance continue to improve as we move through the second half and margins recover – it’s good to hear that’s progressing as expected.”