Tate & Lyle shares were up 3% to 768p in early morning trading on Thursday following a reported 18% revenue growth to £1.3 billion against £1.2 billion and a year-on-year 14% pre-tax profit growth to £145 million compared to £134 million in FY 2022.
The food producer further noted a post-tax profit decrease of 9% to £146 million against £169 million.
Tate & Lyle confirmed a diluted EPS growth of 4% to 24.9p compared to 25.2p and a free cash flow of fall of £81 million to £72 million from £153 million.
The company announced a significant increase in innovation, with 35% new product revenue growth, reflecting strong demand for reduced sugar offerings and clean label solutions.
Tate & Lyle highlighted its acquisition of dietary fibre business Quantum Hi-Tech Biological Co., Ltd in China, which is set to strengthen its fortification offerings.
“This acquisition significantly strengthens our fortification platform and our position as a leading global player in dietary fibres, while extending our presence in China and Asia,” said Tate & Lyle CEO Nick Hampton.
“FOS and GOS fibres are highly complementary to our existing fibre portfolio and will allow us to offer a broader range of solutions to our customers across key markets.”
The company also completed the sale of its controlling stake in Primary Products in the Americas creating Primient joint-venture.
The producer added that its strong balance sheet allowed for capacity to grow, and for a special dividend payment of £500 million delivered in May 2022, following gross cash proceeds of £1.1 billion on the sale of its Primary Products stake.
It reportedly mitigated £100 million in operational inflation through pricing, productivity, cost discipline and volume strategies, with its six-year productivity programme delivering approximately $150 million in benefits, two years ahead of schedule.
“This has been a landmark year for the company. New Tate & Lyle delivered double-digit organic revenue growth across all regions and double-digit profit growth despite significant inflation across the supply chain,” said Hampton.
“We also passed a major strategic milestone by refocusing the Group on our faster growing speciality food and beverage solutions business.”
“To do this during a global pandemic, while serving our customers, accelerating innovation and living our purpose is a testament to the resilience, ambition and agility of all my colleagues.”
The firm commented that it expected progress with adjusted pre-tax profit in line with market expectations, and revenue growth reflecting top-line momentum alongside the pricing through of higher input costs.
The company said its near-term aims were reportedly to manage continuity of supply and maintain the group’s financial strength and strategic progress.
Tate & Lyle recommended a final dividend of 12.8p for the year against a dividend payment of 30.8p in 2021.