Tate & Lyle made progress in the six months to 30 September as revenue grew 20% and adjusted operating profit increased by 29%.
The increase in revenues were the result of a shift in focus to new innovative healthier products with their new products revenue jumping 19%.
Further signalling a move away from the group’s roots in treacle and syrups, the company said the integration of the recently acquired Chinese dietary business was going well.
Tate & Lyle shares were 1.5% higher at 725p at the time of writing.
As with most companies, Tate & Lyle are subject to the inflationary pressures that may dent margins in the future, but the group actually produced some pretty healthy margin expansion in the first half after they exited a number of low-margin businesses.
“Tate & Lyle’s shift, from golden syrup and treacle to sweeteners and thickeners, looks to be a pretty sweet move right now. Revenue popped over the first half as higher prices were gobbled up by customers looking for ways to create healthier food and drink,” said Matt Britzman, Equity Analyst at Hargraves Lansdown.
“Inflation remains a significant headwind, pretty much across the board, with a cost of around £85m over the first half. but it’s being managed well, with a range of initiatives from renewed contracts, higher prices and cost cutting exercises.”