Tate & Lyle has reported a strong first-half performance as its group revenue is up 20% to £849 million, despite the “uncertain economic outlook.”
Having seen growth across the board, the global food provider’s operating profit saw a 29% increase from £94m last year to £137m, while its pre-tax profit also rose by 9% to £139m.
Tate & Lyle chief executive Nick Hampton said that its “strong revenue and profit performance” came as the business “continued to see robust customer demand for solutions which make healthier food and drink.”
As a result, the underlying volume across its food and beverage solutions rose by 2%, while its revenue is up 21% with double-digit organic growth across all regions and an adjusted operating profit at £113m with an increase of 26%.
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However, this comes despite the effects of “significant” inflation, which has seen “supply chain volatility in raw materials, energy and logistics costs.”
In looking to manage this, Tate & Lyle mitigated £85m of gross cost inflation through strategic mix management, pricing, productivity and cost discipline.
Hampton said that the company has worked closely with its customers “to provide visibility of increasing input costs” and that it will continue to follow this approach as it enters discussions for contract renewals in 2023.
As of March next year, the food and beverage supplier expects to continue to offset input cost inflation, with its revenue growth reflecting current top-line momentum and its adjusted profit before tax to be in line with current market expectations.
Hampton added: “The strategic re-positioning of Tate & Lyle to focus on speciality food and beverage solutions has significantly enhanced the quality and resilience of our business.
“Despite the uncertain economic outlook, we remain confident that the strength of our ingredient portfolio across attractive categories and regions, our focus on serving our customers, and the expertise and commitment of our people will enable us to successfully deliver our growth-focused strategy.”