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Tate & Lyle jumps on better profit and ingredients firm sale

Published 23/05/2024, 10:19
© Reuters.  Tate & Lyle jumps on better profit and ingredients firm sale
TATE
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Proactive Investors - Tate & Lyle PLC (LON:TATE) climbed over 4% on Thursday after announcing stronger profit over the last year and the sale of its remaining stake in Primient.

Pre-tax profit climbed 18% to £287 million in the year to March, the food and beverage firm said on Thursday, despite a 2% fall in revenue to £1.65 billion on softer demand.

Tate & Lyle also announced the sale of its remaining 49.7% stake in ingredients producer Primient for US$350 million (£275 million).

“The sale of our remaining stake in Primient represents an important milestone for our business,” chief executive Nick Hampton said.

“With this sale, the transformation of Tate & Lyle into a fully-focused speciality food and beverage solutions business is complete.”

A final dividend of 12.9p per share was declared, taking payments to 19.1p for the full year, up 3.2%.

Tate & Lyle guided for pre-tax earnings to increase between 4% and 7% over the coming year, as a focus on margins over volume growth continues.

Shares climbed 4.8% to 709.53p.

Read more on Proactive Investors UK

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