Tate & Lyle (Tate) share price falls despite profits rising 85 per cent following drop in the value of the pound

 
Shruti Tripathi Chopra
Follow Shruti
Demand Outstrips Supply For Sugar Substitute Splenda
Splenda maker Tate & Lyle's The ingredient maker's profit before tax rose 85 per cent (Source: Getty)

Splenda maker Tate & Lyle's shares fell nearly three per cent this morning despite a rise in annual pre-tax profits.

Figures

The ingredient maker's profit before tax rose 85 per cent and sales totalled £2.4bn in the year to 31 March 2016.

Tate & Lyle's adjusted profit before tax received a £40m boost from the drop in the value of the pound. Excluding the impact of currency, adjusted profit before tax rose 20 per cent to £271m.

The group enjoyed an eight per cent profit growth in its core business "despite North America volume growth remaining challenging" while adjusted profits for its speciality food ingredients division rose five per cent to £181m.

What Tate & Lyle said:

Javed Ahmed, chief executive, said: “This has been a year of strong performance. Both business divisions delivered good profit growth, with Bulk Ingredients delivering particularly good results, driven by excellent commercial and manufacturing performance.

"Overall, these results reflect strong execution of our strategy and continued progress towards our 2020 Ambition, and are a testament to the talent and commitment of our people. This has been a very encouraging year that reflects the steps we have taken, and continue to take, to build a stronger business with higher quality earnings, capable of delivering sustainable long term growth."

Related articles