TATE & LYLE said yesterday it expects another year of profitable growth, after posting a four per cent rise in profits last year, helped in part by a one-off payment after winning a legal dispute.
The ingredients manufacturer said adjusted profit before tax rose four per cent to £329m compared with £318m the previous year on sales up five per cent to £3.3bn.
Tate & Lyle makes speciality ingredients including sweeteners, which are used in products such as cereals and desserts and food stabilisers used to thicken sauces such as gravies or soups. Sales in the unit rose seven per cent to £947m over the year, with Tate & Lyle expecting further growth this year thanks to stronger demand for healthier and convenience foods.
The company’s bulk ingredients division, which makes products such as liquid sweeteners and industrial starches and animal feed, said sales rose five per cent to £2.3bn on strong sales in countries such as Mexico.
“Despite having entered the year facing a number of headwinds we have made progress,” chief executive Javed Ahmed said.
However, he warned that the costs of developing its new shared service centre and IT platform would increase more than 50 per cent to about £120m to £135m.