Tate & Lyle snaps up Chinese dietary fibre firm as Ukraine conflict pushes up costs
Tate & Lyle has inked an acquisition of a dietary fibre business in China as the syrup maker hopes to shrug off inflationary headwinds.
In an update on Thursday, the former sugar-making giant said it had acquired Quantum Hi-Tech, for an undisclosed sum, to expand its presence into Chinese and Asian markets.
For the year ended 31 March, the London-listed firm posted adjusted profit before tax of £145m, a 14 per cent growth on last year’s result of £134m.
The firm also saw revenue growth of 18 per cent, with revenue in the 2022 period hitting £1.3bn, compared to £1.2bn the year prior.
However, the company’s sweeteners and starches profit was down 42 per cent, with the company explaining that operational disruption had outweighed firm demand.
Chief executive, Nick Hampton, said that customer demand “remains high” while the conflict in Ukraine had “caused significant inflation in raw material, energy and logistics costs globally.”
However, the firm had been taking actions to “mitigate these pressures including supplementary pricing.”
Looking ahead to the year ending 31 March, Hampton said he expected “further progress with adjusted profit before tax in line with market expectations and revenue growth reflecting top-line momentum and the pricing through of higher input costs.”