Tate & Lyle, a leading provider of food-and-beverage ingredients, has announced a significant increase in pretax profit for the first half of fiscal 2024. This growth was driven by lower costs and robust profits from its minority holding in plant-based ingredient maker Primient.
Financial Performance
For the first half ended September 30, Tate & Lyle reported a pretax profit of £130 million ($159.7 million), compared to £68 million in the same period last year. The company also saw an increase in revenue, rising from £849 million to £857 million.
Strong Earnings
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), which excludes exceptional and other one-off items, increased by 7% to £178 million. This growth was attributed to strategic mix management, pricing, productivity improvements, and cost discipline.
Dividend Increase
The board of Tate & Lyle has declared an interim dividend of 6.2 pence per share, representing a rise of 0.8 pence compared to the same period last year.
Future Outlook
Looking ahead, the company anticipates that revenue for the year ending March 31 will slightly surpass the previous year's performance. Additionally, they expect EBITDA growth to range between 7% and 9%.
Tate & Lyle's strong financial results reflect their commitment to driving profitability while delivering high-quality food-and-beverage ingredients to their customers.
