Tate & Lyle FY profit rises but April 'mixed' amid Covid lockdowns

Tate & Lyle reported a rise in full-year profit and revenue on Thursday but said trading in April was mixed due to Covid-19 lockdowns in the US and Europe.

In the year to the end of March 2020, adjusted pre-tax profit was up 4% to £331m, with revenue 2% higher at £2.9bn.

The final dividend was unchanged at 20.8p, taking the full-year dividend to 29.6p, up 0.7%.

Chief executive Nick Hampton said: "This has been another year of consistent delivery. We made good progress executing our strategy with strong revenue and profit growth from Food & Beverage Solutions and profit growth from Primary Products in more challenging markets.

"Food & Beverage Solutions delivered revenue growth in each region with revenue from New Products 15% higher."

The company said in an update earlier in May that trading in March had shown "limited impact" from the Covid-19 pandemic. However, it said on Thursday that lockdowns in many countries throughout April, mainly in its largest markets of the US and Europe, led to significant changes in demand patterns for its products and a mixed performance overall.

Tate said Food & Beverage Solutions and Sucralose continued to perform well, with volume for Food & Beverage Solutions in line with the same period a year ago and Sucralose 18% higher due to the phasing of customer orders.

"Early in the month, demand was strong for ingredients used in packaged and shelf-stable foods as consumers in North America and Europe filled their pantries for consumption at home. As the month progressed, this was offset by lower demand for products consumed out-of-home, such as in the food service sector in North America," it said.

Volume in Primary Products was "significantly" dented by the first full month of lockdown in the US, Tate said. Bulk sweetener volume declined 26% due to reduced out-of-home consumption as bars, cinemas, restaurants and sporting events were shut or cancelled. Meanwhile, industrial starch volume was 9% lower due to lower demand for paper and packaging following the closure of schools, offices and a drop in economic activity.