Tate & Lyle has declared its transformation is “complete” after profits rose in the wake of buying ingredients maker CP Kelco last year.
The FTSE 250 company saw earnings before interest, tax, depreciation, and amortisation (EBITDA) rise 4% to £338m in the year to 31 March.
Its revenue fell 5% as cost savings were passed on to customers, though it predicts this will now rise between 4% and 6% each year.
CP Kelco’s performance was in line with expectations, as underlying revenue rose by 3% and EBITDA grew by 9%.
Tate & Lyle has moved away from producing sugar, having sold off its sugar arm in 2010 to focus instead on ingredients that add taste, texture, and nutrients to food.
It completed the £1.4bn acquisition of CP Kelco in November in a deal that will boost its revenue by about 40%. CP Kelco is a US maker of speciality ingredients, with a particular strength in those for sweetening, mouthfeel and fortification.
“Over the last seven years, we have been executing a major strategic transformation to make Tate & Lyle a growth-focused speciality food and beverage solutions business aligned to growing, long-term consumer trends for healthier, tastier and more sustainable food and drink,” said Tate & Lyle chief executive Nick Hampton.
“With the acquisition of CP Kelco…this transformation is complete.”
Tate & Lyle’s revenue from new products increased by 9% to £1.7bn, a figure which includes sales at CP Kelco.
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