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Tate & Lyle has reported a 4% drop in third-quarter revenues as softer consumer demand and customer de-stocking hit the ingredients supplier.
In the group’s food & beverage division, volumes and revenues were lower in the three months to 31 December, compared with the same period a year ago.
Tate & Lyle said the fall also reflected a reduction in inflation being passed on and some of its customers phasing orders at the end of the year.
The sucralose division registered a 2% decline in revenues in the quarter but the group said in the trading update that this was an “improved performance”.
“The strategic repositioning of Tate & Lyle to focus on speciality food ingredients, and the investments we have made to strengthen our ingredient portfolio and solutions expertise, have positioned us well to benefit from the long-term trends towards healthier, tastier and more sustainable food and drink,” the group added.
Its EBITDA guidance for the full year remained unchanged.
Morning update
Tennent’s, Magners and Bulmers Ireland owner C&C Group is launching a €15m share buyback programme next month.
It forms part of the group’s plan to return up to €150m to shareholders over the next three fiscal years through a combination of dividends and buybacks. It follows the reinstatement of dividend payments last year.
C&C said the programme was underpinned by the board’s confidence in the medium-term outlook for the business and its strong cash generation capabilities.
The FTSE 100 opened down 0.7% to 7,667.98pts this morning.
Shares in Tate & Lyle dropped 1.8% to 607p on today’s trading update, while C&C Group rose 1.2% to 156.4p.
Alongside Tate & Lyle, early fallers include Hilton Food Group, down 1.8% to 771p, AG Barr, down 1.1% to 542p, Greencore, down 1.1% to 103.2p, and McBride, down 0.7% to 74.1p.
Yesterday in the City
The FTSE 100 fell 0.2% to 7,717.29pts on another quiet day for fmcg news on the markets.
Glanbia and Nichols were two of the day’s risers, up 3.6% to €15.73 and 6.3% to 1,035p respectively.
Deliveroo fell 2.1% to 116.6p and THG was down 1.8% to 63.4p.
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