UK-based ingredients manufacturer Tate & Lyle may turn to acquisitions to accelerate its growth after reporting higher half-year sales and profits.
Adjusted profit before tax was GBP180m (US$247.8m) for the six months to 30 September, a 38% jump year-on-year. Adjusted operating profit was GBP194m, up from GBP170m in 2010. Sales rose 19% to GBP1.54bn.
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Speaking on a conference call to analysts today, CFO Tim Lodge said acquisitions may be a way to speed up growth, should the right opportunity present itself.
“If the right acquisitions are there, it would be nice to accelerate our [growth] strategy through acquisitions,” he said. “They would need to be essentially in line with our strategy or we wouldn’t be interested.”
The company said its speciality food ingredients division will deliver good profit growth for the full year thanks to higher volumes and sales growth across all product categories, while bulk ingredients will remain buoyant thanks to firm demand for corn sugars in the US and Mexico.
Chief executive Javed Ahmed described the results as an “encouraging performance” adding “Overall, we expect the group to deliver a good performance for the full year as a result of a solid operational performance and lower net interest expense.”
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By GlobalDataHowever, Ahmed sounded a note of caution in the conference call about uncertainty in the eurozone.
“Everybody’s concerned in terms of what’s happening in the eurozone at the moment. The biggest challenge for this economy right now, from our point of view, is going to be how to maintain growth”, he said.
