Tate & Lyle today (27 May) indicated it will refocus its business on value-added ingredients as it posted a drop in full-year profits.
Net profit for the 12 months to the end of March fell 77% to GBP15m (US$21.6m) after a one-off charge of GBP217m related to the mothballing of a plant in the US.
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Pre-tax profits dropped to GBP229m, down from GBP247m Tate & Lyle made a year earlier.
The company had already warned that profits would come under pressure this year as the global economic downturn forced prices down and competition in the sugar market increased.
Sales, meanwhile, dipped from GBP3.55bn to GBP3.51bn. Sales from the company’s sugar business accounted for less than one-third of its total sales and Tate & Lyle will increase its focus on its value-added ingredients business.
In a statement released this morning, Tate & Lyle chief executive Javed Ahmed said: “We are refocusing our strategy, with our speciality food ingredients business being the key focus of investment and long-term growth, as well as making a number of important changes to the group’s organisation.”
Click here for the full release from the UK sweetener and ingredients group, or click here for just-food’s post-conference call analysis.
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