LONDON — Revenue increased 8% both companywide and in the Food and Beverage Solutions segment for Tate & Lyle, PLC in the third quarter ended Dec. 31, 2020. Within Food and Beverage Solutions, double-digit revenue growth came in North America.
“I mean what we’re seeing in North America is a combination, really, of three things,” said Nick Hampton, chief executive, in a Jan. 28 trading statement call. “Firstly, very strong in-home consumption, benefiting sales into retail, where we’ve got some strength through our big customer relationships.
“Secondly, an improvement in out-of-home consumption, although still behind last year, but significantly, the third thing is we’re continuing to win new business because of the strength of our innovation pipeline. So in the quarter, we saw new product revenues growing double digit, which again is ahead of the first half.”
Volume in Food and Beverage Solutions was up 5%.
In the Sucralose segment, revenue declined 3%, reflecting customer mix and pricing pressure. Volume increased 1% due to the phasing of customer orders into the quarter. Lower sales of products consumed out of home, particularly beverages, had a negative impact.
In Primary Products, revenue increased 9%, and volume increased 4%. Sweetener volume rose due to operational execution, firmer demand and the phasing of some customer orders into the quarter. Industrial starch was in line with the comparative period. In commodities, co-product recoveries, including corn oil, were strong.
For the year ending March 31, Tate & Lyle expects adjusted profit before tax in constant currency to be modestly ahead of the prior fiscal year.
“So while the operating environment remains uncertain, the business continues to show great resilience and agility, with strong operational execution, customer service, and connectivity and cost discipline,” Mr. Hampton said. “We are successfully progressing our strategy, and as the world emerges from the pandemic, our portfolio and capabilities are well placed to meet increasing demand from consumers, customers and governments for healthier and tastier food and drink.”