Speciality ingredient specialist Tate & Lyle has reported a dip in revenue despite high volumes as it has passed cost savings onto customers.
In a trading update issued today ahead of its AGM, the company, which has been listed on the London Stock Exchange since 1938, said that its food and beverage solutions volume was ahead of the comparative period with growth expected to accelerate in 2025.
However, this failed to translate into revenue growth, which Tate & Lyle said was due to its decision to pass lower costs onto consumers.
One exception to this was the company’s sales of artificial sweetener Sucralose, which saw its revenue increase.
Group earnings before interest, tax, depreciation and amortisation (EBITDA) was also ahead of the comparative period.
Chief executive Nick Hampton said: “We have made a good start to the new financial year with trading in line with our expectations.
“It’s encouraging to see volume momentum across the business, and we continue to expect volume growth to accelerate as the 2025 financial year progresses.
“Planning for the integration of Tate & Lyle and CP Kelco is progressing well, with both organisations excited about the opportunity to deliver significantly greater value for customers and the growth potential of the combined business. We look forward to the future with confidence.”
Last month Tate & Lyle completed the £1.4bn acquisition of CP Kelco, a US-based peer, sending the company’s stock falling as analysts expressed confusion over the move.
Tate and Lyle said it expected the acquisition to generate revenue synergies of up to 10 per cent of CP Kelco’s revenue over the medium term and targeted run-rate cost synergies of at least $50m (£40m) by the end of the second full financial year.
This week the company announced it had repurchased 205,374 of its ordinary shares for an average price of £6.42, as part of its share buyback programme of up to £215m.