Investors turn sour on Tate & Lyle after profits plummetComments Off on Investors turn sour on Tate & Lyle after profits plummet
Javed Ahmed, chief executive, said: “We have talked to our customers. We have had a very positive reaction [to the restructure]. Everybody understands why we are doing it.
“It has been a very challenging year for the group but with the necessary actions under way we are firmly focused on improving our performance.”
Pre-tax profits crashed 82% to £51 million in the year to March while sales dropped by 14% to £2.69 billion.
Shares in the troubled firm lost 24p, or 4%, to 575p.
Tate & Lyle restructured its business this year, shifting its focus toward higher-margin speciality food ingredients instead of commodities bulk ingredients.
The restructure followed three profit warnings over the past year.
Profits from its Splenda sweeteners business, hit by competition from cheaper Chinese rivals, suffered, falling 73% to £16 million.
Jefferies analyst Martin Deboo said: “Despite the laying of firmer foundations, growth is set to remain elusive.”