Tate & Lyle says CP Kelco integration on track, results in line
Food ingredients group said it expects to deliver full-year results in line with guidance, with the recently acquired CP Kelco division delivering margin improvements ahead of expectations.
Tate & Lyle, which in November completed a deal to merger with pectin, gums and ingredients firm CP Kelco, said the integration of the two companies is on track, with the enlarged group operating as a combined business from the start of April.
When excluding CP Kelco, revenues for the 12 months to 31 March were down 5% on the previous year while EBITDA grew by 4%.
CP Kelco is said to have traded "well" with an increase in EBITDA margin of more than 90 basis points for the full financial year, ahead of the company's acquisition plan which "further reinforces our confidence in its phased margin recovery", it said.
The company said it was confident in its targeted run-rate cost synergies of $50m by the end of the financial year ending 2027, with more than 50% of these to be delivered in the current financial year.
"Notwithstanding the uncertain macroeconomic environment, we are confident in the medium-term growth potential of the business we have created and are focused on delivering the benefits of the combination with CP Kelco and accelerating topline growth," said chief executive Nick Hampton.
"Our confidence in the growth opportunity ahead has been strengthened by the positive engagement we are seeing from customers in both our expanded portfolio and capabilities."
Shares were up 3.2%at 519.76p by 0820 GMT.
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.