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Tate & Lyle PLC on Wednesday backed its outlook for annual earnings despite a drop in revenue in the financial third quarter.
In a trading update, the London-based sweetener and food ingredients supplier said revenue in the three months to December 31 fell by 4%.
Food & Beverage Solutions revenue fell 3%, Sucralose revenue eased 2% and Primary Products Europe revenue slipped 14%.
In Food & Beverage Solutions, volume and revenue were lower due to softer consumer demand and customer de-stocking, reduced inflation pass through, and some customers phasing orders into the fourth quarter when new calendar year contracts came into effect.
Reflecting the latter, Tate & Lyle said it saw ‘good volume growth’ in January.
Sucralose delivered an improved performance, Tate & Lyle said.
For the nine months to December, revenue was 1% higher, but Tate & Lyle expects sales for the year ending March 31 to be down slightly than the prior year.
Earnings before interest, tax, depreciation and amortisation growth for the financial year is expected to grow between 7-9%, unchanged from previous guidance.
Chief Executive Nick Hampton said it was a ‘resilient performance in challenging market conditions’.
Shares in Tate & Lyle fell 1.1% to 611.50 pence each in London on Wednesday.
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