Tate and Lyle share price is on the rise after the company announced strong half year results. The sugar and sweetener manufacturer reported a 5% increase in revenues to £1.85 billion, with underlying pre-tax profits up 10% to £205 million. This was driven by higher sales of its specialty food ingredients, which offset lower demand for bulk commodities such as corn syrup.
Tate and Lyle also announced a £100 million share buyback program, which sent the stock up 3% in early trading.
The company’s strong performance was welcomed by analysts, who have been bullish on Tate and Lyle since it spun off its commodity business last year. They see the move as a turning point for the company, which is now focused on high-margin specialty products.
With shares up nearly 20% since the start of 2017, it looks like investors are starting to agree.
Tate And Lyle Share Price
The Tate & Lyle share price has seen better days. In fact, it’s been in a bit of a slump lately.
But that doesn’t mean there isn’t still value to be had in this company. Let’s take a look at why the Tate & Lyle share price is worth watching.
For starters, Tate & Lyle is a global leader in food and beverage ingredients.
That’s an important business to be in right now given the current health crisis. People are cooking more at home and looking for ways to make their food healthier. That trend is only going to continue as we come out of the pandemic.
Tate & Lyle is well-positioned to benefit from this trend with its wide range of healthy ingredients. It also has strong relationships with some of the world’s leading food and beverage companies. That gives it a good chance of winning more business going forward.
The shares are not without risk, though. The company is facing headwinds from Brexit and the pandemic itself. It also has a lot of debt on its balance sheet.
TATE & LYLE | Food Ingredients Company | UK Dividend Stock
Tate Share Price Lse
Tate Share Price Lse
The Tate share price is down today after the company announced that it would be selling its entire stake in Tullis Russell, a UK-based paper and packaging business, to investment firm CVC Capital Partners for £246 million. This move comes as part of Tate’s ongoing strategy to focus on its core businesses and reduce debt.
While the sale will help Tate to achieve these goals, investors are clearly concerned about the future prospects for the company without Tullis Russell. Only time will tell how this decision pans out for Tate, but for now, the share price is under pressure.
Credit: www.theguardian.com
Who Bought Out Tate And Lyle?
In 2010, Tate & Lyle was acquired by American Sugar Refining, Inc. (ASR Group), the world’s largest sugar refining company. The acquisition included all of Tate & Lyle’s sugar and starch businesses, as well as its 50% share in a joint venture with DuPont that produces Splenda sweetener.
What Type of Company is Tate & Lyle?
Tate & Lyle is a British multinational agribusiness and bioethanol company headquartered in London, United Kingdom. It is the world’s largest sucralose producer. The company operates more than 30 manufacturing facilities and sells its products in over 60 countries.
Tate & Lyle is a publicly traded company listed on the London Stock Exchange (LSE: TATE) and is a constituent of the FTSE 100 Index.
The company was formed in 1921 from a merger of two sugar refiners, Henry Tate & Sons and Abram Lyle & Sons. It was first listed on the London Stock Exchange in 1930.
In 2010, it sold its sugar business to American Sugar Refining for £211 million ($326 million). In 2017, it completed the sale of its speciality food ingredients business to Associated British Foods for £1.6 billion ($2 billion).
Tate & Lyle now focuses on two main businesses: bulk ingredients and specialty food ingredients.
Its bulk ingredients business includes corn-based starches, industrial alcohols, wheat-based fibers, and other crop-based products used by customers in food, beverage, brewing, animal feed, pharmaceuticals, cosmetics, papermaking, construction materials and many other industries worldwide. The company’s specialty food ingredients include SPLENDA® Sucralose sweetener; STA-LITE® Polydextrose; PROMITOR® Dietary Fibers; TEXTura™ Dairy Blends; DOLCIA PRIMA® Allulose; CLARIA® Functional Flours; AQUARIUS™ Salt Micronization System; PUREFRUIT™ Monk Fruit Extract Sweetener; NOVASweet™ Zero Calorie Sweeteners; CAPOL™ Natural Emulsifiers and stabilizeres among others.
Conclusion
Tate & Lyle is a leading global provider of speciality food ingredients and solutions. The company shares prices fell sharply after it announced a significant drop in first-half profits. The group said that underlying pre-tax profits for the six months to the end of September were down by 27% to £153 million.
This was primarily due to lower sales in its key North American market, which was impacted by the continued challenges in the US food and beverage industry. Tate & Lyle also warned that full-year results would be below expectations as a result of these challenges.
