Tate & Lyle shares sweeten after Q1 update

Shares in FTSE 250 sugar firm Tate & Lyle (LON:TATE) rose by 1.96% to 665.40p (as of 14:25 BST) despite the firm reporting a 5% drop in revenues during the three months ended 30th June. Cost and cash control measures have been put in place and the balance sheet remains strong.

Chief executive Nick Hampton commented: “As expected, the first quarter presented many challenges and I am very proud of the way we are navigating the impact of Covid-19. We are encouraged by the improvement in demand we saw in June and the continued strategic progress we are making, with new product revenue growing 9% in the quarter. Our new business pipeline is healthy, we continue to find creative ways to use technology to support and connect with our customers, and all our manufacturing facilities remain fully operational.

“The fundamentals of our business are sound. Demand for ingredients and solutions which enable consumers to enjoy healthier and tastier food and drink is strong, and we have the portfolio of products and technical expertise to help our customers deliver on these trends.

“Looking ahead, our priorities are clear – to look after our people and communities, strengthen our relationships with customers, continue to progress our strategy and maintain our financial strength. I am confident that our future prospects remain strong”.