Tate & Lyle, the FTSE 250 sweetener producer, has announced that its operating profit is expected to have risen by four per cent over the last financial year, despite a five per cent drop in revenue.
The company stated in a trading update today that performance had been in line with expectations, with cash conversion exceeding 75 per cent, as reported by .
The firm also revealed that net debt to operating profit is anticipated to be at 2.2 times in its full-year results, which is better than what the company had previously forecasted.
READ MORE: {}
Last year, Tate & Lyle invested $1.8bn (£1.4bn) in pectin and gums business CP Kelco, acquiring control of its three divisions in the US, China and Denmark.
The company stated that this acquisition would position it as a "leader in mouthfeel, a critical driver of customer solutions" and enhance its expertise across its three core platforms of sweetening, mouthfeel and fortification.
Today, Tate & Lyle reported that CP Kelco continues to perform well, with an expected increase in operating profit margin of 0.9 per cent for the full year ending in March.
Since April 1, the two companies have operated as one combined business, with expected synergy savings of $50m by the end of the next financial year.
Tate & Lyle's chief executive, Nick Hampton, expressed confidence in the medium-term growth potential of the newly formed business, despite the uncertain macroeconomic environment. He said the company is: "Focused on delivering the benefits of the combination with CP Kelco and accelerating top-line growth."
Most Read
The company stated: "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."
Previously, in October, there were rumours of a potential takeover by US private equity firm Advent International, causing Tate & Lyle's shares to surge 12 per cent in one day.
Tate & Lyle's full-year results are scheduled to be released on 22 May.