LONDON — Revenue within the food and beverage solutions business of Tate & Lyle, PLC increased 19% in the third quarter ended Dec. 31, 2022, when compared to the previous year’s third quarter. Sucralose revenue slipped 8%, which reflected the unwind of orders phased into the first half. Overall revenue was up 16%.
“Tate & Lyle continues to perform well with food and beverage solutions delivering another strong quarter of double-digit revenue growth,” said Nick Hampton, chief executive, when London-based Tate & Lyle released a trading statement Jan. 26. “We have successfully renewed 2023 calendar year customer contracts to recover higher input costs, and, despite ongoing economic uncertainty, we continue to deliver against our strategy as a growth-focused specialty food and beverage solutions business.”
Revenue in food and beverage solutions benefited from mix management, the pricing through of input cost inflation and acquisitions. Growth continued in North America despite supply chain disruption. The regions of Europe and Asia, Middle East, Africa and Latin America delivered double-digit revenue growth, reflecting good commercial performance and mix management.
The lower sucralose revenue was expected, Mr. Hampton said in a Jan. 26 trading statement call. He added China opening up from lockdowns brought on by COVID-19 should help rebalance supply and demand for sucralose.
“So we’re substantially cycled out of the phasing of sucralose now,” Mr. Hampton said. “So we should see a return to kind of the normal level of business in the fourth quarter. It was sort of a Q2, Q3 impact.”