Tate & Lyle Says Demand Improved In June As Venues Opened Up After Lockdowns
Food ingredients maker Tate & Lyle Plc said that demand improved in June compared to the previous two months, as coronavirus restrictions eased and more restaurants, bars, cinemas and other public facilities opened.
Tate & Lyle said demand started to recover sequentially during the quarter as some U.S. states began to ease lockdown restrictions.
Remaining cautious, the company said the full extent of the pandemic's impact still remained unclear.
Tate & Lyle's tone is in line with the world's largest soda maker Coca-Cola Co, which said earlier this week demand for its beverages was improving after reporting a 28% slump in sales in the "most challenging" quarter of the year.
The British company, one of the world's biggest producers of sweeteners such as high fructose corn syrup, posted a 5% drop year-on-year in revenue growth for the three months ended June 30.
Revenue at its primary products division, which makes high-volume sweeteners and industrial starches, fell 9% to £420 million (€461 million), with North American bulk sweetener volume 12% lower, reflecting fewer people eating outside their homes.
Navigating The Impact
“As expected, the first quarter presented many challenges and I am very proud of the way we are navigating the impact of COVID-19," commented Nick Hampton, chief executive.
"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."