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Summary
- Tate & Lyle shares lost 6% as the company outlined mid-single digit growth in FY22
- The stock recently surpassed the pre-pandemic levels after a period of 15 months
- The company has raised the final dividend by 5.8 per cent to GBX 22 per share
Shares of Tate & Lyle Plc (LON: TATE), the London-headquartered food and beverage supplier, shed a little more than 6 per cent on Thursday, 27 May, even after the company hiked the final dividend. The stock dipped approximately 2 per cent in the opening deals, then extended the losses in the mid-morning trade.
According to the data available with the London Stock Exchange, the stock of Tate & Lyle shed as much as 6.07 per cent to a one-month low of GBX 765 from the previous closing price of GBX 814.40 apiece. The stock concluded at the intraday low levels in the closing session.
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On Friday, 28 May, recovered after a marginal slump in the opening deals. At around 0858 BST, the stock was trading at GBX 767, up 0.26 per cent from last close of GBX 765.
Tate & Lyle shares (May 2021)
Image Source: EODHD/Others
Tate & Lyle shares have recently surpassed the pre-pandemic levels after an extended period of 15 months. On a year-to-date (YTD) scale, Tate & Lyle stock stands with a gain of 13 per cent, while the shares have managed to post a return of 11 per cent over the course of the last 12 months.
In the present month itself, the shares struck a yearly closing high of GBX 815.80, and a 52-week high of GBX 821.20.
The company has raised the final dividend 5.8 per cent to GBX 22, with the effective full year dividend equating to GBX 30.8, up 4.1 per cent from the total dividend distributed in the previous fiscal.
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The company has recognised a net revenue of £2.81 billion in the financial year 2020-21, down 3 per cent from FY20 revenue of 2.88 billion. As per Tate & Lyle, segments including Food & Beverage and Sucralose are likely to see meaningful progress in the financial year ending 31 March 2022.
With the reopening of the economy on a broader level in the present year ahead, the primary products such as starches and sweeteners are expected to return to growth following a bounce back in the consumption, the company said. However, the firm has indicated a likelihood of mid-single digital growth in the adjusted operating profit in constant currency terms.
