The new boss at Tate & Lyle has outlined plans for 100 million US dollars (£75 million) of cost savings and to boost profits as part of an overhaul after taking up the reins last month.
Nick Hampton, who took over as chief executive from Javed Ahmed in April, outlined a three-pronged strategy to “accelerate business performance and inject more pace into the organisation”.
The former finance chief at Tate & Lyle said the group would focus growth efforts on three customer categories – drinks, dairy, and soups, sauces and dressings – while also targeting the 100 million US dollars (£75 million) of productivity savings over four years, cutting costs in the supply chain and simplifying the business.
Details of his initial plans in the top job came as the sweetener and ingredients maker reported a 13% rise in underlying pre-tax profits to £301 million for the year to March 31, despite sales falling 1% on an adjusted basis.
Bottom-line profits jumped 23% to £233 million.
But it warned that rising energy and transport costs in North America and a buoyant commodities market would weigh on earnings growth over the new financial year.
It expects growth to pick up after over following years.
Shares rose more than 6% after the figures and strategy plans.
Mr Hampton praised “another year of progress”.
On his new strategy, he said: “To accelerate business performance and inject more pace into the organisation, we are implementing three programmes to sharpen our focus on our customers, accelerate portfolio development and to simplify the business and deliver greater productivity.”
Tate will also look to make acquisitions and secure tie-ups to help boost growth.
Martin Deboo, an analyst at Jefferies, said: “We welcome the evolution but the devil will be in the detail as Tate enters a challenging year zero under the new regime.”
Prior to joining Tate & Lyle as chief financial officer in 2014, Mr Hampton spent 20 years at PepsiCo, where he held a number of senior finance and operational roles.
His predecessor, Mr Ahmed, retired from the company on April 1, ending an eight-year stint.