UK: Rising corn prices boost Tate & Lyle profits
Tate & Lyle shares jumped in London this morning
Shares in Tate & Lyle climbed by more than 5% this morning (4 November) after the UK food ingredients group posted a jump in first-half profits, which were boosted by rising corn prices.
Tate & Lyle posted adjusted pre-tax profits of GBP136m (US$220.2m) for the six months to the end of September, up 21% on the year. Operating profit was up 13% at GBP170m and net profit stood at GBP73m, against GBP46m a year earlier. First-half sales rose 3.9% to GBP1.35bn.
Chief executive Javed Ahmed said Tate & Lyle had "delivered an encouraging performance" in the first half of its fiscal year.
"In addition to good operational performance and steady demand growth in a number of our markets, we benefited from strong seasonal demand and improved co-product income as corn prices rose towards the end of the summer. We have also now achieved the full benefits from the single plant sucralose manufacturing footprint," he said.
"We continue to take the necessary actions to focus, fix and grow our business as we build the platform to deliver sustainable long-term growth."
Shares in Tate & Lyle stood at 518p at 09:27 GMT, up 5.7%.
For the full statement from Tate & Lyle, click here.
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