Tate & Lyle has reported that pre-tax profits remain “marginally ahead” of its expectations – but warned of falling profits from its sucralose business.
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The UK-based sugar and ingredients group said the four-month performance for the period from 1 October to 31 January reinforced an earlier forecast that continuing operations would see a second half to 31 March that was “broadly similar to that of the first six months”.
Tate & Lyle said its Americas ingredients operations had performed well and ahead of expectations.
There had been strong performances from both value-added food ingredients and commodity products, which benefited from firmer by-product revenues, the company said, coupled with strong demand from feed compounders in the US. After a weak summer, the HFCS market improved in the period, Tate & Lyle added.
At constant exchange rates, sucralose sales had grown but profits were hit by expenses related to a patent defence and additional fixed costs incurred by a new plant in Singapore.
Within its sugars division, Tate & Lyle said its EU refineries had continued to operate within a challenging market and in the four months had performed in line with the first half year. Profits excluding transitional aid were slightly higher than the comparable period last year, the company added.
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By GlobalDataTate & Lyle said the review of its central costs following recent disposals had largely been completed and it would be providing further details in May.
