UK-based sugar and sweeteners group Tate & Lyle today (23 May) warned that it expects only modest profits from its sucralose sweetener Splenda in the year ahead.

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The alert came despite the company posting a 9% rise in full-year profits from sucralose and 14% rise in overall group earnings.


Tate & Lyle makes a fifth of its profits from Splenda and chief executive Iain Ferguson said that costs from increased production in Asia, as well as patent defence costs, would hold back profit growth this year.


Ferguson said: “We expect any profit growth in operating profit in the division in the year ending 31 March 2008 will be modest and second half year weighted.”


In January, Tate & Lyle warned that growth from its Splenda business would be limited due in part to low demand from US soft drinks manufacturers.

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Tate & Lyle is fighting a legal battle against Chinese firms for the alleged infringement of the company’s patents on the production of sucralose.


Tate & Lyle posted underlying pre-tax profits of GBP336m, up 14% on the year. Revenue rose 9% to GBP4.1bn.

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