UK sugar giant Tate & Lyle has said that it is off to a satisfactory start to the year, with its first-quarter profits broadly in line with a year ago.
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In a trading update released ahead of today’s (23 July) AGM, the Splenda maker said that it is on-track to make progress this year despite difficult economic conditions.
“The general deterioration in global economic conditions, particularly in the US and specifically in raw materials and energy, makes any statement about the outlook more difficult than usual,” Tate & Lyle said.
“Nevertheless, with three months of the financial year behind us and with three of the four divisions having started the year in line with our expectations, we are on-track to make progress for the year as a whole.”
Tate & Lyle’s profits have felt the negative impact of high corn prices, which have hit profits at its North American and European sweetener and ingredients businesses. However, the company said that corn prices have eased since the end of June.
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By GlobalDataMeanwhile, the group said that while its European sugar business was still facing difficulties due to changes to the EU’s sugar regime, it anticipated conditions to improve as supply and demand come into balance in the second half of the year.
