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Tate & Lyle makes strong start
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26/07/16

Tate & Lyle says it made a strong start to the year with profit ahead of the comparative period, adding that the encouraging start to the year supports the company’s confidence that it will continue to make progress.
Tate & Lyle makes strong start
Tate & Lyle says it made a strong start to the year with profit ahead of the comparative period in constant currency, adding that the encouraging start to the year supports the company’s confidence that it will continue to make progress, at constant currency, in the full year.
Speciality Food Ingredients performed solidly with profit for the division overall ahead of the comparative period. Excluding SPLENDA Sucralose, profit was slightly ahead of the comparative period reflecting good margin improvement. Volume was slightly lower than the comparative period with good growth in Europe, Middle East and Africa, which benefited from the acquisition of the Slovakia facility, and stabilisation in Latin America, more than offset by softer demand in North America, Asia Pacific and Food Systems.
Profit for SPLENDA Sucralose was significantly higher than the comparative period benefiting from strong volume growth from the sell-down of inventory carried into the financial year following the consolidation of the sucralose manufacturing footprint
Bulk Ingredients performed strongly with profit well ahead of the comparative period due to solid demand at the start of the US summer beverage season, robust US bulk sweetener margins, and strong manufacturing performance. In Commodities, performance was broadly in line.
The group says that it generates less than 2% of its revenues in the United Kingdom, with most revenues being US dollar based. Sterling has weakened significantly in recent weeks, the company notes, and, if current exchange rates were to prevail for the remainder of the financial year, Tate & Lyle said its reported earnings would increase strongly due to US dollar and other currency movements.

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