Tate & Lyle issues the following trading statement for the three months ended 31 December 2017.
The Group saw volume momentum in its Speciality Food Ingredients and Bulk Ingredients divisions and remains on track to deliver progress in adjusted profit before tax in constant currency for the year ending 31 March 2018, in line with guidance.
In Speciality Food Ingredients, the core business delivered good volume growth, including a continuation of modest volume growth in North America. In Food Systems, profit improved although volume was lower. SPLENDA® Sucralose performed as anticipated with profit in line with the comparative period. In the division overall, decisions taken in the first half, particularly to invest behind the longer term development of the business, will moderate profit growth in the second half.
In Bulk Ingredients, sweetener volume in North America grew and profit growth is currently expected to be robust for the financial year ending 31 March 2018. The 2018 calendar year bulk sweetener pricing round is now substantially complete with margins broadly in line with the previous year.
This Trading Statement covers the period from 1 April 2017 to 30 June 2017, which is the first quarter of the financial year.
The Group made an encouraging start to the year with profit in constant currency ahead of the comparative period, and volume ahead in both divisions.
In core Speciality Food Ingredients:
- North America, where the overall Food and Beverage market remained soft, saw modest volume growth with firmer volume from some larger customers, and also continued to make progress in broadening its customer base.
- Asia Pacific and Latin America, and Europe, Middle East and Africa delivered strong volume growth.
In the remainder of the Speciality Food Ingredients division, Food Systems volume was in line with the comparative period and SPLENDA® Sucralose performed as expected.
- In Bulk Ingredients, the core business performed well driven by solid demand for sweeteners and industrial starches, firm US bulk sweetener margins, and continued strong manufacturing performance. In Commodities, performance was ahead of the comparative period.
Overall, we continue to expect that the Group will make underlying progress in the full year.
