Tate & Lyle on track

13 Oct 2015

Tate & Lyle has issued a trading update for the six months ended 30 September 2015 ahead of the announcement of Half Year Results on Thursday 5 November 2015. The Group’s trading performance in the first half was in line with its expectations and guidance for the full year remains unchanged. Speciality Food Ingredients performed […]

Tate & Lyle on track

AXE35J Half a million pounds sterling in fifty pound notes. Image shot 2002. Exact date unknown.

Tate & Lyle has issued a trading update for the six months ended 30 September 2015 ahead of the announcement of Half Year Results on Thursday 5 November 2015.

The Group’s trading performance in the first half was in line with its expectations and guidance for the full year remains unchanged.

Speciality Food Ingredients performed encouragingly and ahead of the comparative period, the company said. As it anticipated, the Speciality Food Ingredients business returned to volume growth in the second quarter. Volumes were also ahead of the comparative period in SPLENDA Sucralose and, following the Gemacom acquisition, strongly ahead in Food Systems.

Bulk Ingredients, excluding commodities (ethanol and co-products), continued to perform steadily and slightly ahead of the comparative period supported by solid sweetener demand. Commodities, which continued to be impacted by low US ethanol margins, were significantly lower than the comparative period, and, as a result, Bulk Ingredients overall performed below the comparative period.

The annual bulk sweetener pricing round is in progress. As previously communicated, toll contracts represent around 75% of Tate & Lyle’s US corn sweetener volumes, significantly reducing the volume of its business that is re-contracted in any single year.

Overall, before the impact of exchange rate movements and the final timing of the completion of the Eaststarch transaction, expectations for the group’s full year performance remain unchanged from its guidance issued at its full year results in May 2015.