Tate & Lyle performance in line with expectations30 Jul 2015
Tate & Lyle has issued a trading statement covering the period from 1 April 2015 to 30 June 2015, which is the first quarter of the financial year. The company said that its trading performance in the first quarter was in line with its expectations and guidance for the full year remains unchanged. Speciality Food […]
The company said that its trading performance in the first quarter was in line with its expectations and guidance for the full year remains unchanged.
Speciality Food Ingredients made an encouraging start to the year, the company said, and performed ahead of the comparative period. SPLENDA Sucralose performed solidly as Tate & Lyle continued to pursue volume only where it sees value. The consolidation of sucralose manufacturing into its facility in Alabama, USA, is progressing as planned supported by good customer engagement. Volume growth for Food Systems was ahead of the comparative period benefitting from the acquisition, last year, of Gemacom in Brazil. Volume across the balance of the Speciality Food Ingredients business was slightly behind the comparative period, with volume improving as the company exited the quarter. Tate & Lyle said that it continued to take steps to address the impacts of the supply chain disruption experienced last year and expects volume growth to strengthen through the remainder of the year as the additional capacity comes on-line in the second half. The volume of new products grew strongly in the quarter.
Bulk Ingredients, excluding commodities (ethanol and co-products), performed steadily and slightly ahead of the comparative period supported by solid sweetener demand. However, this was more than offset by the impact of commodities, including the continuation of low US ethanol margins.
The process of obtaining regulatory approval for the re-alignment of the Eaststarch joint venture in Europe is progressing well and Tate & Lyle expects to complete this transaction around the end of the second quarter of the financial year.
Overall, the company said, before the impact of exchange rate movements and the final timing of the completion of the Eaststarch transaction, expectations for its full year performance remain unchanged from its guidance in May.
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