7th Feb 2019 08:14
LONDON (Alliance News) - Tate & Lyle PLC on Thursday warned earnings for its current year will be towards the lower end of guidance due to energy and transport cost inflation in North America.
The FTSE 250 food ingredients maker reiterated its earnings per share guidance for its year ending March of mid-single digit range growth.
However, Tate & Lyle expects it to be towards the lower end of the guided range.
For the three months to the end of 2018, its third quarter, the firm said adjusted profit before tax in constant currency was ahead of the comparative period.
The Food & Beverage Solutions unit performed well, with volume growth in line with the first half, Tate & Lyle said. The unit's adjusted operating profit was higher than a year ago.
In Sucralose, third quarter operating profit was "slightly ahead of the comparative period" benefiting from a programme to optimise production in Alabama.
Finally in Primary Products, Tate & Lyle saw weaker demand for North American sweeteners leading to lower volume. Adjusted operating profit was consequently lower than the comparative period.
Tate & Lyle shares were trading down 1.6% at 665.60 pence each on Thursday.
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