6th Nov 2014 07:59
LONDON (Alliance News) - Tate & Lyle PLC posted a big fall in pretax profit for the first half on Thursday, hit by falling sales across the business which were impacted by supply chain issues and the strength of sterling.
The FTSE 250-listed sugar producer said pretax profit for the first half to the end of September was down to GBP104 million from GBP173 million a year earlier, down 40% on a reported basis and down 34% in constant currencies. The group hiked its interim dividend despite the profit fall, up to 8.2 pence per share from 7.8 pence a year ago.
Sales for the group in the period dropped to GBP1.38 billion from GBP1.74 billion the year before, down 21% on a reported basis and 13% in constant currencies.
During the period, the group was hit by operational and supply chain disruption costs totalling GBP31 million, with the effect of price erosion on Splenda Sucralose put at GBP18 million.
The group said it maintains its full-year outlook, with expectations that a solid performance in its Specialty Food Ingredients business will be more than offset by a weaker performance for the Splenda Sucralose unit and additional supply chain costs.
The company said it expects adjusted pretax profit for the year to be between GBP230 million and GBP245 million.
By Sam Unsted; [email protected]; @SamUAtAlliance
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