21st Jul 2016 07:16
LONDON (Alliance News) - Food and beverage ingredients manufacturer Tate & Tyle said Thursday its first quarter April 1 to June 30 was strong and should help the company to reach its expectations for the full year.
Tate & Lyle said profit increased year-on-year in constant currency during the first quarter. The group's net debt was lower after its first half than in March, including the currency translation effects of a weaker sterling and Tate & Lyle's largely dollar-denominated debt.
The specialty food ingredients unit performed "solidly", with profit ahead year-on-year and "good margin improvement". Profit for the company's SLPENDA product, a sugar alternative, was "significantly higher" year-on-year.
Tate & Lyle said the bulk ingredients division performed well, with an increase in profit year-on-year due to solid demand at the start of the US summer drinks season. In the commodities unit, performance was broadly in line.
Tate & Lyle said volume was slightly lower year-on-year, despite good growth in Europe, Middle East, Africa, and Latin America. The manufacturer said this growth was "more than offset" by softer demand in North America and Asia.
The ingredients manufacturer said it generates less than 2% of its revenue in the UK, with most revenue being dollar-denominated. If current exchange rates prevailed for the remainder of the financial year, Tate & Lyle said reported earnings would "increase strongly" due currency movements.
Shares in Tate & Lyle were up 1.5% at 709.00 pence Thursday morning.
By Lucy Heming; [email protected]
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