29th Jul 2015 08:20
LONDON (Alliance News) - Tate & Lyle PLC on Wednesday said that trading in the first quarter of its financial year was in line with its expectations and said that guidance for the full year remains unchanged.
Shares in Tate & Lyle were trading up 6.6% at 544.50 pence Wednesday morning, the second best performer in the FTSE 250 after Foxtons Group PLC.
The sugar and sweeteners company said that the Speciality Food Ingredients business made an encouraging start to the year and performed ahead of the comparative period, as SPLENDA Sucralose performed "solidly" in the quarter to June 30. Volume growth was slightly behind the comparative period, however, although this improved as it exited the quarter, the company said, and it expects volume to strengthen through the remainder of the year.
The Bulk Ingredients business performed steadily and slightly ahead of the comparative period, supported by solid sweetener demand, Tate & Lyle said. However, this was more than offset by the impact of commodities prices, including the continuation of low US ethanol margins.
Tate & Lyle added that the process of obtaining regulatory approval for the realignment of the Eaststarch joint venture in Europe is progressing well, and the transaction is expected to complete around the end of the second quarter.
"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 our guidance in May," Tate & Lyle said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Tate & Lyle