Profits Fall at Tate & Lyle
Tate & Lyle, the global provider of ingredients and sweeteners to the food, beverage and other industries, has reported a 4% decline in adjusted operating profit to £187 million with adjusted profit before tax down down 3% to £173 million for the six months to 30 September 2013 on sales up 7% to £1.74 billion. On a statutory basis, profit before tax decreased by £10 million to £158 million.
While the overall results for the group were held back by a soft beverage season in the US which reduced demand for sweeteners across both divisions, Tate & Lyle performed solidly in the first half with good sales growth in its Speciality Food Ingredients business supported by particularly strong volume growth in emerging markets.
Speciality Food Ingredients sales rose by 10% with adjusted operating profit up 3% to £112 million. The Bulk Ingredients division saw adjusted operating profit fall 9% to £92 million as a result of lower US sweetener volumes. The group balance sheet remains strong with £143 million reduction in net debt to £336 million, driven by the strong free cash flow generated during the period.
Javed Ahmed, chief executive of Tate & Lyle, comments: “While our overall results were held back by a soft beverage season in the US which affected both divisions, the business performed solidly in the first half with good sales growth in Speciality Food Ingredients supported by particularly strong volume growth in emerging markets. We continue to be pleased with the progress we are making in delivering our long-term strategy. As well as broadening the geographic mix of the business, we are increasingly leveraging the investments we have made to strengthen our global innovation capabilities and to collaborate more closely with our customers.”
