Encouraging First Half by Tate & Lyle
Tate & Lyle, the global sweeteners and food ingredients group, has reported an 18% increase in adjusted operating profit to £170m (up 13% in constant currency) for the first six months to September 30th 2010 as its specialist food ingredients and bulk ingredients businesses improved profits by 32% and 13% respectively.
Sales in the first half of the year increased by 4% to £1.35b (flat in constant currency), with volume increases offset by lower average net corn costs and lower unit margins within bulk ingredients and lower sucralose selling prices within speciality food ingredients.
Javed Ahmed, chief executive of Tate & Lyle.
Net debt has been reduced by £274m since March 31st 2010 to £540m, reflecting the sale of the EU sugar refining operations for £212m, as Tate & Lyle continues to pursue its ‘focus, fix and grow’ strategy. The sale of the remaining sugars assets is progressing to plan.
“Tate & Lyle delivered an encouraging performance in the first half of the year. In addition to good operational performance and steady demand growth in a number of our markets, we benefited from strong seasonal demand and improved co-product income as corn prices rose towards the end of the summer,” says Javed Ahmed, chief executive of Tate & Lyle. “We have also now achieved the full benefits from the single plant sucralose manufacturing footprint. We continue to take the necessary actions to focus, fix and grow our business as we build the platform to deliver sustainable long-term growth.”
