Tate & Lyle Expectations Remain on Track for 2015
29 Jul 2015 --- Following the announcement of a major restructuring plan in April, which will include a complete restructuring of its sweeteners arm, British commodities company Tate & Lyle has released a trading statement for the first quarter of 2015.
Specifically, Speciality Food Ingredients made an encouraging start to the year and performed ahead of the comparative period. Splenda Sucralose performed solidly as the company continued to pursue volume only where it sees value. The consolidation of sucralose manufacturing into one facility in Alabama, USA, is progressing as planned supported by good customer engagement.
Volume growth for Food Systems was ahead of the comparative period benefitting from the acquisition, last year, of Gemacom in Brazil. Volume across the balance of the Speciality Food Ingredients business was slightly behind the comparative period, with volume improving as it exited the quarter. The company continued to take steps to address the impacts of the supply chain disruption experienced last year and expects volume growth to strengthen through the remainder of the year as the additional capacity comes on-line in the second half. The volume of new products grew strongly in the quarter.
Bulk Ingredients, excluding commodities (ethanol and co-products), performed steadily and slightly ahead of the comparative period supported by solid sweetener demand. However, this was more than offset by the impact of commodities, including the continuation of low US ethanol margins.
The process of obtaining regulatory approval for the re-alignment of the Eaststarch joint venture in Europe is progressing well and the company expects to complete this transaction around the end of the second quarter of the financial year.
Net debt was slightly lower than the position at 31 March 2015 aided by the translation effects of a stronger sterling.
