Tate & Lyle reports “encouraging” start to the year, maintains guidance
27 Jul 2017 --- Tate & Lyle has made an encouraging start to the year with profit in constant currency ahead of the comparative period, and volume ahead in both divisions. The statement covers the first quarter of the financial year, from April 1, 2017 to June 30, 2017. The company added that it expected to make underlying progress in the full year ended March 31, 2018.
In North America, volume growth in Tate & Lyle's core specialty food ingredients division was modest in a “soft” food and beverage market as the company made progress in widening its customer base.
The company reported strong volume growth in Asia Pacific and Latin America, and Europe, Middle East and Africa.
In the remainder of the division, food systems volume was in line with the comparative period and Splenda Sucralose performed as expected.
In bulk ingredients, the core business performed well driven by solid demand for sweeteners and industrial starches, firm US bulk sweetener margins, and continued strong manufacturing performance.
Commodities performance was well ahead of the comparative period.
During a Q&A for the trading update, Javed Ahmed Chief Executive of Tate & Lyle said: “As previously mentioned the company has made an encouraging start to the year, in both divisions.”
“We have continued to follow through on our strategy of higher growth categories, it is still early days, and also that contributes to broadening our customer base. We do see faster growth in food service as there is a demand for healthier products.”
“We are seeming to be on the right track but do keep in mind it’s just one quarter at the moment.”
“We have solid demand in bulk business, we saw robust demand which added to the demand we are having in the bulk business.”
“Pricing is steady in sucralose, flat year-on-year, we are contracted through the whole year, pricing has held up which is good to see and the costs have come in very nicely,” he notes.
“We are seeing encouraging expectations for the company and very much in line with the guidance that we have given.”
