by FoodBizDaily.com staff writer
November 06 2009 - Tate & Lyle has announced a better-than-expected performance in the first half of the year, with steady food and beverage volumes and strong sucralose sales.
The British sugar refiner and sweetener group reported a 7% rise in half-year revenues to £1.82 billion, with adjusted operating profits down 1% to £148 million.
Pre-tax profits fell 59% to £50 million, including exceptional costs of £55 million, which relate to the mothballing of a sucralose plant in Alabama.
However the company said it performed slightly ahead of expectations, despite challenging conditions in a number of its markets.
In particular it achieved 15% growth in sucralose sales volumes, due to “both underlying demand growth and to customer restocking during the early part of the period”. Sucralose sales by value increased 9% in constant currency.
Sales volumes to food and beverage customers in both the US and Europe were steady at levels marginally below the comparative period, while EU Sugar markets remained tough.
T&L said in a statement: “Overall, the Group's performance, before the impact of exchange translation, remains on track to meet our expectations for the full year.
“At our Food & Industrial Ingredients businesses in the Americas and Europe, the order patterns of our food and beverage customers appear to have been re-established, albeit at slightly lower levels.
“However, global industrial starch, US ethanol and US animal feed markets remain under pressure.
“We expect continuing underlying growth in Sucralose and improved profits from Sugars in the second half.
“As usual, the outcome of the 2010 calendar year sweetener pricing rounds will influence performance in the last quarter of the financial year.
“Against this backdrop, we continue to take the actions necessary to strengthen the Group’s balance sheet, reduce our costs and ensure that we are well positioned as markets improve.”
The half year results are for the six months to 30 September 2009.
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Tate & Lyle PLC
Address: Sugar Quay Lower Thames Street London, ENG EC3R 6DQ United Kingdom
Telephone: +44-20-76266525
Fax: +44-20-76235213
About Tate & Lyle PLC
Tate & Lyle PLC (Tate & Lyle) is a manufacturer of renewable food and industrial ingredients. The Company, through its subsidiaries, is engaged in developing, manufacturing and marketing food and industrial ingredients made from renewable resources. The Company operates through four divisions: Food and Industrial Ingredients, Americas; Food and Industrial Ingredients, Europe; Sugars, and Sucralose. Tate & Lyle participates mainly in four markets: food and beverage; industrial ingredients; pharmaceutical and personal care, and animal feed. The Company holds a 16.6% interest in Tapioca Development Corporation. On January 21, 2009, the Company disposed of its interest in Orsan UK Ltd, the holding company of its Chinese monosodium glutamate business. On March 31, 2009, the Company completed the disposal of its International Sugar Trading business.