Tate & Lyle sees FY better than expected after solid Q3

Tate & Lyle said on Thursday that it now expects full-year trading to be modestly ahead of its previous expectations following a solid performance in the third quarter.

In a trading statement for the three months to the end of December, Tate said the group continued to perform strongly, with profit in constant currency ahead of the comparative period in both divisions. Speciality Food Ingredients performed in line with expectations while profit from the Bulk Ingredients business was ahead of the company’s expectations.

In Speciality Food Ingredients, excluding Food Systems and Splenda Sucralose, profit was ahead of the previous year thanks to good commercial execution and a strong manufacturing performance. Meanwhile, underlying volume was broadly in line with the comparative period.

In North America, demand continued to be soft with volume lower, as in the first half, while in Europe, Middle East and Africa, underlying volume growth was robust.

In Latin America, strong volume growth largely offset weaker demand in Asia Pacific. Profit in Food Systems continued to be held back by lower volume and Splenda Sucralose profit was ahead of the comparative period as production was consolidated to a single facility.

In Bulk Ingredients, North American sweetener volume remained robust and Tate said the calendar 2017 bulk sweetener pricing round is now substantially complete and expected to deliver modest margin gains in the fourth quarter.

In Commodities, the performance was “satisfactory” and somewhat ahead of the group’s expectations.