Tate & Lyle sweetens investors with growth in interim profit

Food ingredients maker Tate & Lyle posted an increase in interim profit, marking a first improvement in trading after a turbulent end to 2014.

The FTSE 250 group said that in the six months to 30 September, pre-tac profit rose 28% year-on-year to £103m, driven higher by a 28% increase in operating profit in the speciality food ingredients division.

Group sales, however, declined 2% to £1.17bn, while sales in the bulk ingredients division slid 6% year-on-year hit by lower corn costs and a decline in commodity prices in the United States for ethanol.

Tate & Lyle reiterated its full year forecast and remained upbeat about the longer term outlook, indicating it forecast the specialty food ingredients market, which is now the group’s main focus after its business overhaul, to grow steadily.

“Overall, with our change programmes progressing as planned and executional disciplines strengthening across the business, we remain on track to deliver the guidance for the full year we set out in May, and for future growth,” said group chief executive Javed Ahmed.

Tate & Lyle shares were up 2.11% to 610.08p at 0817 GMT.