Tate & Lyle has issued an update for the year ending 31 March 2013 ahead of the announcement of its full year results on 30 May 2013.
Since the interim management statement in February, the company said that it has continued to perform solidly and in line with its expectations. Tate & Lyle continues to expect to deliver modest progress for the full financial year.
In Speciality Food Ingredients, Tate & Lyle said that it will achieve solid sales growth for the full year with the rate of volume growth in the second half slightly ahead of that achieved during the first half. While sucralose volume growth has continued at more normal run rates in the fourth quarter, volumes for the full year, as anticipated, will be slightly lower than the prior year. Operating profit in this division will be broadly in line with last year as a result of the step change in fixed costs associated with Tate & Lyle’s business transformation initiatives.
Within Bulk Ingredients, the company said that a good underlying performance from sweeteners in both the US and Europe is expected to more than offset the impact of the costs associated with handling higher levels of aflatoxin following the severe drought in the US in 2012 and continued challenging market conditions in US ethanol.
