Sweeteners manufacturer Tate & Lyle Plc (TATYY.PK, TATE.L), in its trading update, said it still expects to deliver modest progress for the full year. The Group, since its February interim management statement, has continued to perform solidly and in line with its view.
In Speciality Food Ingredients, the company said it would achieve solid sales growth for the full year with the rate of volume growth in the second half slightly ahead of that achieved in the first half. Whilst sucralose volume growth has continued at more normal run rates in the fourth quarter, full-year volumes, as expected, would be slightly lower than last year. Operating profit for this unit is likely to be broadly in line with the year-ago period, as a result of the step change in fixed costs associated with its business transformation initiatives.
Within Bulk Ingredients, a good underlying performance from sweeteners in both the U.S. and Europe is anticipated to more than offset the impact of the costs associated with handling higher levels of aflatoxin following the severe drought in the U.S. in 2012 and continued challenging market conditions in U.S. ethanol.
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