Tate and Lyle statement shows quarterly business growth
Ingredients business Tate and Lyle has released a trading statement projecting further growth for the international group, after a positive fourth quarter of 2018.
Confectionery Production recently met with the group at Gulfood Manufacturing in Dubai, with the company actively working on a number of sweetening solutions targeting the confectionery and bakery markets..
Within its sucralose operations, volume was higher benefitting from a programme to optimise production at our facility in McIntosh, Alabama, and adjusted operating profit was slightly ahead of the comparative period.
During the quarter, the business saw weaker demand in North American sweeteners leading to lower volume and adjusted operating profit was lower than the comparative period. The 2019 calendar year bulk sweetener pricing round was said to be nearing completion with margins broadly in line with the prior year.
According to the company’s latest update, its beverage solutions performed well with volume growth in line with the first half. Volume growth in North America and Asia Pacific and Latin America showed continued momentum. In Europe, Middle East and Africa, we continued to focus on mix improvement. Adjusted operating profit in the quarter was higher than the comparative period.
In terms of its outlook, the company’s for the year ending 31 March 2019, remains for growth in earnings per share in constant currency to be in a mid-single digit range, albeit towards the lower end due to energy and transport cost inflation in North America and a year of strong commodities performance in fiscal 2018.