Tate & Lyle have announced a strong set of Q1 results, with profit ahead of the same period last year in constant currency. Shares opened up 0.5% in early trading.
The Speciality Food Ingredients division saw profits ahead of the comparative period. Excluding SPLENDA, profits were slightly ahead as improving margins outweighed the effect of lower volumes. Strong volume demand in Europe, Middle East and Africa was more than outweighed by softer demand in North America and Asia Pacific.
Profits from SPLENDA Sucralose were significantly higher than a year previously, with strong volume growth following the sell down of inventory as a result of the consolidation of the sucralose manufacturing footprint.
Bulk Ingredients performed strongly with profit well ahead of the comparative period due to solid demand in the US, and strong manufacturing performance. Commodities performance was broadly in line.
Less than 2% of group revenues are generated form the UK with the majority of revenues being US dollar based. Group reported earnings would increase strongly if currency rates were to remain at current levels. It is estimated that a 1 cent change in the Sterling:US dollar exchange rate will lead to a £1.3 million change in adjusted profit before tax.
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