Food and sweetener giant Tate & Lyle on Thursday reported 'solid sales' ahead of its annual results.
In a trading statement, the company said it has performed strongly in the year ended March 31st 2013, particularly in its speciality food ingredients division.
"In speciality food ingredients, we 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," the group said.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
However, annual sucralose volume growth will be slightly lower than the prior year despite normal run rates in the fourth quarter. 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 business transformation initiatives, the firm stated.
Bulk ingredients has achieved "good underlying performance" for sweeteners in the US and Europe. It is expected to offset the impact of costs associated with handling higher levels of aflatoxin following the severe drought in the US last year and continued challenging market conditions in ethanol.
The British company said the recent strengthening of the US dollar against sterling will result in higher net debt than the previous year.
Tate & Lyle also noted the costs of having to restart the McIntosh facility in the US, investments in global shared services and IT systems and development of a commercial and food innovation centre in Chicago. Fungus also affected corn quality caused by extremely dry and hot conditions.
Such factors impacted last month's third-quarter results which showed a fall in profits.
RD
-
Why CEOs deserve a pay riseOpinion The CEOs of big companies often come under fire for being grossly overpaid. But the truth, as per some economists, is the opposite. Do they merit a pay rise?
-
Europe prepares to stand alone as Trump turns on UkraineSupport for old military alliances is wavering in the US under Donald Trump. Europe’s leaders are rushing to fill the void. Simon Wilson reports
