Tate & Lyle's first half reported profits dissolve

Softer market conditions in Europe and an increase in fixed costs put a dent in half year profits at sweeteners firm Tate & Lyle.

Reported profit before tax in the six months to September 30th tumbled to £172m from £241m the year before, a 28% fall on a constant currency (CC) basis. Adjusted profit before tax, however, which strips out one-off items, rose 2% on a CC basis to £179m from £177m at the halfway point of the previous year.

Sales rose 7% on a CC basis to £1,631m fro £1,540m.

"Tate & Lyle made progress in the first six months against the backdrop of a strong first half last year, softer market conditions in Europe and the step change in fixed costs associated with the restart of our SPLENDA Sucralose facility in McIntosh, Alabama and business transformation initiatives," said Javed Ahmed, Chief Executive of Tate & Lyle.

"Despite facing a number of headwinds this year, I am pleased that the business continues to perform solidly," he declared.

The interim dividend has been lifted to 7.4p from 7.1p last year.

JH