Tate & Lyle has warned on profit in its half year trading update, after bad weather in the US hits stock.
The food group announced it had experienced a “disappointing” performance over the past six months, down to supply constraints and competition in Splenda Sucralose.
It said it expected profit before tax for the first half of the year to be in the range of £95m to £105m. Full year profits before tax are predicted to be between £230m to £245m.
Javed Ahmed, chief executive said: “The group’s performance in the first half has been extremely disappointing as we have faced significant manufacturing and supply chain challenges, and intense competition in Splenda Sucralose.
“I have instigated an immediate review of our planning and supply chain processes, led by our chief financial officer, to ensure they fully reflect the needs of the business going forward. Despite current operational challenges, I continue to be encouraged by our robust innovation pipeline, the strength of the Speciality Food Ingredients business excluding Splenda Sucralose, and continued growth in emerging markets.
“We remain firmly focused on taking the necessary actions to improve the group’s performance and to deliver on our strategy.”
Despite a difficult first half, the company said it will be set to launch two new products in the next few weeks. It also plans to accelerate delivery of its speciality food ingredients-focused strategy.
Half year results will be announced on Thursday 6 November.