Bulk ingredients supplier Tate & Lyle PLC said its Q1 profits from 1 April 2016 to 30 June 2016 were up on the same period last year.
Tate & Lyle generates less than 2% of its revenues in the UK, with most of its business done in US dollars. The company said: “Sterling has weakened significantly in recent weeks and, if current exchange rates were to prevail for the remainder of the financial year, our reported earnings would increase strongly due to US dollar and other currency movements.”
The group reported a strong start to the year, with profits ahead of the same period last year in constant currency. It said: “The encouraging start to the year supports our confidence that we will continue to make progress, at constant currency, in the full year.”
Speciality food ingredients performed solidly for the group, with profit for the division ahead of the comparative period. Excluding Splenda Sucralose, profit was slightly ahead of the comparative period, reflecting good margin improvement.
It said volumes were slightly lower than the same period last year, with good growth in Europe, Middle East and Africa.
In May, Tate & Lyle posted a full year update that showed flat sales but a boost in profits, with unadjusted pre-tax profits rising from £25m to £126m.