Supplier Tate & Lyle has posted strong results, thanks to its profitable value-added food and industrial ingredients sectors.
Interim results for the six months ended 30 September saw sales at the company rise 9%, to £2,039 m (from £1,868 m), due to a strong first half in Food & Industrial Ingredients, Americas and a good performance in Sugars, Europe from sugar trading. Pre-tax profit was 27% higher at £173m (from £136 m). But profitability in Sugars, Europe continued to be affected by lower domestic sales prices in EU sugar refining businesses due to an oversupply of sugar in the market.
Tate & Lyle said the oversupply of sugar and changes to the EU sugar regime meant profits in Food & Industrial Ingredients, Europe for the second half of the financial year ending 31 March 2007 were expected to be lower than in the same period of the previous year.