Tate & Lyle profit increases 59%
November 4, 2010
by Jeff Gelski
LONDON — Tate & Lyle, P.L.C. had profit of £73 million ($119 million) for the six months ended Sept. 30, which marked a 59% increase from £46 million ($75 million) in the same time period of the previous year. Sales for the six months increased 4% to £1,348 million ($2,194 million) from £1,298 million ($2,113 million).
“In addition to good operational performance and steady demand growth in a number of our markets, we benefitted from strong seasonal demand and improved co-product income as corn prices rose toward the end of the summer,” said Javed Ahmed, chief executive of London-based Tate & Lyle, when six-month results were given Nov. 4.
Tate & Lyle’s Specialty Food Ingredients segment for the six-month period had adjusted operating profit of £108 million, up 32% from £82 million in the same time period of the previous year, and sales of £414 million, up 3% from £403 million. Increased sales volume, improved product mix and the full benefits of a single plant sucralose manufacturing footprint drove the increase in operating profit.
The Bulk Ingredients segment had six-month operating profit of £85 million, up 13% from £75 million in the same time period of the previous year, and six-month sales of £934 million, up 4% from £895 million.
“Average net corn costs in the half year were below the level of the comparative period,” Tate & Lyle said. “However, corn prices across the U.S. and Europe rose toward the end of the summer and, accordingly, co-product income for the period increased over the comparative period.”
Tate & Lyle experienced firm demand patterns for high-fructose corn syrup in Mexico.