LONDON — Adjusted operating profit for the first quarter ended June 30 was in line with expectations for Tate & Lyle, P.L.C. even though U.S. corn prices began increasing significantly in mid-June.
“It is not clear how the current volatility in the corn price and markets that drive co-product demand and pricing will impact the business over the remainder of the year,” said Sir Peter Gershon, chairman of the London-based company, in an interim management statement July 26. “As in previous years, we will continue our strategy of maintaining full corn silos in the U.S. to secure supply against the backdrop of tight market conditions.”
Within the Specialty Food Ingredients segment, volume and sales grew compared with the first quarter of the previous year. A weaker performance from Europe offset overall volume growth in the United States and emerging markets. First-quarter sucralose volumes were lower, primarily because of difficult market conditions in Europe.
Within the Bulk Ingredients segment, operating profit was above expectations. A strong performance from liquid sweeteners in the United States and Europe more than offset challenging conditions in U.S. ethanol and more normal co-product returns, which followed strong performance in the first quarter last year.