Tate and Lyle's future not all sweet

Tate & Lyle delivered double-digit profits growth for a third in a row today, but warned a number of factors will impact …

Tate & Lyle delivered double-digit profits growth for a third in a row today, but warned a number of factors will impact its performance this year.

The sugar and starch group said adjusted pre-tax profits were £336 million (€493.95 million) in the year to March 31st, up from £295 million (€433.68 million) a year earlier.

The improvement came despite the "headwinds" of energy cost increases, the impact of EU sugar reform and adverse currency movements.

For the current financial year, Tate said the continuing oversupply of sugar in the EU market will have a further negative impact on its sugar refining business, which has operations in London and Lisbon.

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The planned disposal of its European food and industrial ingredients division will also reduce operating profits, while a new factory in Singapore to meet demand for sweetener Sucralose will increase fixed costs.

PA