Tate & Lyle expectations unchanged for 2020

Tate & Lyle’s trading statement for the three months ended 31 December 2019 has shown the underlying performance of the group was consistent with the first half and in line with its expectations. Our guidance for the year ending 31 March 2020 remains unchanged.

In food & beverage solutions, the quarter continued to be strong. While sales growth was slower in Asia Pacific and Latin America, Tate & Lyle saw solid growth in North America and Europe, Middle East and Africa.

With sucralose, sales and adjusted operating profit were ahead of the comparative period reflecting good operational performance and the phasing of shipments from the first half into the quarter.

The primary products division remains on track to deliver steady performance in the full year. In sweeteners and starches, profit was higher than the comparative period with strong performance in manufacturing and supply chain and good cost discipline more than offsetting lower sweetener demand from joint ventures and continued industrial starch softness.

The 2020 calendar year bulk sweetener pricing round is nearing completion with margins broadly in line with the prior year.