Energy, Transport Costs Weigh On Tate & Lyle Guidance
British food ingredients maker Tate & Lyle said on Thursday full-year earnings were likely to be at the lower end of its forecast "mid-single digit" range for percentage growth, hurt by higher energy and transport costs in North America.
The company, which sells corn syrup and other ingredients to food and drink makers, also cited strong commodities markets as a factor in the results.
‘Food & Beverage Solutions performed well with volume growth in line with the first half,’ the company said. ‘Volume growth in North America and Asia Pacific and Latin America showed continued momentum. In Europe, Middle East and Africa, we continued to focus on mix improvement.
‘Adjusted operating profit in the quarter was higher than the comparative period.’
Quarterly pretax profit in constant currency, was ahead of last year, boosted by volume growth in its food & beverage solutions division, it said.