Tate & Lyle Reports 'Encouraging Start' In First Quarter
Food company Tate & Lyle has reported that it made an 'encouraging start' to the year, in a trading statement for its first financial quarter, ending 30 June 2017.
It said that both profit and volume had increased compared to the same period last year, and the company expects that it will make underlying progress in the full year.
The speciality foods division delivered strong volume growth in Asia Pacific, Latin America, Europe, the Middle East, and Africa, with more modest growth in the North American market.
Meanwhile, the company's bulk ingredients business also performed well, driven by demand for sweeteners and industrial starches, and strong manufacturing performance.
Tate & Lyle provides ingredients and solutions to the food, beverage and other industries, with operations at more than 30 facilities worldwide.
Commenting on its performance, Darren Shirley of Shore Capital stockbrokers said, "Tate & Lyle is undoubtedly a stronger and more stable business than at any other time under our coverage, and if confidence in the delivery of sustained growth in core North American volumes can build it may be looked upon positively in time.
"However, one swallow does not a summer make and whilst management is ‘cautiously optimistic’, after just one quarter of positive North American trading and with headwinds still evident, we reiterate our HOLD recommendation."
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.