Tate & Lyle results sweeten sentiment

The price of shares in sugar producer Tate & Lyle (LON:TATE) has risen by 5% to 697p (as of 14:25 GMT) after profits before tax for the six months to 30th September climbed by 45%. The business’s sales increased by 7% with strong performances from the Food & Beverage Solutions and Sucralose divisions.

Chief executive Nick Hampton commented: “We made encouraging progress in the first half. In Food & Beverage Solutions, increased focus on pricing and mix management delivered strong growth. Profit from Primary Products was lower despite good performance from our manufacturing and supply chain network as market conditions continued to be challenging. Both divisions benefited from productivity gains and cost discipline. Cash generation was higher and during the half we took further actions to strengthen our balance sheet.

“Our priorities to sharpen the focus on our customers, accelerate portfolio development and simplify the business are driving momentum across the organisation and supporting performance. We are also proud to have established an important programme to support sustainable agriculture for US-grown corn.

“Overall, the business is in a strong financial position and delivering clear strategic progress.

“Despite market challenges, our outlook for the year ending 31 March 2020 is unchanged and we continue to expect earnings per share growth in constant currency to be broadly flat to low-single digit”.