Sour first half for Tate & Lyle as profits plummet by 40 per cent
SUGAR manufacturer Tate & Lyle revealed yesterday that operational and supply-chain disruption had led to a 40 per cent drop in profit in the first six months of the 2014 financial year.
Profit before tax fell from £173m to £104m during the period, while sales dropped from £1.5bn to £1.2bn, a 21 per cent decline.
The company highlighted the performance of its Splenda Sucralose brand, which saw an £18m dip in profit in the first half, attributed to “a combination of supply constraints following the extended shutdown of the Singapore facility, and price erosion”. Tate & Lyle said the global market for sucralose was “extremely competitive”, adding: “We are evaluating how best to maximise returns from this product.”
Javed Ahmed, chief executive, said: “We are firmly focused on taking the necessary steps to work through the issues we face and improve the group’s performance.”