(Adds details, analyst comment)
LONDON Feb 9 Tate & Lyle, the British
food ingredients maker, has again raised its expectations for
the full financial year, citing a strong profit performance in
its third quarter.
The company, which sells corn syrup to food and drink makers
as well as other speciality ingredients, said on Thursday it
expected the "group's performance in constant currency for the
full year to be modestly ahead" of what it expected when
reporting its half-year results in November.
The company's update did not reveal any figures, but said
third-quarter profit in constant currencies was higher in both
of its main business divisions, speciality food ingredients and
Tate & Lyle in November raised its expectations for
full-year profit after a better than expected first half helped
by strong demand for soft drinks in the United States and a weak
This "continues a sequence of three confident and
expectation-raising quarters from Tate," said Jefferies
analysts, adding: "It's gratifying to see a management team who
had their reputations on the line in 2014/15 now back in the
business of apparently effortless progress."
The company's speciality food ingredients, excluding its
"food systems" and sucralose businesses, saw profit rise even as
underlying volume was flat. North American sales volume fell but
was "robust" in Europe, Middle East and Africa.
In bulk ingredients, North American sweetener sales were
The company said its 2017 bulk sweetener pricing round was
now substantially complete and was expected to deliver "modest"
margin gains in the fourth quarter.
(Reporting by Martinne Geller; Editing by Jason Neely and Mark