Soft US drinks market hurts Tate & Lyle profits

7th Nov 2013 07:15

- Half-year profits hurt by soft US drinks market- Good growth at Speciality Food Ingredients, emerging markets- Increased interim dividend paymentFood and sweetener company Tate & Lyle said half-year profits slipped after a soft beverage season in the US overshadowed growth in Speciality Food Ingredients and progress in emerging markets.The group, which produces zero-calorie sweeteners such as Splenda and Tasteva, said pre-tax profit fell 6% to £158m for the six months to September 30th on revenue of £1.7bn, up from £1.6bn before. Adjusted earnings per share fell to 29.9p during the period from 30.5p the same time a year earlier.Among its divisions, Speciality Food Ingredients sales grew 10% while adjusted operating profit was up 3%. Within Bulk Ingredients, sales increased by 5% to £1.2bn but adjusted operating profit was 9% lower at £92m after weaker US sweetener volumes.Tate & Lyle CEO Javed Ahmed said: "While our overall results were held back by a soft beverage season in the US which affected both divisions, the business performed solidly in the first half with good sales growth in Speciality Food Ingredients supported by particularly strong volume growth in emerging markets"."As well as broadening the geographic mix of the business, we are increasingly leveraging the investments we have made to strengthen our global innovation capabilities and to collaborate more closely with our customers".The board has approved an interim dividend of 7.8p, up 5.4% on the prior year.CJ