Tate & Lyle's Q1 in line, full-year guidance unchanged

29th Jul 2015 09:26

(ShareCast News) - Food ingredients producer Tate & Lyle said its performance during the first quarter of the year was in line with expectations driven by encouraging results from its speciality food ingredients business.Stronger performance in its core businesses offset weakness in commodity bulk ingredients during the period ended 30 June 2015, with US ethanol margins remaining low.The company added it continues to take steps to address the impacts of last year's supply disruption in its speciality food ingredients department.Its food systems division saw volume growth ahead of same time last year driven by the acquisition of Gemacom in Brazil."Overall, before the impact of exchange rate movements and the final timing of the completion of the Eaststarch transaction, expectations for the group's full year performance remain unchanged from our guidance in May," the company said.Shore Capital analysts reiterated their 'hold' recommendation and 511p price target and said they do not expect "much share movement" following the update.Shares rose 3.42% to 528.5p on Wednesday at 08:45.