UK-based food ingredients firm Tate & Lyle has announced that it expects to deliver modest progress for the full financial year ending 31 March 2013.
Ahead of the announcement of the full year results on 30 May 2013, the company has announced the update for the full financial year.
Tate & Lyle noted that since the interim management statement in February, it has continued to experience solid growth, in line with the expectations.
In the Speciality Food Ingredients division, the company expects to achieve strong sales growth for the full year with the rate of volume growth in the second half marginally higher than that achieved during the first half.
Sucralose volume growth has continued at more normal run rates in the fourth quarter; however, volumes for the full year are expected to be slightly lower than the prior year. In addition, operating profit in this segment is expected to be in line with last year due to the step change in fixed costs associated with the company's business transformation initiatives.
In the Bulk Ingredients division, a strong underlying performance from sweeteners in both the US and Europe is likely to more than offset the impact of the costs. These costs were associated with handling higher levels of aflatoxin, after the severe drought in the US in 2012 and continued challenging market conditions in US ethanol.
As a result of the recent strengthening of the US dollar against sterling, the net debt is expected to be higher than previously anticipated due to the translation of US dollar denominated debt. Net debt at 31 March 2013 is now expected to be slightly higher than the level reported at the end of last year.
