Tate & Lyle PLC (LON:TATE) shares edged higher on Thursday morning after the ingredients business posted an in-line set of half-year results.
Sales dipped 1% to £1.38bn (H1 17: £1.40bn) in the six months ended September 30, while adjusted profits were broadly flat at £166mln (H1 17: £166mln).
Higher costs held back profitability in the period, but Tate & Lyle, which sells corn syrup and other ingredients to food and drink makers, still repeated its full-year guidance.
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“We performed in line with our expectations in the first half delivering growth in adjusted profit before tax and strong cash flow despite cost inflation from materials and transport in North America, and lower profits in Commodities,” said chief executive Nick Hampton.
“Food & Beverage Solutions performed well with strong volume growth in North America, Asia Pacific and Latin America. In Primary Products, Sweeteners and Starches delivered solid underlying performance.”
The FTSE 250 group, which upped its dividend to 8.6p from 8.4p a year earlier, is in the middle of a cost efficiency programme which it expects to save £75mln over the next four years.
Shares rose 2.5% to 703.4p in early deals on Thursday.