(Reuters) - British food ingredients maker Tate & Lyle (L:TATE) Plc reported a 28 percent surge in first-half profit, in a sign that performance may be stabilising following troubles last year.
The company, which sells sweeteners and other ingredients to packaged food and drink makers, said on Thursday adjusted profit before tax rose to 103 million pounds in the six months ended Sept. 30, from 80 million pounds a year earlier.
The company said its speciality food ingredients business saw an adjusted operating profit of 76 million pounds.
Speciality ingredients, such as artificial sweeteners and dietary fibres, involve special technology or patents, and therefore are much more profitable than undifferentiated bulk ingredients such as high-fructose corn syrup.
Group sales fell 2 percent to 1.17 billion pounds, while sales at its bulk ingredients division dropped 6 percent, hurt by lower corn costs and lower commodity prices in the United States for ethanol.
The company, which reaffirmed its full-year forecast, said that the longer-term outlook for the business was positive, as it expected the speciality food ingredients market to grow at mid-single digits over time.
Tate & Lyle is in the process of overhauling its business to focus on higher-margin speciality food ingredients instead of commoditised bulk ingredients, which accounts for a majority of the group's sales.
