Tate & Lyle chairman expects “satisfactory performance” in Q2

Tate & Lyle chairman Sir David Lees announced at the AGM that demand from food and beverage customers was stable and profits from value added ingredients continued to grow, demonstrating the resilience of this sector.

However, demand for industrial starches has remained weak.

Net debt of £1,068 million at 30 June 2009 has reduced from £1,231 million at 31 March 2009.

Free cash flow from continuing operations was more than £40 million, and there was a material benefit from exchange translation.

Capital expenditure was below depreciation, and we have maintained our strong focus on working capital management.

At Food & Industrial Ingredients, Americas, performance was marginally below the level of the comparative period, with lower income from co-product sales partially offset by the favourable impact of exchange translation.

Co-product sales remain under pressure from lower cereal prices, reduced demand from the US livestock sector and weaker US export markets.

At Food & Industrial Ingredients, Europe, profits were above the comparative period and continued to benefit from lower net corn costs.

Sugars performed ahead of expectations, but below the level of the comparative period.

As anticipated, profits from molasses were below the exceptional levels achieved in the comparative period, as global cereal prices have reduced from the levels experienced during the second half of calendar year 2008.