The company said Napier Brown has returned to profit after a very poor first half. However, it remained behind expectations for the year.
“'The difficulties in the sugar market have been covered extensively, but there are signs that prices have reached their low point and will recover over the next two years,” chairman Pieter Totte said.
He added that a sale of the business would help to strengthen its balance sheet and that it is in talks with several interested parties.
The company, which supplies baking ingredients, jams and sweet bakery products, said other parts of the business performed well.
It recently bought Rainbow Dust Colours, a company that makes edible glitters and food paint, to bolster its cake decorating business in the UK and Europe.