Weak sterling is proving to be a sweet deal for Tate & Lyle

 
Helen Cahill
Follow Helen
Demand Outstrips Supply For Sugar Substitute Splenda
Tate & Lyle is best known for its sugar supplement Splenda (Source: Getty)

Splenda-maker Tate & Lyle said this morning that the weakness of sterling is benefiting the company.

If currency rates remain as they are for the rest of the year their "reported earnings would increase strongly", Tate & Lyle said.

Tate & Lyle has announced a "strong" start to the year as it benefits from a programme of restructuring, which "supports our confidence that we will continue to make progress, at constant currency, in the full year."

Tate & Lyle said: "The group generates less than two per cent of its revenues in the United Kingdom, with most revenues being US dollar based. Sterling has weakened significantly in recent weeks and, if current exchange rates were to prevail for the remainder of the financial year, our reported earnings would increase strongly due to US dollar and other currency movements."

For the 12 weeks to 30 June, the company said profits at Splenda were "significantly higher" than during the same period last year, "benefiting from strong volume growth from the sell-down of inventory carried into the financial year."

The ingredients manufacturer has been performing well overall as demand picks up at the start of the US summer beverage season.

Related articles