The disappointing update from chief executive
The move towards speciality food ingredients was supposed to shield the firm from the volatile swings in sugar prices to higher margin areas. But Ahmed warned yesterday that Tate's Splenda Sucralose brand was not immune to price fluctuations.
'Expect prices in the 2015 financial year to be around 15pc lower than the current financial year,' he said, explaining negotiations for new customer contracts had been influenced by 'a dynamic market where the competitive environment has intensified, driven we believe by a significant overhang of unsold Chinese sucralose'.
He warned the rate of price decline would increase in the final quarter and this, together with softer volumes in developed markets, would dent full-year profit.
'We now expect profits for the year to be broadly in line with the comparative period,' he said. That means adjusted profit will come in around
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