British-based multinational agribusiness Tate & Lylesays it has performed “in line with expectations” after its half-year results show flat profit growth with sales decreasing by 1 percent to £1.38 billion (US$1.81bn). The food ingredients maker fought off inflationary headwinds to deliver growth in adjusted profit before tax and strong cash flow despite cost inflation from materials.

Key highlights for the six months to 30 September 2018 include Food & Beverage Solutions accelerating volume growth, including a 3 percent increase in North America.

With a strengthened leadership in place, the company says it successfully managed inflationary headwinds. It reports a 2 percent increase in adjusted profit before tax and a 3 percent increase in Food & Beverage Solutions profit to £77 million (US$101mn).

Volume was up 3 percent in North America and 16 percent in Asia Pacific and Latin America, while there was a 6 percent increase in sales of new products.

Primary Products profit was 6 percent lower at £85 million (US$111 million), while there was a 1 percent increase in Sucralose profit to £27 million (US$35.4 million). Tate & Lyle says its Sweeteners and Starches profit is in line with the comparative period.

The company’s half-year results come shortly after new scientific studies were presented at theInternational Sweeteners Association’s (ISA) Conference in London earlier this week, supporting current evidence that low-calorie sweeteners can aid in sugar reduction, cravings management and weight loss.

The latest research on low-calorie sweeteners’ use, benefits, and role in the diet was discussed at the 3rd ISA conference themed: “The science behind low-calorie sweeteners: wher evidence meets policy.”

In May, Tate & Lyle PLC announced it had entered into an agreement to acquire a 15 percent equity holding in Sweet Green Fields, one of the largest privately held, fully integrated global stevia ingredient firms.

Tate & Lyle also says there is early progress on its “Sharpen, Accelerate, Simplify” programs to accelerate business performance and actions are underway to deliver US$100m productivity benefits over four years.

“We performed in line with our expectations in the first half delivering growth in adjusted profit before tax and strong cash flow despite cost inflation from materials and transport in North America, and lower profits in Commodities,” says Chief Executive, Nick Hampton.

“Food & Beverage Solutions performed well with strong volume growth in North America, Asia Pacific and Latin America. In Primary Products, Sweeteners and Starches delivered solid underlying performance.”

“The three programs we announced in May 2018 to sharpen the focus on our customers, accelerate portfolio development and simplify the business are progressing well. With our clear direction, strong financial position and a strengthened leadership team driving greater pace and agility across the organization, we remain well-placed to realize the growth potential of our business.”

Commodities profit was £5 million (US$6.5mn) lower following an exceptionally strong comparative period, while there is a 5 percent increase in earnings per share benefiting from lower finance costs and lower adjusted effective tax rate. The Interim dividend increased by 0.2p to 8.6p per share; up 2.4 percent.

The outlook for the year ending March 31, 2019, remains unchanged.