Tate & Lyle has reported a dip in sales despite positive volume momentum across the business.

For the three months to 30 June 2024, the manufacturer’s food and beverage volumes were up , however sales were lower, which Tate & Lyle said reflected the pass through of cost deflation.

Tate & Lyle chief executive Nick Hampton said: “We have made a good start to the new financial year with trading in line with our expectations.

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“It’s encouraging to see volume momentum across the business, and we continue to expect volume growth to accelerate as the 2025 financial year progresses.”

For the year ending 31 March 2025, the group’s outlook is unchanged as it expects to deliver sales slightly lower than the prior year and EBITDA growth of between 4% and 7%.

It comes as Tate & Lyle has entered a £1.4bn ($1.8bn) agreement to purchase US ingredients firm CP Kelco and its subsidiaries.

Hampton added: “Planning for the integration of Tate & Lyle and CP Kelco is progressing well with both organisations excited about the opportunity to deliver significantly greater value for customers and the growth potential of the combined business. We look forward to the future with confidence.”