Tate & Lyle’s profits edged up in the first half of the year, despite sales across its food and beverage solutions business taking a hit.

In the six months to 30 September 2024, the British ingredients company’s EBITDA increase 6% to £188m, with profit edging up 3% for its food and beverage solutions to £157m.

However, group sales were down 7% to £775m and food and beverage solutions sales declined 8% to £631m, which Tate & Lyle said was partially offset by a strong performance in Sucralose, which saw sales jump 17% to £99m.

In Europe specifically, sales were 23% lower to £130m, which the ingredients firm said reflected the pricing of significant input cost deflation and price investment.

Sales volumes in Europe was broadly in line with last year, with stronger demand in beverages and soups, sauces and dressings, mitigated by weaker infant nutrition demand.

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Despite the decline in sales, across the group, food and beverage solutions continued to drive innovation, which accounted for 17% of the division’s sales.

The company expects volume growth to accelerate through the year, and with input costs “now more stable”. It expects the impact of input cost deflation to reduce in the second half.

Tate & Lyle’s full-year outlook remains unchanged, as it expects to deliver sales slightly lower than the prior year and profit growth of between 4% and 7%.

Tate & Lyle chief executive Nick Hampton said: “It has been a momentous six months for Tate & Lyle. The business has continued to perform well delivering a return to volume growth, continued strong profit growth and excellent cash generation.”

“Since the announcement of our combination with CP Kelco in June, we have seen a very positive response from our customers who recognise the much broader innovation and solutions capabilities we will offer.

“A joint team has developed a comprehensive integration plan which is focused on three priorities – serving our customers, clarity for our people and delivering performance. The combination with CP Kelco will significantly strengthen Tate & Lyle’s position at the centre of the future of food.”

In June, Tate & Lyle entered a £1.4bn ($1.8bn) agreement to purchase US ingredients firm CP Kelco and its subsidiaries.