Risk management tools benefiting from volatile commodity markets
bring strong gains to US ingredients giant ADM in the latest
quarter, but profit for starch and sweeteners impacted by higher
US-based Hershey yesterday posted a Q4 operating profit drop of 65
per cent, as high commodity costs, restructuring charges and
competitive US market conditions continue to dog the confectionery
The Sudzucker group has reported a 18.3 per cent increase in sales
for the first nine months of its year thanks to special products
and fruit preparations, while sugar was responsible for a big drop
in operating profit.
An increased demand for natural ingredients has led to a 23 per
cent growth in Frutarom's sales for the third quarter, but profit
is down because of rising raw material costs and the impact of
Tate & Lyle has taken new measures to remove itself from
volatile commodity markets and refocus on value-added ingredients,
with a plan to sell its Mexican sugar business, Grupo Industrial
Azucarero de Occidente.
Frutarom has announced an increase in sales in its second quarter
results issued this morning, which it says is down to reaping the
rewards of a strategy of buying smaller companies - but work is
needed to boost its profit margins.