Tate & Lyle has said it is well placed to ride out the economic storm despite worsening margins.

The sugar manufacturer, which makes artificial sweetener Splenda, reported a 4% increase in pre-tax profit to £128m on sales up 25% to £1.7bn for the six months to 30 September.

Splenda sales rose 11% but operating profit was slightly lower “due to changes in customer mix”.

And although energy costs increased 21% to £91m during the period T&L said it expected raw material costs to fall in the second-half.

“We continue to make good progress in growing the business in our areas of strategic focus and investment,” said CEO Iain Ferguson.

“T&L is well placed to cope with the slowing economic environment and to deliver increasingly positive cash flows and growth in our chosen markets.”