Sugar manufacturer Tate & Lyle has reported a 27% increase in half-year pre-tax profit to 30 September of £173m, on sales up 9% at £2.039bn.

However, the group also warned that profit growth was likely to be lower in the second-half of the year.

Sir David Rees, chairman of Tate & Lyle, said: “Overall we continue to expect further year-on-year progress in the second-half, albeit that the intensifying impact of EU sugar reform together with higher cereal prices in Europe mean that profit growth is likely to be lower than in the first-half.”

Tate & Lyle said that sales growth during the period had been led by its US food and industrial ingredients division, with profit up £32m to £87m.

Its European food and industrial ingredients division, which the company put up for sale last month, reported a profit of £40m, up £12m.