Tate & Lyle PLC Half Year Results Announcement

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We have made a strong start to the year. Read more about our half year performance in our FY17 Results Announcement.

02 November 2017

TATE & LYLE PLC

STATEMENT OF HALF YEAR RESULTS

For the six months to 30 September 2017



Strong First Half Performance


Key Headlines

  • 13%2 increase in Group adjusted PBT with volume growth in both business divisions
  • £10m increase in Speciality Food Ingredients adjusted operating profit to £104m:

– 3% volume growth, return to growth in North America (+1%), good growth in other regions

– 4%2 profit growth after investments to grow business over longer term

  • £29m increase in Bulk Ingredients adjusted operating profit to £93m:

– 16%2 profit growth in core, driven by strong execution, good demand and firm margins

– £10m profit from Commodities (2016: loss of £3m)

  • 14% increase in sales from New Products3 to US$58m
  • £33m higher Group reported PBT with improved trading and currency benefit
  • Adjusted effective tax rate 23.5% (2016: 18.3%); rate for fiscal 2018 expected in upper end of 21-24% guided range
  • 6%2 increase in adjusted diluted earnings per share from continuing operations to 27.6p
  • Net debt at £371m, £81m lower than 31 March 2017 with stronger adjusted free cash flow
  • Interim dividend increased by 0.2p to 8.4p

Javed Ahmed, Chief Executive, said:

“We have made a strong start to the year, with good performance across the Group and higher adjusted diluted earnings per share.

Speciality Food Ingredients delivered broad-based volume growth in the core business, including North America despite market conditions in that region remaining challenging.  New Products once again delivered double digit sales growth as customers continue to seek innovative solutions to reduce sugar, calories and fat in food and drink.

Bulk Ingredients had another period of excellent performance, well ahead of a strong comparative period, with improved overall earnings resulting from disciplined commercial execution and margin expansion.

Turning to the outlook, we expect underlying adjusted profit before tax in constant currency for the full year to be modestly higher than we anticipated coming into the year driven by the strong first half performance.”

 

1  The results for the six months to 30 September 2017 have been adjusted to exclude exceptional items, net retirement benefit interest, amortisation of acquired intangible assets, the tax on those adjustments and tax items that themselves meet these definitions. A reconciliation of statutory and adjusted information is included in Note 2 to the Financial Information.

2  Percentage changes in constant currency

  3  New Products represent products in the first seven years after launch


For more information contact Tate & Lyle PLC:

Christopher Marsh, Group VP, Investor and Media Relations

Tel: +44 (0) 20 7257 2110 or Mobile: +44 (0) 7796 192 688

 

Andrew Lorenz, FTI Consulting (Media)

Tel: +44 (0) 20 3727 1323 or Mobile: +44 (0) 7775 641 807

 

 
Download the Results

About Tate & Lyle:
Tate & Lyle is a global provider of ingredients and solutions to the food, beverage and other industries, with operations in over 30 locations worldwide.

Tate & Lyle operates through two global divisions, Speciality Food Ingredients and Bulk Ingredients, supported by our Innovation and Commercial Development and Global Operations groups. The Group's strategy is to become a leading global provider of Speciality Food Ingredients through a disciplined focus on growth, and by driving Bulk Ingredients for sustained cash generation to fuel this growth.

Speciality Food Ingredients consists of three platforms: Texturants, which includes speciality starches and stabilisers; Sweeteners, which comprises nutritive sweeteners and our range of no-calorie sweeteners including SPLENDA® Sucralose; and our Health and Wellness portfolio which includes speciality fibres and our salt-reduction offering. Additionally, our Food Systems business provides a wide variety of blended ingredient solutions.

Tate & Lyle Bulk Ingredients includes bulk sweeteners, industrial starches and fermentation products (primarily acidulants). Corn co-products from both divisions are primarily sold as animal feed.

Tate & Lyle is listed on the London Stock Exchange under the symbol TATE.L. American Depositary Receipts trade under TATYY. In the year to 31 March 2017, Tate & Lyle sales totalled £2.8 billion. For more information, please visithttp://www.tateandlyle.com

SPLENDA® is a trademark of Heartland Consumer Products LLC.