29 July 2015 – Tate & Lyle PLC TRADING STATEMENT

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This Trading Statement covers the period from 1 April 2015 to 30 June 2015, which is the first quarter of the financial year.

The Group’s trading performance in the first quarter was in line with our expectations and guidance for the full year remains unchanged.

Speciality Food Ingredients made an encouraging start to the year and performed ahead of the comparative period. SPLENDA® Sucralose performed solidly as we continued to pursue volume only where we see value. The consolidation of sucralose manufacturing into our facility in Alabama, USA, is progressing as planned supported by good customer engagement. Volume growth for Food Systems was ahead of the comparative period benefitting from the acquisition, last year, of Gemacom in Brazil. Volume across the balance of the Speciality Food Ingredients business was slightly behind the comparative period, with volume improving as we exited the quarter. We continued to take steps to address the impacts of the supply chain disruption experienced last year and we expect volume growth to strengthen through the remainder of the year as the additional capacity comes on-line in the second half. The volume of new products grew strongly in the quarter.

Bulk Ingredients, excluding commodities (ethanol and co-products), performed steadily and slightly ahead of the comparative period supported by solid sweetener demand. However, this was more than offset by the impact of commodities, including the continuation of low US ethanol margins.

The process of obtaining regulatory approval for the re-alignment of the Eaststarch joint venture in Europe is progressing well and we expect to complete this transaction around the end of the second quarter of the financial year.

As previously announced and disclosed in our 2015 Annual Report, American Sugar Holdings (ASR) raised a number of claims totalling in the region of £40 million relating to its acquisition of the Group’s EU Sugars business in September 2010. A trial of these proceedings was held in the Commercial Court in London in early May 2015, with the judge’s verdict expected later in the year.

Net debt was slightly lower than the position at 31 March 2015 aided by the translation effects of a stronger sterling.

Following the quarter end, on 21 July 2015, we priced a US$400 million debt private placement with notes to be issued maturing in 8, 10 and 12 years, extending the average maturity of our debt by approximately 2 years. The transaction is expected to complete on 29 October 2015.

Overall, before the impact of exchange rate movements1 and the final timing of the completion of the Eaststarch transaction, expectations for the Group’s full year performance remain unchanged from our guidance in May.

1Guidance assumed exchange rate of GBP: USD £1.00:$1.54.


A conference call will be held today at 08.00am BST, hosted by Javed Ahmed, Chief Executive and Nick Hampton, Chief Financial Officer. Participants are requested to dial in at least 10 minutes before the commencement of the call. Dial in details are as follows:

Standard International Access: +44 (0) 20 3003 2666
Password: Tate & Lyle
UK replay number: +44 (0) 20 8196 1998
Replay access PIN: 1391453
A replay of this call will be available after the end of the live call for 14 days until 11 August 2015.

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About Tate & Lyle: 
Supported by our 160-year history of ingredient innovation, we partner with customers to provide consumers with healthier and tastier choices when they eat and drink. We are proud that millions of people around the world consume products containing our ingredients every day.

Through our expertise in sweetening, fortification, and texture, we develop ingredient solutions which reduce sugar, calories, and fat, add fibre and protein, and provide texture and stability in categories including beverages, dairy, bakery, snacks, soups, sauces, and dressings.

We have more than 3,500 employees working in around 57 locations across 39 countries. Science, Solutions, Society is our brand promise and how we will achieve our purpose of Transforming Lives Through the Science of Food. By living our purpose we believe we can successfully grow our business and have a positive impact on society. We live our purpose in three ways, by supporting healthy living, building thriving communities and caring for our planet.

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 2023, Tate & Lyle revenue from continuing operations totalled £1.75 billion. For more information, please visit https://www.tateandlyle.com or follow Tate & Lyle on LinkedinX (Twitter)Facebook or YouTube