Tate & Lyle PLC - Chairman's Annual General Meeting Statement

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At the Annual General Meeting of Tate & Lyle PLC in London today, Sir David Lees, Chairman, made the following statement on current trading:

"At the announcement of the Group's preliminary results on 8th June, I said that it would be unwise to assume any immediate improvement in market conditions, particularly as they relate to US Sugar.

Group trading in the quarter just ended has proved this caution to be justified. After a better than expected April, conditions in US sugar have worsened and losses continue at a higher level than expected due both to lower margins and reduced demand for speciality products. Profitability at Staley has also deteriorated in the last two months. Volumes were below expectation and margins have come under pressure due to reduced by-product revenues and higher input costs. Trading in the rest of the Group has been in line with plan.

The outlook for the first half of the 2001 financial year is that profit before tax and exceptional items will be below the £82 million achieved in the six months to March 2000.

Looking further forward we expect a higher level of profitability in the second half of the year. The Group will increasingly benefit from existing cost reduction and efficiency programmes, and from lower costs of raw material. This, however, will not off-set the disappointing results of the first half so that we expect the results for the full year to March 2001 to fall short of current market expectations."

About Tate & Lyle: 
Tate & Lyle is a global provider of solutions and ingredients for food, beverage and industrial markets.

Tate & Lyle operates through two global divisions, Food & Beverage Solutions and Primary Products, supported by the Innovation and Commercial Development and Global Operations teams. Food & Beverage Solutions is focused on growth by building leading positions globally in the categories of beverages, dairy, and soups, sauces and dressings. Primary Products is focused on delivering steady earnings and generating cash.

Food & Beverage Solutions consists of: Texturants, including speciality starches; Sweeteners, including low- and no-calorie sweeteners; and a Health and Wellness portfolio comprising mainly speciality fibres; and Stabilisers and Functional Systems, which are bespoke ingredient blends that ensure foods retain their structure.

Primary Products consists of high-volume sweeteners, industrial starches and fermentation products (primarily acidulants).  It also sells co-products from the corn milling process as animal nutrition.

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 2020, Tate & Lyle sales totalled £2.9 billion. For more information, please visit http://www.tateandlyle.com or follow Tate & Lyle on Twitter or Linkedin.