Tate & Lyle PLC Full Year Results Announcement

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2017 was a year of strong progress and delivery. Read more about our full year performance in our FY17 Results Announcement.

25 May 2017

TATE & LYLE PLC

STATEMENT OF FULL YEAR RESULTS

For the year ended 31 March 2017



Strong Financial and Operational Performance


Key Headlines

  • 20%3 increase in Group adjusted PBT with good performance and increased margins in both business divisions
  • 5%3 increase in Speciality Food Ingredients adjusted operating profit to £181m:
    • 8%3 profit growth in core business, despite North America volume growth remaining challenging
    • £30m increase in Sucralose profit following actions taken to refocus business 
    • £19m decrease in Food Systems profit, with significant decline in Europe 
  • 22% increase in sales from New Products4 to US$105m
  • 32%3 increase in Bulk Ingredients adjusted operating profit to £129m:
    • Strong commercial and operational execution, good demand and robust margins 
    • £17m higher profit from Commodities
  • £40m benefit from currency translation within adjusted profit before tax
  • 85% higher Group reported PBT with improved trading, currency translation benefit and lower exceptionals
  • £121m increase in adjusted free cash flow from higher earnings, lower capex and currency translation
  • Full year dividend maintained, proposed final of 19.8p, with continued focus on building sustainable cash cover

Javed Ahmed, Chief Executive, said:

“This has been a year of strong performance. Both business divisions delivered good profit growth, with Bulk Ingredients delivering particularly good results, driven by excellent commercial and manufacturing performance. 

Speciality Food Ingredients performed well delivering profit growth and margin expansion, and continued to strengthen its focus on commercial execution, particularly in North America where volume growth remains challenging.  The innovation pipeline is healthy with New Product sales exceeding US$100 million for the first time.

Cash generation was especially pleasing with adjusted free cash flow more than three times higher than the prior year, supporting improved dividend cover and a strong balance sheet.

Overall, these results reflect strong execution of our strategy and continued progress towards our 2020 Ambition, and are a testament to the talent and commitment of our people. This has been a very encouraging year that reflects the steps we have taken, and continue to take, to build a stronger business with higher quality earnings, capable of delivering sustainable long term growth.

Turning to the outlook, we are confident that the Group will continue to make underlying progress in the 2018 financial year.”

1. Adjusted results and a number of other terms and performance measures used in this document are not directly defined within accounting standards. We have provided descriptions of the various metrics and their reconciliation to the most directly comparable measures reported in accordance with IFRS, and the calculation where relevant of any ratios, in Note 3
2. Dilutive impact of shares held for employee share schemes increased to 7.1 million shares on 464.1 million shares (2016 – 3.4 million shares on 464.3 million shares) reflecting the impact of improved financial performance on vesting assumptions
3. Percentage changes in constant currency
4. 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 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 2019, Tate & Lyle sales totalled £2.8 billion. For more information, please visit http://www.tateandlyle.com or follow Tate & Lyle on Twitter or Linkedin.