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 FY19 Results Announcement.

08 November 2018

TATE & LYLE PLC

STATEMENT OF HALF YEAR RESULTS

For the six months to 30 September 2018

 

Key Highlights

  • Overall performance in line with expectations
    • Food & Beverage Solutions accelerating volume growth, including +3% in North America 
    • Primary Products profits lower due to Commodities 
    • Inflationary headwinds proactively managed  
  • Full year guidance unchanged
  • Strengthened leadership team in place
  • Early progress on ‘Sharpen, Accelerate, Simplify’ programmes to accelerate business performance
  • Actions underway to deliver US$100m productivity benefits over four years; cost estimated at up to US$40m

Financial Highlights

  • 2% increase3 in adjusted profit before tax  
  • 3% increase in Food & Beverage Solutions profit4 to £77m
    • Volume up 3% in North America and 16% in Asia Pacific and Latin America
    • 6% increase3 in sales of New Products
  • 1% increase in Sucralose profit4 to £27m
  • Primary Products profit4 6% lower at £85m
    • Sweeteners and Starches profit in line with the comparative period
    • Commodities profit £5m lower following exceptionally strong comparative period
  • 5% increase in earnings per share5 benefitting from lower finance costs and lower adjusted effective tax rate
  • Group statutory profit before tax 30% lower due to net exceptional costs of £47m (predominantly non-cash)
  • Adjusted free cash flow £1m higher at £152m, driving net debt £55m lower
  • Interim dividend increased by 0.2p to 8.6p per share; up 2.4%

Nick Hampton, Chief Executive, said:

“We performed in line with our expectations in the first half delivering growth in adjusted profit before tax and strong cash flow despite cost inflation from materials and transport in North America, and lower profits in Commodities. Food & Beverage Solutions performed well with strong volume growth in North America, Asia Pacific and Latin America. In Primary Products, Sweeteners and Starches delivered solid underlying performance.

The three programmes we announced in May 2018 to sharpen the focus on our customers, accelerate portfolio development and simplify the business are progressing well. With our clear direction, strong financial position and a strengthened leadership team driving greater pace and agility across the organisation, we remain well-placed to realise the growth potential of our business.

The outlook for the year ending 31 March 2019 remains unchanged.”

 

1 The adjusted results for the six months to 30 September 2018 have been adjusted to exclude exceptional items, amortisation of acquired intangible assets, the tax on those adjustments and tax items that themselves meet the definition to be treated as exceptional. A reconciliation of statutory and adjusted information is included in Note 2 to the Financial Information. Growth percentages are calculated on unrounded numbers.

2 The adjusted results for the six months to 30 September 2017 have been restated to reflect changes in reportable segments and to include net retirement benefit interest expense (2017 - £3 million) and associated tax which is no longer excluded from adjusted performance metrics

3 Percentage change in constant currency

4 Adjusted operating profit, percentage change in constant currency

5 Adjusted diluted earnings per share from continuing operations at constant currency 

 

For more information, contact Tate & Lyle PLC:

Christopher Marsh, VP Investor 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 2018, Tate & Lyle sales totalled £2.7 billion. For more information, please visit http://www.tateandlyle.com