Tate & Lyle PLC – Trading Update

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In line with its regular practice, Tate & Lyle issues the following trading update prior to meeting with stockbrokers’ analysts and entering its closed period for interim results to 30 September 2002. The interim results will be announced on 7 November 2002. Overall trading experience to date (based upon five months’ results) has continued to be above internal expectations at the beginning of the financial year. Profits in all our major business units continue to meet or exceed plan. The results have improved with the elimination of loss-making businesses that have been sold and continuing benefits from the integration of Amylum into the Group. We expect strong first half results that will be materially above the comparative period and the prior six month period. Net debt has continued to decline with stronger operating cash flows and lower interest and tax payments. Performance at Staley, our US cereal sweetener and starch business, has been strong. Manufacturing costs were lower. There was some improvement in contributions in main product lines and better returns were achieved from by-products. However ethanol selling prices and margins have been substantially lower. At Amylum, capacity utilisation for both wheat and maize has been good and operations in Eastern Europe have performed particularly well, reflecting strong demand. In the West there has been some benefit from lower raw material costs and higher by-product returns. Our sugar businesses in Europe and Canada continue to perform well and provide stable profits and strong cash flow. The reduction in net debt and interest rates together with some benefit from interest on tax repayments has resulted in a substantial reduction in the interest charge and improvement in interest cover. We anticipate that the results for the full year will revert to a traditional trading pattern with a significant weighting of profits towards the first half. Increased selling prices in next calendar year’s sweetener pricing round, including the recovery of prevailing higher corn costs at Staley, will be the significant factor in determining the likelihood of an improvement in Group profits in the second half by comparison with the same period in the previous year.

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.