Tate & Lyle PLC - Trading Update

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Tate & Lyle issues the following routine trading update following the annual sales contract pricing rounds at three of its major businesses – Food & Industrial Ingredients, Europe; Sugars, Europe; and Food & Industrial Ingredients, Americas.

Overall, trading for Tate & Lyle since the announcement of our interim results on 3 November 2005 has continued to progress satisfactorily and the outlook for the year to 31 March 2006 has not altered.

The expansion of our Alabama SPLENDA® Sucralose facility and the construction of our new Singapore facility are on schedule. The expanded Alabama facility is expected to commence commissioning in April, as planned, thereby doubling the capacity acquired in April 2004.


The overall net result of the annual sales contract pricing rounds is that we have achieved our objective of recovering next year's higher energy costs. The effect on the three businesses is detailed below.

The European market for sugar and related products has, as stated in both our interim results announcement and the 25 November 2005 announcement regarding reform of the sugar regime, been affected by an oversupply of sugar. As expected, the calendar 2006 sweetener pricing round in the markets where Ingredients, Europe competes with sugar has been challenging. The markets for value added food ingredients and industrial starches have been more robust. After higher energy costs we expect in local currency terms total net margins for Ingredients, Europe to be below those achieved in calendar 2005.

The anticipated oversupply of sugar in Europe has also affected our European cane refineries and our sugar beet operations in East and Central Europe. The market pressure that we previously highlighted has intensified in the last few months and this is expected to lead to a modest decline in earnings for Sugars, Europe in the balance of this financial year and a further decline in the year to March 2007.

Ingredients, Americas has substantially completed the negotiation of its calendar 2006 sweetener sales contracts. These contracts, as in previous years, are a mix of toll business (where Ingredients, Americas receives a fixed processing margin) and conventional supply contracts (where Ingredients Americas accepts risk on the price of corn, which it covers on the futures market). In calendar 2006 in local currency we expect to more than recover the higher energy costs. We also anticipate achieving higher total net margins on value added food ingredients and other products. SPLENDA® and the SPLENDA® logo are trademarks of McNeil Nutritionals, LLC

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.