Tate & Lyle PLC - Trading Update for six months ended 30 September 2015

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Release of the trading update for the six months to 30 September 2015 shows the Group is performing in line with expectations.

Tate & Lyle issues the following trading update for the six months ended 30 September 2015 ahead of the announcement of Half Year Results on Thursday 5 November 2015.

OPERATING PERFORMANCE – CONTINUING OPERATIONS

The Group’s trading performance in the first half was in line with our expectations and guidance for the full year remains unchanged.

Speciality Food Ingredients performed encouragingly and ahead of the comparative period. As anticipated, the Speciality Food Ingredients business returned to volume growth in the second quarter. Volumes were also ahead of the comparative period in SPLENDA® Sucralose and, following the Gemacom acquisition, strongly ahead in Food Systems.

Bulk Ingredients, excluding commodities (ethanol and co-products), continued to perform steadily and slightly ahead of the comparative period supported by solid sweetener demand. Commodities, which continued to be impacted by low US ethanol margins, were significantly lower than the comparative period, and, as a result, Bulk Ingredients overall performed below the comparative period.

The annual bulk sweetener pricing round is in progress. As previously communicated, toll contracts represent around 75% of our US corn sweetener volumes, significantly reducing the volume of our business that is re-contracted in any single year.

EASTSTARCH RE-ALIGNMENT

The process of obtaining regulatory approval for the re-alignment of the Eaststarch joint venture in Europe is now concluded and we expect to complete this transaction during the third quarter of the financial year.

The Group will report the results of the disposed elements of the Eaststarch joint venture within Discontinued Operations in the financial year ending 31 March 2016. In light of this, in its presentation of adjusted performance measures, the Group will cease the use of proportionate consolidation of joint ventures and adopt equity accounting for joint ventures.

We will publish shortly on our website (www.tateandlyle.com) comparative financial information for the six month period to 30 September 2014 and for the year ended 31 March 2015 showing the impact of these changes.


OUTLOOK

Overall, before the impact of exchange rate movements1 and the final timing of the completion of the Eaststarch transaction, expectations for the Group’s full year performance remain unchanged from our guidance issued at our Full Year results in May 2015.


1Guidance assumed exchange rate of GBP: USD £1.00:$1.54.


END

A conference call will be held today at 8:00am BST, hosted by Javed Ahmed, Chief Executive and Nick Hampton, Chief Financial Officer. Participants are requested to dial in at least 10 minutes before the commencement of the call. Dial in details are as follows:

Standard International Access: +44 (0) 20 3003 2666
Password: Tate & Lyle

UK replay number: +44 (0) 20 8196 1998
Replay access PIN: 3562780

A replay of this call will be available after the end of the live call for 14 days until 21 October 2015.
 

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.

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