London / UK. (tl) Tate + Lyle PLC, a leading global provider of speciality food ingredients and solutions, announced its results for the full year ended 31 March 2014. Chief Executive Javed Ahmed: «During the year, we continued to make steady progress in executing our strategy. The delivery of solid profit growth in starch-based speciality ingredients and Food Systems, along with another year of strong growth in emerging markets, was offset by the impact of the cold spring in the US last year followed by the recent severe and prolonged winter, and an increasingly competitive market for «Splenda» Sucralose. While we will continue to face sucralose pricing headwinds in the current year, our strong innovation pipeline, robust balance sheet and continued growth in emerging markets means we are well placed to deliver growth over the longer term». Highlights:
- Speciality Food Ingredients sales up four percent (also in constant currency) at 983 million GBP with adjusted operating profit in line with the prior year (up one percent in constant currency) at 213 million GBP:
- Continued strong growth in Asia and Latin America
- Acquisition of Biovelop, and in China, the formation of Tate + Lyle Howbetter and agreement to acquire Winway Biotechnology
- Bulk Ingredients adjusted operating profit five percent lower (four percent lower in constant currency) at 172 million GBP due to soft beverage season and unusually cold and prolonged winter in the US
- Adjusted profit before tax two percent lower (flat in constant currency) at 322 million GBP
- Balance sheet remains strong with reduction in net debt of 126 million GBP to 353 million GBP (2013: 479 million GBP)
- Final dividend of 19,8 GBPence proposed making a total dividend of 27,6 GBPence (2013: 26,2 GBPence) up 5,3 percent on prior year
- Successful deployment of upgraded IS/IT platform across Europe with US and Singapore on track for the summer
- Board approval of capital investment of 100 million GBP over the next two years in Speciality Food Ingredients to expand capacity for existing and pipeline products
Outlook: In Speciality Food Ingredients, we expect to deliver volume growth across all major product categories but a lower profit contribution from «Splenda» Sucralose is expected to offset a good performance elsewhere in the division. Profits in this division are expected to be more evenly weighted between the first and second halves than the previous financial year. In Bulk Ingredients, we now anticipate a slower start in the US in our first quarter associated with the prolonged and severe winter, combined with lower European sugar prices in our second half, to outweigh a better performance across other product categories. Overall, and before the impact of currency movements, while we expect the Group´s performance for the full year to be slightly lower than the comparative period, we are well placed to deliver growth in the longer term.
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