Tate + Lyle: Announces Half Year Results

London / UK. (tl) Tate + Lyle PLC, a leading global provider of speciality food ingredients and solutions, announced its results for the first half 2014. The Statement covers the six months to 30 September 2013 (… which is the first half of the financial year). Chief Executive Javed Ahmed: «While our overall results were held back by a soft beverage season in the US which affected both divisions, the business performed solidly in the first half with good sales growth in Speciality Food Ingredients supported by particularly strong volume growth in emerging markets. We continue to be pleased with the progress we are making in delivering our long-term strategy. As well as broadening the geographic mix of the business, we are increasingly leveraging the investments we have made to strengthen our global innovation capabilities and to collaborate more closely with our customers». Summary:

  • Speciality Food Ingredients sales growth of ten percent (7 percent in constant currency) with adjusted operating profit up three percent (1 percent in constant currency) at 112 million GBP (2012 – 108 million GBP)
  • Bulk Ingredients adjusted operating profit nine percent lower (down eleven percent in constant currency) at 92 million GBP (2012 – 101 million GBP) as a result of lower US sweetener volumes
  • 5,4 percent increase in interim dividend to 7,8 GB-Pence (2012 – 7,4 GB-Pence)
  • Balance sheet remains strong with 143 million GBP reduction in net debt to 336 million GBP (March 2013 – 479 million GBP)

Outlook

In Speciality Food Ingredients, we expect to deliver growth in volumes, sales and profits across all regions for the full year. Within Bulk Ingredients, in North America we expect solid demand for liquid sweeteners and stable demand for our other products. In Europe, lower corn prices are expected to more than offset the impact of lower sugar prices on isoglucose margins. Consequently, we anticipate this division delivering a stronger performance during the second half than the same period last year and full year profits to be more evenly distributed between the first and second half. Our profits remain sensitive to fluctuations in foreign currency particularly the US Dollar to Sterling exchange rate. In addition, as usual, the outcome of the calendar year sweetener pricing rounds will influence performance in the final quarter of the financial year. Overall, we expect to deliver another year of profitable growth.

Tate + Lyle: Announces Half Year Results

London / UK. (tl) «Tate + Lyle PLC made progress in the first six months against the backdrop of a strong first half last year, softer market conditions in Europe and the step change in fixed costs associated with the restart of our ‘Splenda’ Sucralose facility in McIntosh, Alabama and business transformation initiatives. Despite facing a number of headwinds this year, I am pleased that the business continues to perform solidly» – said Javed Ahmed, Chief Executive, in a news release about Tate + Lyle´s results for the six months to 30 September 2012. Highlights:

  • Speciality Food Ingredients sales up five percent (six percent in constant currency) with adjusted operating profit seven percent lower than the strong first half last year after absorbing the step change in fixed costs and a softer first quarter
  • Bulk Ingredients adjusted operating profit up six percent (seven percent in constant currency) with strong performance from sweeteners more than offsetting more normal co-product returns following 19 million GBP of additional income in the comparative period
  • Business transformation programme continues with encouraging initial customer response to our new global Commercial and Food Innovation Centre in Chicago and the launch of our new venture fund
  • 4,2 percent increase in interim dividend to 7,4 GBPence (2011 7,1 GBPence)

Outlook

In Speciality Food Ingredients, while Tate + Lyle expects continued challenging market conditions in Europe, overall the company expects to achieve steady volume growth and solid sales growth for the full year. In Bulk Ingredients, the company expects the firm demand for liquid sweeteners in the US to continue and demand in its other food markets to remain stable. In Europe, higher corn prices are expected to reduce isoglucose margins in the second half. Market conditions in US ethanol are expected to remain challenging. As usual, the outcome of the 2013 calendar year sweetener pricing rounds will influence performance in the final quarter of the financial year. Overall, while recognising the current level of uncertainty around the wider economy and corn quality and pricing, the company continues to expect to make progress this financial year.

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