London / UK. (tl) Tate + Lyle PLC, a leading global provider of speciality food ingredients and solutions, announced the following statement for the Financial Year ended 31 March 2017.
Actions to accelerate business performance
- Growth strategy refocused around three programmes:
- Sharpen focus on our customers and key categories of beverages, dairy, and soups, sauces and dressings
- Accelerate portfolio development: innovation, partnerships, acquisitions
- Simplify the business and deliver US USD 100m productivity improvements over four years
- As programmes gather momentum, we expect:
- Growth2 in earnings per share to accelerate
- Organic return on capital employed2 to improve
- Strong cash generation to support progressive dividend policy
- Acquired minority stake in Sweet Green Fields, a leading stevia business
Reporting changes
- Two divisions renamed: Primary Products and Food + Beverage Solutions (including Sucralose)
- Three reporting segments: Primary Products, Food + Beverage Solutions, Sucralose
Year of progress: profit and cash delivery
- 13 percent increase in adjusted profit before tax at constant currency with profit growth in all businesses
- 8 percent increase in Food + Beverage Solutions profit3 to £137m, with good volume and New Products momentum
- 5 percent increase in Sucralose profit3 to £55m
- 30 percent increase in Primary Products profit3 to £166m, 11 percent profit3 growth in main business, Commodities +£24m
- 7 percent increase in earnings per share4 at constant currency
- £53m higher Group statutory profit before tax with improved trading and lower exceptional costs
- Net debt £60m lower, with adjusted free cash flow £22m higher at £196m
- Proposed final dividend increased by 0.5p to 20.3p per share; making a total dividend of 28.7p, up 2.5 percent
Chief Executive’s Commentary
Chief Executive Nick Hampton: «Tate + Lyle delivered another year of progress, with good profit and cash delivery. Profit increased in all businesses, cash generation remained strong, and return on capital employed increased by 190 bps to 16.2 percent. The Group remains in a strong financial position, increasingly well-positioned to address growing consumer demand for healthier diets with less sugar, calories and fat and more fibre.
To accelerate business performance and inject more pace into the organisation, we are implementing three programmes to sharpen our focus on our customers, accelerate portfolio development and to simplify the business and deliver greater productivity.
For the year ending 31 March 2019, we expect growth in earnings per share4 in constant currency to be in a mid-single digit range, albeit towards the lower end due to energy and transport cost inflation in North America and a strong year of Commodities performance in fiscal 2018. Looking further ahead, as our three programmes gather momentum, we expect growth in earnings per share2 to accelerate, organic return on capital employed2 to improve and strong cash generation to support our progressive dividend policy».
