Tate + Lyle: Half Year 2018 Results Announcement

London / UK. (tl) Tate + Lyle PLC, a leading global provider of speciality food ingredients and solutions, announced the following statement for the six months to 30 September 2018.

Key Highlights

• Overall performance in line with expectations
  • Food + Beverage Solutions accelerating volume growth, including +3 percent in North America
  • Primary Products profits lower due to Commodities
  • Inflationary headwinds proactively managed
• Full year guidance unchanged
• Strengthened leadership team in place
• Early progress on ‘Sharpen, Accelerate, Simplify’ programmes to accelerate business performance
• Actions underway to deliver USD 100m productivity benefits over four years; cost estimated at up to USD 40m

Financial Highlights

• 2 percent increase in adjusted profit before tax
• 3 percent increase in Food + Beverage Solutions profit to GBP 77m
  • Volume up 3 percent in North America and 16 percent in Asia Pacific and Latin America
  • 6 percent increase in sales of New Products
• 1 percent increase in Sucralose profit to GBP 27m
• Primary Products profit 6 percent lower at GBP 85m
  • Sweeteners and Starches profit in line with the comparative period
  • Commodities profit GBP 5m lower following exceptionally strong comparative period
• 5 percent increase in earnings per share benefitting from lower finance costs and lower adjusted effective tax rate
• Group statutory profit before tax 30 percent lower due to net exceptional costs of GBP 47m (predominantly non-cash)
• Adjusted free cash flow GBP 1m higher at GBP 152m, driving net debt GBP 55m lower
• Interim dividend increased by 0.2p to 8.6p per share; up 2.4 percent

Chief Executive’s Commentary

Chief Executive Nick Hampton: «We performed in line with our expectations in the first half delivering growth in adjusted profit before tax and strong cash flow despite cost inflation from materials and transport in North America, and lower profits in Commodities. Food + Beverage Solutions performed well with strong volume growth in North America, Asia Pacific and Latin America. In Primary Products, Sweeteners and Starches delivered solid underlying performance».

«The three programmes we announced in May 2018 to sharpen the focus on our customers, accelerate portfolio development and simplify the business are progressing well. With our clear direction, strong financial position and a strengthened leadership team driving greater pace and agility across the organisation, we remain well-placed to realise the growth potential of our business».

«The outlook for the year ending 31 March 2019 remains unchanged».