Tate & Lyle PLC Half Year Results Announcement - Nov 2018

08 November 2018

TATE & LYLE PLC

STATEMENT OF HALF YEAR RESULTS

For the six months to 30 September 2018

Key Highlights

• Overall performance in line with expectations
  • Food & Beverage Solutions accelerating volume growth, including +3% 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 US$100m productivity benefits over four years; cost estimated at up to US$40m

Financial Highlights

• 2% increase³ in adjusted profit before tax  
• 3% increase in Food & Beverage Solutions profit⁴ to £77m
  • Volume up 3% in North America and 16% in Asia Pacific and Latin America
  • 6% increase³ in sales of New Products
• 1% increase in Sucralose profit⁴ to £27m
• Primary Products profit⁴ 6% lower at £85m
  • Sweeteners and Starches profit in line with the comparative period
  • Commodities profit £5m lower following exceptionally strong comparative period
• 5% increase in earnings per share⁵ benefitting from lower finance costs and lower adjusted effective tax rate
• Group statutory profit before tax 30% lower due to net exceptional costs of £47m (predominantly non-cash)
• Adjusted free cash flow £1m higher at £152m, driving net debt £55m lower
• Interim dividend increased by 0.2p to 8.6p per share; up 2.4%

Nick Hampton, Chief Executive, said:

“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.”

_{1 The adjusted results for the six months to 30 September 2018 have been adjusted to exclude exceptional items, amortisation of acquired intangible assets, the tax on those adjustments and tax items that themselves meet the definition to be treated as exceptional. A reconciliation of statutory and adjusted information is included in Note 2 to the Financial Information. Growth percentages are calculated on unrounded numbers.}

_{2 The adjusted results for the six months to 30 September 2017 have been restated to reflect changes in reportable segments and to include net retirement benefit interest expense (2017 - £3 million) and associated tax which is no longer excluded from adjusted performance metrics}

_{3 Percentage change in constant currency}

_{4 Adjusted operating profit, percentage change in constant currency}

_{5 Adjusted diluted earnings per share from continuing operations at constant currency} 

For more information, contact Tate & Lyle PLC:

Christopher Marsh, VP Investor Relations
Tel: +44 (0) 20 7257 2110 or Mobile: +44 (0) 7796 192 688

Andrew Lorenz, FTI Consulting (Media)
Tel: +44 (0) 20 3727 1323 or Mobile: +44 (0) 7775 641 807