- Encouraging first-half with performance in line with our expectations
- Food & Beverage Solutions delivered top-line momentum and double-digit profit2 growth
- Sucralose performed solidly with profit2 broadly in-line with the comparative period
- Primary Products profit2 lower in challenging market conditions
- Sharpen, Accelerate, Simplify’ priorities supporting performance
- Four-year US$100m productivity programme on track
- Balance sheet strengthened following UK pension buy-in and debt refinancing
- Important sustainable agriculture programme launched
- Full-year guidance unchanged
- 11% increase in Food & Beverage Solutions profit2 to £90m
- Sales 4% higher3 with good price and mix management in all regions
- Volume in line with the comparative period
- 1% decrease in Sucralose profit2 to £29m
- 5% decrease in Primary Products profit2 to £86m
- Sweeteners and Starches profit2 5% lower; Commodities profit2 in line with the comparative period
- Group statutory profit before tax 45% higher due to lower net exceptional costs
- 3% increase3 in adjusted profit before tax
- 3% increase3 in adjusted diluted earnings per share
- Adjusted free cash flow £19m higher at £171m (£2m higher on pre-IFRS 16 basis*)
- Net debt to EBITDA 1.0x (0.6x on pre-IFRS16 basis*)
- Interim dividend increased by 0.2p to 8.8p per share; up 2.3%
Nick Hampton, Chief Executive, said:
“We made encouraging progress in the first half. In Food & Beverage Solutions, increased focus on pricing and mix management delivered strong growth. Profit from Primary Products was lower despite good performance from our manufacturing and supply chain network as market conditions continued to be challenging. Both divisions benefited from productivity gains and cost discipline. Cash generation was higher and during the half we took further actions to strengthen our balance sheet.
Our priorities to sharpen the focus on our customers, accelerate portfolio development and simplify the business are driving momentum across the organisation and supporting performance. We are also proud to have established an important programme to support sustainable agriculture for US-grown corn.
Overall, the business is in a strong financial position and delivering clear strategic progress.
Despite market challenges, our outlook for the year ending 31 March 2020 is unchanged and we continue to expect earnings per share growth in constant currency to be broadly flat to low-single digit.”
1 The adjusted results for the six months to 30 September 2019 have been adjusted to exclude exceptional items, amortisation of acquired intangible assets and the tax on those adjustments. A reconciliation of statutory and adjusted information is included in Note 2 to the Financial Information. Growth percentages are calculated on unrounded numbers.
2 Adjusted operating profit, percentage change in constant currency
3 Change in constant currency
* IFRS 16 Leases adoption increased net debt by £173 million and adjusted free cash flow by £17 million. Comparatives have not been restated.
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