Solid Financial Performance by Tate & Lyle
Tate & Lyle, the UK-based international food ingredients business, has reported a 1% rise in annual group sales to £2.36 billion (3% lower in constant currency reflecting the pass through of lower corn prices) with adjusted profit before tax for continuing operations up 5% at £193 million (1% higher in constant currency). Statutory reported profit before tax was £126 million, largely as a result of net exceptional costs in the year of £50 million, chiefly relating to the restructuring of the group’s SPLENDA® Sucralose and European businesses.
Benefiting from improved mix, good volume growth in the Asia Pacific and Europe, Middle East and Africa (EMEA) regions, and improved SPLENDA® Sucralose performance, sales at the Speciality Food Ingredients division rose by 4% to £897 million (2% higher in constant currency). Bulk Ingredients sales were 1% lower at £1.46 billion (6% lower in constant currency).
Javed Ahmed, chief executive of Tate & Lyle.
Adjusted operating profit in Speciality Food Ingredients grew 10% to £150 million (5% higher in constant currency), and in Bulk Ingredients was 1% higher at £84 million (3% lower in constant currency). Bulk Ingredients margins improved significantly as US corn wet milling industry dynamics remained well-balanced, and manufacturing efficiency improvements were achieved. This strength in the core business largely offset the performance of Commodities which deteriorated sharply in the face of extremely challenging market conditions, especially in US ethanol.
“This has been a year of solid financial performance and strong project delivery. Both business divisions delivered margin expansion and we completed the major structural change initiatives needed to further strengthen the business and drive higher quality earnings,” says Javed Ahmed, chief executive of Tate & Lyle. “We also made progress against the 2020 Ambition we outlined in November 2015.”
He adds: “Turning to the outlook for the 2017 financial year, subject to currency movements, we are confident the group will continue to make progress in line with our plan and towards our 2020 Ambition.”
