Tate & Lyle performs "solidly"

Tate & Lyle has announced that, for the year ended 31 March 2016, it performed solidly with adjusted profit before tax up 5% (1% in constant currency), in line with expectations.

Tate & Lyle performs solidly

Tate & Lyle has announced its results for the year ended 31 March 2016. The group performed solidly, it said, with adjusted profit before tax up 5% (1% in constant currency), in line with expectations. Major structural change initiatives were successfully executed, significantly strengthening the business, while the Eaststarch joint venture was re-aligned to increase speciality focus and reduce exposure to regulated markets.

The company noted that its SPLENDA Sucralose had been restructured and repositioned as a more focused, low cost and sustainable business. Capacity expansion projects for Speciality Food Ingredients were completed as planned, and the group achieved stronger supply chain performance as operational disciplines continued to strengthen.

Speciality Food Ingredients margin expaned, with adjusted operating profit up 10% (5% in constant currency). New products sales increased by 34% in constant currency, while Bulk Ingredients adjusted operating profit was up 1% (3% lower in constant currency).

Adjusted diluted earnings per share were up 2.5p (8%) at 34.5p.

“This has been a year of solid financial performance and strong project delivery,” said Javed Ahmed, Chief Executive. “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. We also made progress against the 2020 Ambition we outlined in November 2015.”

“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.”