News

Tate & Lyle profits up 22%

8 Nov 2016

Tate & Lyle has reported a 22% increase in Group adjusted profit before tax driven by strong performance in both divisions, including a 12% increase in Speciality Food Ingredients adjusted operating profit.

Tate & Lyle has reported a 22% increase in Group adjusted profit before tax driven by strong performance in both divisions, including a 12% increase in Speciality Food Ingredients adjusted operating profit. The company saw a £15m increase in Sucralose supported by one-off inventory sell-down, but a £6m decrease in Food Systems driven by lower volume in Europe. Sales from New Products increased 18% to US$51m.

The company saw a £58m increase in profit before tax to £128m with improved operating performance and lower exceptional costs.

“We have made a strong start to the year delivering good profit growth in both divisions supported by good US bulk sweetener demand in the key summer beverage season, and the benefit of the one-off sell-down of excess inventory in Sucralose,” said Javed Ahmed, Chief Executive. “We continued to strengthen execution across the business, leading to further improvement in customer service and supply chain performance.”

Speciality Food Ingredients performed well and consistent with our 2020 Ambitions, delivering double digit profit growth in the core business. All regions delivered solid volume performance other than North America where volume was held back by lower demand. Sales from New Products continued to gain good traction.”

Bulk Ingredients performed particularly well, driven by solid demand, robust margins and strong manufacturing performance. We are continuing to actively position core Bulk Ingredients to deliver steadier earnings over the longer term, with an increasing focus on customer service, cost control and continuous manufacturing improvement.”

“Turning to the outlook, we expect adjusted profit before tax in constant currency for the full year to be higher than we anticipated coming into the year driven by the strong first half performance, with performance in the second half remaining in line with our expectations.”