Tate & Lyle reports 20% increase in pre-tax profit

30 May 2017

Tate & Lyle has reported a 20% increase in adjusted PBT for the financial year, with good performance and increased margins in both business divisions. The company says it saw a 5% increase in Speciality Food Ingredients adjusted operating profit to £181m,

Tate & Lyle has reported a 20% increase in adjusted PBT for the financial year, with good performance and increased margins in both business divisions. The company says it saw a 5% increase in Speciality Food Ingredients adjusted operating profit to £181m, and 8% profit growth in core business, despite North America volume growth remaining challenging. There was also a £30m increase in Sucralose profit following actions taken to refocus business, but a £19m decrease in Food Systems profit, with significant decline in Europe.

Sales of new products increased 22% to US$105m, and the company also reported a 32% increase in Bulk Ingredients adjusted operating profit to £129m.

Group reported PBT was 85% higher with improved trading, currency translation benefit and lower exceptionals.

“This has been a year of strong performance,” said Javed Ahmed, Chief Executive. “Both business divisions delivered good profit growth, with Bulk Ingredients delivering particularly good results, driven by excellent commercial and manufacturing performance.”

“Speciality Food Ingredients performed well delivering profit growth and margin expansion, and continued to strengthen its focus on commercial execution, particularly in North America where volume growth remains challenging. The innovation pipeline is healthy with New Product sales exceeding US$100 million for the first time.”

“Overall, these results reflect strong execution of our strategy and continued progress towards our 2020 Ambition, and are a testament to the talent and commitment of our people. This has been a very encouraging year that reflects the steps we have taken, and continue to take, to build a stronger business with higher quality earnings, capable of delivering sustainable long term growth.”

“Turning to the outlook, we are confident that the Group will continue to make underlying progress in the 2018 financial year.”