Tate & Lyle reports 28% hike in PBT

The company said group adjusted profit before tax was up 28% at £103m (2014 ‒ £80m), with Speciality Food Ingredients adjusted operating profit up 28% at £76m (2014 – £59m).

Tate & Lyle reports 28% hike in PBT

Tate & Lyle has reported group adjusted profit before tax up 28% at £103m (2014 ‒ £80m), with Speciality Food Ingredients adjusted operating profit up 28% at £76m (2014 – £59m). Volume from New Products increased by 50%. Bulk Ingredients adjusted operating profit was 9% lower at £42m (2014 – £47m).

The company declared its ambition to further strengthen the business mix by 2020, with 70% of group profits coming from Speciality Food Ingredients; 30% of Speciality Food Ingredients sales from Asia Pacific and Latin America; and $200m of sales from new products

“We have made an encouraging start to the year,” said Javed Ahmed, Chief Executive. “Speciality Food Ingredients performed well as volume momentum built throughout the first half, as anticipated, and our new products targeted at the health and wellness space grew strongly. Bulk Ingredients performed steadily despite the impact of sharply lower ethanol margins. Overall, with our change programmes progressing as planned and executional disciplines strengthening across the business, we remain on track to deliver the guidance for the full year we set out in May, and for future growth.”

Expectations for the full year remain unchanged from the company’s guidance issued with its full year results in May 2015 that the group’s adjusted profit before tax from continuing operations in constant currency and on an equity accounting basis will be broadly in line with that of the 2015 financial year at £193 million6.

The longer term outlook for the business is positive, Tate & Lyle said. Over time, it expects the market for speciality food ingredients to grow at mid-single digits and its objective is to grow modestly ahead of the market and to drive margin expansion. The company will target stable earnings from core Bulk Ingredients and continue to manage Commodities to dampen volatility. As a result, it expects the group to deliver earnings growth.