News

Tate & Lyle reports "solid financial progress"

27 May 2019

Tate & Lyle has reported its full year results, saying that the group delivered ”solid financial progress”.

Food & Beverage Solutions maintained momentum, while Sucralose performed strongly. Primary Products volume was in line with prior year despite challenging market conditions.

The company saw a 3% increase in Food & Beverage Solutions profit to £143m, with volume 3% higher. Volume was up 3% in North America, and up 15% in Emerging Markets, but down 2% in Europe, Middle East and Africa. Tate & Lyle reported an 11% increase in Sucralose profit to £61m, with volume 16% higher. Primary Products profit fell 11% to £148m, with volume in line with prior year. Sweeteners and Starches profit was 3 5% lower due to higher input costs.

Nick Hampton, Chief Executive, said: “I am encouraged by our progress over the past year. The Group delivered solid financial results and we are starting to see real momentum from the three priorities I set out last year to sharpen the focus on our customers, accelerate portfolio development and simplify our business.”

“In Food & Beverage Solutions top-line momentum continued with solid volume growth in North America and double-digit growth in Emerging Markets. Sucralose performed particularly strongly. Primary Products did well to deliver steady volume in the face of challenging market conditions. Across the business, strong cost discipline helped offset higher than expected input costs and operational execution was excellent, particularly during the extreme cold weather in the US in early 2019.”

“For the year ending 31 March 2020, we expect continuing progress in Food & Beverage Solutions and gains from productivity initiatives to offset both lower Sucralose profits and continued market challenges in Primary Products. As a result we expect earnings per share growth in constant currency to be broadly flat to low-single digit.”