Tate & Lyle reports year of progress

30 May 2018

Tate & Lyle has reported what it describes as a year of progress in profit and cash delivery. The company saw a 13% increase in adjusted profit before tax at constant currency with profit growth in all businesses.

Tate & Lyle reports year of progress

Tate & Lyle has reported what it describes as a year of progress in profit and cash delivery. The company saw a 13% increase in adjusted profit before tax at constant currency with profit growth in all businesses, including an 8% increase in Food & Beverage Solutions profit to £137m, with good volume and new products momentum. The Sucralose business saw a 5% increase in profit to £55m, while a 30% increase to £166m in Primary Products profit was achieved, together with 11% profit growth in its main business.

“Tate & Lyle delivered another year of progress, with good profit and cash delivery,” said Nick Hampton, Chief Executive. “Profit increased in all businesses, cash generation remained strong, and return on capital employed increased by 190 bps to 16.2%. The Group remains in a strong financial position, increasingly well-positioned to address growing consumer demand for healthier diets with less sugar, calories and fat and more fibre.”

“To accelerate business performance and inject more pace into the organisation, we are implementing three programmes to sharpen our focus on our customers, accelerate portfolio development and to simplify the business and deliver greater productivity.”

For the year ending 31 March 2019, we expect growth in earnings per share in constant currency to be in a mid-single digit range, albeit towards the lower end due to energy and transport cost inflation in North America and a strong year of Commodities performance in fiscal 2018. Looking further ahead, as our three programmes gather momentum, we expect growth in earnings per share to accelerate, organic return on capital employed to improve and strong cash generation to support our progressive dividend policy.”

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