Tate & Lyle PLC Statement of Full Year Results

Actions to accelerate business performance

•    Growth strategy refocused around three programmes:
–    Sharpen focus on our customers and key categories of beverages, dairy, and soups, sauces and dressings
–    Accelerate portfolio development: innovation, partnerships, acquisitions
–    Simplify the business and deliver US$100m productivity improvements over four years
•    As programmes gather momentum, we expect:
–    Growth² in earnings per share to accelerate 
–    Organic return on capital employed² to improve
–    Strong cash generation to support progressive dividend policy
•    Acquired minority stake in Sweet Green Fields, a leading stevia business

Reporting changes

•    Two divisions renamed: Primary Products and Food & Beverage Solutions (including Sucralose)
•    Three reporting segments: Primary Products, Food & Beverage Solutions, Sucralose 

Year of progress: profit and cash delivery

•    13% increase in adjusted profit before tax at constant currency with profit growth in all businesses 
•    8% increase in Food & Beverage Solutions profit³ to £137m, with good volume and New Products momentum 
•    5% increase in Sucralose profit³ to £55m
•    30% increase in Primary Products profit³ to £166m, 11% profit³ growth in main business, Commodities +£24m
•    7% increase in earnings per share⁴ at constant currency 
•    £53m higher Group statutory profit before tax with improved trading and lower exceptional costs
•    Net debt £60m lower, with adjusted free cash flow £22m higher at £196m
•    Proposed final dividend increased by 0.5p to 20.3p per share; making a total dividend of 28.7p, up 2.5%

Nick Hampton, Chief Executive, said:

“Tate & Lyle delivered another year of progress, with good profit and cash delivery.  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 share⁴ 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 share² to accelerate, organic return on capital employed² to improve and strong cash generation to support our progressive dividend policy.”

^{_{1     The results for the year ended 31 March 2018 have been adjusted to exclude exceptional items, net retirement benefit interest, amortisation of acquired intangible assets, the tax on those adjustments and tax items that themselves meet these definitions. A reconciliation of statutory and adjusted information is included in Note 3 to the Financial Information.}}

^{_{2        In constant currency}}

^{_{3        Adjusted operating profit, percentage change in constant currency}}

^{_{4        Adjusted diluted earnings per share from continuing operations}}

For more information contact Tate & Lyle PLC:

Christopher Marsh, Group VP, Investor and Media Relations

Tel: +44 (0) 20 7257 2110 or Mobile: +44 (0) 7796 192 688

Andrew Lorenz, FTI Consulting (Media)

Tel: +44 (0) 20 3727 1323 or Mobile: +44 (0) 7775 641 807