Tate & Lyle PLC Trading Statement - Feb 2016

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Release of the Group Trading Statement for the three months ended 31 December 2015 shows the Group on track to deliver full year guidance.

 

11 February 2016 – Tate & Lyle PLC

TRADING STATEMENT

Tate & Lyle issues the following trading statement for the three months ended 31 December 2015.

OPERATING PERFORMANCE – CONTINUING OPERATIONS

The Group remains on track to deliver full year guidance.

Speciality Food Ingredients performed steadily with volume ahead of the comparative period.  Strong volume growth in Europe and Asia Pacific more than offset softer demand in North America and Latin America.  In Food Systems, volume continued to grow and also benefited from the acquisition of Gemacom in December 2014, however margins declined as a result of the sharp increase in certain ingredient costs.  SPLENDA® Sucralose volume was ahead of the comparative period although, as expected, pricing was lower year-on-year. 

In Bulk Ingredients, North American sweetener volume in the quarter was slightly ahead of the comparative period.  As previously communicated, the bulk sweetener pricing round will deliver modest margin gains in the fourth quarter.  Commodities continue to have a material adverse impact on performance especially due to further weakness in the US ethanol market.  As a result, we now expect a small loss from Commodities for the full year.

OUTLOOK

Our outlook for the full year remains unchanged.  As previously communicated the Group’s adjusted profit before tax from continuing operations in constant currency and on an equity accounting basis is expected to be broadly in line with that of the 2015 financial year at £193 million[1]. At reported rates, adjusted profit before tax is expected to be modestly below this figure[2].

The longer term outlook for the business remains positive.  In Speciality Food Ingredients we expect the market to grow at mid-single digits, and over time our objective is to grow modestly ahead of the market and to drive margin expansion, supported by increased utilisation of new capacity, growing revenues from new products, and a gradual return to growth in North America.  While in the near term we expect weakness in commodity markets to persist, we will continue to target stable earnings from core Bulk Ingredients and to manage Commodities to dampen volatility.

END

A conference call will be held today at 8:00am GMT, hosted by Javed Ahmed, Chief Executive and Nick Hampton, Chief Financial Officer. Participants are requested to dial in at least 10 minutes before the commencement of the call. Dial in details are as follows:

Standard International Access: +44 (0) 20 3003 2666

Password: Tate & Lyle  

UK replay number: +44 (0) 20 8196 1998

Replay access PIN: 6063715#

A replay of this call will be available after the end of the live call for 14 days until 25 February 2016.

 

 

[1] Guidance assumed foreign exchange rates of GBP: USD £1/US$1.54.
[2] Reflects the negative impact of non-US Dollar average exchange rates, principally the Mexican Peso and Brazilian Real.

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About Tate & Lyle PLC:  

Supported by our 165-year history of ingredient innovation, we partner with customers to provide consumers with healthier and tastier choices when they eat and drink. We are proud that millions of people around the world consume products containing our ingredients and solutions every day.  

Through our leading expertise in sweetening, mouthfeel and fortification, we develop ingredients and solutions which reduce sugar, calories and fat, add fibre and protein, and provide texture and stability to food and drink in categories including beverages, dairy, bakery, snacks, soups, sauces, and dressings.  

Tate & Lyle recently acquired CP Kelco, a leading provider of pectin, speciality gums and other nature-based ingredients to create a leader in mouthfeel, significantly enhancing our solutions capabilities. Following this combination, we now have more than 5,000 employees working in around 75 locations in 39 countries, serving customers in more than 120 countries. Science, Solutions, Society is our brand promise and how we will achieve our purpose of Transforming Lives through the Science of Food. By living our purpose, we believe we can successfully grow our business and have a positive impact on society. We live our purpose in three ways, by supporting healthy living, building thriving communities and caring for our planet.  

Tate & Lyle is listed on the London Stock Exchange under the symbol TATE.L. American Depositary Receipts trade under TATYY. For the year ended 31 March 2024, and on a pro forma basis which assumes for illustrative purposes that the combination with CP Kelco took place on 1 April 2023, revenue for the enlarged Tate & Lyle Group would have been £2.25 billion. For more information, please visit www.tateandlyle.com or follow Tate & Lyle on LinkedIn, X (Twitter), Facebook or YouTube