Tate & Lyle PLC (LON:TATE), today announced full year results for the year ended 31 March 2019.
| Adjusted results | Statutory results | ||||||||
| Year ended 31 March1Continuing operations£m unless stated otherwise | 2019 | 2018(restated) | Constant currency change | 2019 | 2018 | Change | |||
| Sales | 2 755 | 2 710 | 2% | 2% | |||||
| Profit before tax (PBT) | 309 | 296 | 4% | 240 | 286 | (16%) | |||
| Diluted earnings per share | 52.0p | 49.4p | 4% | 38.6p | 56.1p | (31%) | |||
| Net debt – at 31 March | 337 | 392 | |||||||
| Dividend per share | 29.4 | 28.7 | 2.4% | ||||||
Key highlights
· Group delivered solid financial progress
‒ Food & Beverage Solutions maintained momentum
‒ Sucralose performed strongly
‒ Primary Products volume in line with prior year despite challenging market conditions
· Progress on each of ‘Sharpen, Accelerate, Simplify’ priorities
· Four-year US$100m productivity programme on track, with benefits offsetting cost inflation
· Strengthened balance sheet provides flexibility to invest in long-term growth
Financial highlights
· 3% increase in Food & Beverage Solutions profit3 to £143m, volume 3% higher
‒ Volume up 3% in North America, up 15% in Emerging Markets, down 2% in Europe, Middle East and Africa
‒ Sales 5% higher2, up in all regions
· 11% increase in Sucralose profit3 to £61m, volume 16% higher
· 11% decrease in Primary Products profit3 to £148m, volume in line with prior year
‒ Sweeteners and Starches profit3 5% lower due to higher input costs
‒ Commodities profit3 £10m lower following exceptionally strong profits in fiscal 2018
· Group statutory profit before tax 16% lower due to net exceptional costs of £58m (£49m non-cash)
· 4% increase2 in adjusted profit before tax
· 4% increase2 in adjusted diluted earnings per share
· Adjusted free cash flow higher at £212m
· 90bps improvement in return on capital employed to 17.1%
· Proposed final dividend of 20.8p per share; full year dividend of 29.4p per share up 2.4%
Nick Hampton, Tate & Lyle 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 growth4 in constant currency to be broadly flat to low-single digit.”
