Tate & Lyle reports full-year sales gains

Tate & Lyle reports full-year sales gains

Speciality Food Ingredients sales rose 7 percent, while Bulk Ingredients profits increased 6 percent.

Tate & Lyle PLC announcement of full year results

 

For the year ended 31 March 2013 Continuing operations

£m unless stated otherwise

2013

2012

Change (reported)

Change (constant currency)

Sales

3 256

3 088

+ 5%

+ 6%

Adjusted results

Adjusted operating profit

358

348

+ 3%

+ 4%

Adjusted profit before tax

329

318

+ 4%

+ 4%

Adjusted diluted earnings per share

57.0p

54.7p

+ 4%

+ 5%

Statutory results

Operating profit

336

404

Profit before tax

309

379

Profit for the year (on total operations)

278

309

Diluted earnings per share (on total operations)

58.5p

64.3p

Cash flow and net debt

Free cash flow

110

79

Net debt

479

476

Dividend per share

26.2p

24.9p

+5.2%

 

Javed Ahmed, chief executive, said: “I am pleased to report that the underlying business continues to perform well and that despite having entered the year facing a number of headwinds we have made progress. The opening of our new global Commercial and Food Innovation Centre in Chicago has significantly enhanced the level of engagement with our customers, and we have also made headway developing the innovation pipeline and bringing new products to market. Looking ahead, we will continue to build on the foundations we have laid and expect to deliver another year of profitable growth.”

Highlights:

  • Speciality Food Ingredients sales up 7 percent to £947 million (8 percent in constant currency) with adjusted operating profit broadly in line (0 percent in constant currency) with the prior year at £213 million (2012 – £214 million)
  • Bulk Ingredients adjusted operating profit up by 6 percent to £182 million (7 percent in constant currency)
  • Adjusted diluted earnings per share up 4 percent to 57.0p (5 percent in constant currency)
  • 5.6 percent increase proposed for the final dividend to 18.8p, making a total dividend increase of 5.2 percent to 26.2p
  • Promising new product launches including our stevia-based, natural, no-calorie sweetener, TASTEVA® Stevia Sweetener and salt reduction product, SODA-LO® Salt Microspheres

Outlook
In Specialty Food Ingredients, we expect to deliver good sales and profit growth with volume growth across all major product categories.

In Bulk Ingredients, against a backdrop of continued corn price volatility, improved bulk sweetener unit margins in the US are expected to offset a softer start in US bulk sweetener volumes and lower isoglucose margins in Europe. Profits within Bulk Ingredients are expected to be more evenly distributed between the first and second half than in the prior year.

Overall, we expect to deliver another year of profitable growth.

 

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