Tate & Lyle Plc – Half Year Results

TATE & LYLE PLC STATEMENT OF HALF YEAR RESULTS

For the six months to 30 September 2019

Key highlights

• Encouraging first-half with performance in line with our expectation
• Food & Beverage Solutions delivered top-line momentum and double-digit profit² growth
• Sucralose performed solidly with profit² broadly in-line with the comparative period
• Primary Products profit² lower in challenging market conditions

• 'Sharpen, Accelerate, Simplify' priorities supporting performance
• Four-year US$100m productivity programme on track
• Balance sheet strengthened following UK pension buy-in and debt refinancing
• Important sustainable agriculture programme launched
• Full-year guidance unchanged

Financial highlights

• 11% increase in Food & Beverage Solutions profit² to £90m
• Sales 4% higher³ with good price and mix management in all regions
• Volume in line with the comparative period

• 1% decrease in Sucralose profit² to £29m
• 5% decrease in Primary Products profit² to £86m
• Sweeteners and Starches profit² 5% lower; Commodities profit² in line with the comparative period

• Group statutory profit before tax 45% higher due to lower net exceptional costs
• 3% increase³ in adjusted profit before tax
• 3% increase³ in adjusted diluted earnings per share
• Adjusted free cash flow £19m higher at £171m (£2m higher on pre-IFRS 16 basis^*)
• Net debt to EBITDA 1.0x (0.6x on pre-IFRS16 basis^*)
• Interim dividend increased by 0.2p to 8.8p per share; up 2.3%

Nick Hampton, Chief Executive, said:

“We made encouraging progress in the first half.  In Food & Beverage Solutions, increased focus on pricing and mix management delivered strong growth.  Profit from Primary Products was lower despite good performance from our manufacturing and supply chain network as market conditions continued to be challenging.  Both divisions benefited from productivity gains and cost discipline. Cash generation was higher and during the half we took further actions to strengthen our balance sheet.

Our priorities to sharpen the focus on our customers, accelerate portfolio development and simplify the business are driving momentum across the organisation and supporting performance. We are also proud to have established an important programme to support sustainable agriculture for US-grown corn.

Overall, the business is in a strong financial position and delivering clear strategic progress.

Despite market challenges, our outlook for the year ending 31 March 2020 is unchanged and we continue to expect earnings per share growth in constant currency to be broadly flat to low-single digit.”