9 February 2017 – Tate & Lyle PLC
Tate & Lyle issues the following trading statement for the three months ended 31 December 2016.
The Group continued to perform strongly in the third quarter with profit in constant currency ahead of the comparative period in both divisions. Speciality Food Ingredients performed in line with expectations while in Bulk Ingredients profit was ahead of our expectations.
In Speciality Food Ingredients, excluding Food Systems and SPLENDA® Sucralose, profit was ahead of the comparative period benefiting from good commercial execution and strong manufacturing performance. Underlying volume was broadly in line with the comparative period. As in the first half, demand in North America continued to be soft with volume lower, whilst in Europe, Middle East and Africa underlying volume growth was robust. Strong volume growth in Latin America largely offset weaker demand in Asia Pacific. Food Systems profit continued to be held back by lower volume and SPLENDA® Sucralose profit was ahead of the comparative period benefiting from the consolidation of production to a single facility.
In Bulk Ingredients, North American sweetener volume remained robust. The calendar 2017 bulk sweetener pricing round is now substantially complete and is expected to deliver modest margin gains in the fourth quarter. Commodities performance was satisfactory and somewhat ahead of our expectations.
Encouraged by performance in the quarter, we now expect the Group’s performance in constant currency for the full year to be modestly ahead of our expectations at the time of our Half Year Results in November 2016.
A conference call will be held today at 08.00am 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
A replay of this call will be available after the end of the live call for 14 days until 23 February 2017.
UK replay number: +44 (0) 20 8196 1998
Replay access PIN: 7131354
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 Relations
Tel: +44 (0) 203 727 1323 or Mobile: +44 (0) 7775 641 807
About Tate & Lyle:
Tate & Lyle is a global provider of ingredients and solutions to the food, beverage and other industries, with operations at more than 25 facilities worldwide.
Tate & Lyle operates through two global divisions, Speciality Food Ingredients and Bulk Ingredients, supported by our Innovation and Commercial Development and Global Operations groups. The Group's strategy is to become a leading global provider of Speciality Food Ingredients through a disciplined focus on growth, and by driving Bulk Ingredients for sustained cash generation to fuel this growth.
Speciality Food Ingredients consists of three platforms: Texturants, which includes speciality starches and stabilisers; Sweeteners, which comprises nutritive sweeteners and our range of no-calorie sweeteners including SPLENDA® Sucralose; and our Health and Wellness portfolio which includes speciality fibres and our salt-reduction offering. Additionally, our Food Systems business provides a wide variety of blended ingredient solutions.
Tate & Lyle Bulk Ingredients includes bulk sweeteners, industrial starches and fermentation products (primarily acidulants). Corn co-products from both divisions are primarily sold as animal feed.
Tate & Lyle is listed on the London Stock Exchange under the symbol TATE.L. American Depositary Receipts trade under TATYY. In the year to 31 March 2016, Tate & Lyle sales totalled £2.4 billion. For more information, please visit http://www.tateandlyle.com.
SPLENDA® is a trademark of Heartland Consumer Products LLC.