www.tateandlyle.com
Tate & Lyle Interims Ahead Of Expectations Despite Challenging Trading Environment
Tate & Lyle (LSE: TATE) released their latest half-yearly report this morning in which it revealed it had increased sales by 7% during the period and reduced its net debt by 20% since March. The results are ‘slightly ahead of expectations’ and the group is said to be encouraged by the progress in the six months to 30th September.
In a ‘challenging’ environment the company’s overall performance is being supported through it’s ‘core value added food ingredients’ division, which reported a 10% increase in adjusted operating profit in the period.
Across the whole group, adjusted operating profit was reduced by 1% to £148 million. However statutory profit before tax reduced by 59% following £55 million in exceptional costs due to the decision to mothball the sucralose plant in McIntosh, Alabama.
According to today’s statement the Group's performance remains on track to meet expectations for the full year (before the impact of exchange translation), with the Food & Industrial Ingredients businesses appearing to be re-established at slightly lower levels.
The group expects continued underlying growth in Sucralose and improved profits from Sugars in the second half. However Tate & Lyle also indicate that its global industrial starch, US ethanol and US animal feed markets remain under pressure.
Tate & Lyle Chief Executive, Javed Ahmed commented on the group’s performance for the first half of the financial year: “Tate & Lyle performed slightly ahead of our expectations in the first half of the year, before the impact of exchange translation, despite challenging conditions in a number of our markets. We are encouraged by the good progress made in reducing net debt, reflecting our focus on reducing costs, optimising working capital and reducing capital expenditure.”
