Global food solutions provider Tate & Lyle reports a “good profit” year

Jasmine Lee-Zogbessou 24th May 2018 (Last Updated May 25th, 2018 09:41)

Multinational agribusiness Tate & Lyle has increased in profit, according to its full year results ended 31 March 2018.

Global food solutions provider Tate & Lyle reports a “good profit” year

Multinational agribusiness Tate & Lyle has increased in profit, according to its full year results ended 31 March 2018.

The British-based company has seen a 13% increase in adjusted profit, a 30% increase in primary products profit to £166m, a 5% increase in sucralose profit to £55m and an 8% increase in food and beverage solutions to £137m.

Tate & Lyle reported a £53m higher group statutory profit, with improved trading and lower exceptional costs, while net debt is £60m lower than the previous year.

Tate & Lyle chief executive Nick Hampton said: “Tate & Lyle delivered another year of progress, with good profit and cash delivery. Profit increased in all businesses, cash generation remained strong, and return on capital employed increased by 190 bps to 16.2%.

“The group remains in a strong financial position, increasingly well-positioned to address growing consumer demand for healthier diets with less sugar, calories and fat and more fibre.

“To accelerate business performance and inject more pace into the organisation, we are implementing three programmes to sharpen our focus on our customers, accelerate portfolio development and to simplify the business and deliver greater productivity.

“For the year ending 31 March 2019, we expect growth in earnings per share in constant currency to be in a mid-single digit range, albeit towards the lower end due to energy and transport cost inflation in North America and a strong year of commodities performance in fiscal 2018.

“Looking further ahead, as our three programmes gather momentum, we expect growth in earnings per share to accelerate, organic return on capital employed to improve and strong cash generation to support our progressive dividend policy.”

Volume growth was recorded in Europe in the food and beverages department, with investment in longer term development of the business and higher transport costs moderating profit growth.

A 15% increase ($121m) in sales from new products was also reported, which consists of products in the first seven years after launch.