REG - Tate & Lyle PLC - Trading Statement

Tate & LyleAnnouncement

11/02/2022 07:00

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RNS Number : 3566B  Tate & Lyle PLC  11 February 2022

11 February 2022 - Tate & Lyle PLC

 

 

TRADING STATEMENT

 

Tate & Lyle issues the following trading statement for the three months
ended 31 December 2021.

 

Headlines

·   Third quarter trading in line with our expectations

·   Outlook for total operations (current Tate & Lyle Group) for the
year ending 31 March 2022 unchanged, performance of continuing operations (new
Tate & Lyle) now expected to be stronger

·   Food & Beverage Solutions top-line momentum continues with revenue
19% higher

·   New Products performance remains strong with revenue 54% higher

·   Positive outcome from the 2022 calendar year pricing round

·   Transaction to create two focused businesses on track for completion at
the end of March 2022

 

Nick Hampton, Chief Executive said:

"Food & Beverage Solutions delivered another excellent quarter with
double-digit revenue growth across all regions and continued high demand for
New Products from our innovation pipeline.

 

We enter 2022 in a strong position.  Our new business pipeline in Food &
Beverage Solutions is healthy and in both our businesses we have renewed 2022
calendar year customer contracts that offset inflation.  In addition, the
transaction we announced last year to create two focused businesses is
progressing well and we remain on track for completion at the end of March.

 

With Tate & Lyle re-positioned as a growth-focused, global food and
beverage solutions business serving faster growing markets, we see significant
opportunities ahead.  Consumer demand for healthier food and drink is
accelerating globally and with our leading expertise in sweetening, mouthfeel
and fortification, the new Tate & Lyle is well positioned to capture this
growth."

 

Continuing operations (New Tate & Lyle)

Strong top-line growth building on positive momentum in the first half.

 

 Three months ended 31 December 2021    Volume  Revenue(1)
 Food & Beverage Solutions              +6%     +19%
 Sucralose                              +7%     +8%
 Continuing operations                          +18%

 

1 Growth in constant currency

 

Food & Beverage Solutions

Food & Beverage Solutions revenue growth continued to be strong,
increasing by 19% from higher volume, price mix, the benefit of acquisitions
and excellent growth from New Products.  Looking through the impact of the
Covid-19 pandemic and before the impact of reporting changes, compared to the
quarter to 31 December 2019, volume was 12% higher and revenue 31% higher.

 

North America and Europe each delivered double-digit revenue growth reflecting
good commercial performance and mix management.  In Asia, Middle East, Africa
and Latin America revenue growth accelerated strongly in the quarter helped by
robust growth in China, South-East Asia and Mexico.

 

Sucralose

Revenue was 8% higher reflecting good customer mix and solid demand.

 

Discontinued operations(1) (NewCo)

Bulk sweetener volume was broadly in line and industrial starch volume
slightly lower than the comparative period.  However, as expected, overall
performance was significantly weaker due to cost inflation and actions taken
to reduce costs in the comparative period to mitigate the impact of the global
pandemic.

 

Transaction update

We remain on course to complete the sale of a controlling stake in our Primary
Products business in the Americas at the end of March 2022.

 

As previously announced, following completion we intend to return
approximately £500 million to ordinary shareholders by way of a special
dividend with an associated share consolidation, subject to shareholder
approval.  We expect to announce the timing of this shortly after
completion.

 

Tate & Lyle's results for the year ended 31 March 2022 will be announced
on Thursday 9 June 2022.

 

Outlook for year ending 31 March 2022

The outlook for the financial year for total operations (current Tate &
Lyle) remains unchanged with the performance of continuing operations expected
to be stronger and discontinued operations weaker, as set out below.

 

Continuing operations (new Tate & Lyle)

·   Growth in adjusted profit before tax in constant currency is now
expected to be in the low double-digit percent range

 

Total operations (current Tate & Lyle Group)

·   Change in adjusted diluted earnings per share in constant currency to
be mid single-digits percent lower due to the performance of discontinued
operations and cost inflation.

 

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1 The discontinued business represents the disposed Primary Products business
in North America and Latin America and its interests in the Almidones
Mexicanos S.A de C.V and DuPont Tate & Lyle Bio-Products Company, LLC
joint ventures (also referred to in this statement as NewCo).

 

END

 

A conference call will be held today at 10.00am GMT hosted by Nick Hampton,
Chief Executive.  Participants are requested to dial in at least 10 minutes
before the start of the call.  Dial in details are as follows:

 

Standard International Access: +44 (0)3305 510 202

Password: 5507290#

 

A replay of this call will be available after the end of the live call for 14
days until 24 February 2022.

Replay number:  +44 (0)20 8196 1480

Replay access PIN: 5507290#

 

 

For more information contact Tate & Lyle PLC:

Christopher Marsh, VP, Investor Relations

Mobile: +44 (0) 7796 192 688

 

Nick Hasell (FTI Consulting), Media Relations

Mobile: +44 (0)7825 523 383

 

About Tate & Lyle:

Tate & Lyle PLC is a leading global provider of food and beverage
ingredients and solutions. Supported by our 160-year history of ingredient
innovation, we partner with customers to provide consumers with healthier and
tastier choices when they eat and drink. We are proud that millions of people
around the world consume products containing our ingredients every day.

 

Through our expertise in sweetening, mouthfeel and fibre fortification, our
Food & Beverage Solutions business develops solutions which reduce sugar,
calories and fat, add fibre, and provide texture and stability in categories
including beverages, dairy, bakery, soups, sauces and dressings. Our Primary
Products business produces nutritive sweeteners, industrial starches used in
paper and packaging, acidulants and products used for animal nutrition.

 

We have around 4,200 employees working in more than 60 locations across 30
countries. Tate & Lyle's purpose is Improving Lives for Generations and
through our purpose we believe we can successfully grow our business and have
a positive impact on society. We live our purpose in three ways, by supporting
healthy living, building thriving communities and caring for our planet.

 

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 2021, Tate & Lyle sales totalled £2.8 billion. For more
information, please visit http://www.tateandlyle.com or follow Tate & Lyle
on Twitter, Linkedin or Facebook.

 

 

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