Half year results for six months to 30 September 2021
Thursday 4 November 2021
Strategic transformation progressing well; strong growth in Food & Beverage Solutions
Headlines
- Group delivered strong H1 performance
- Double-digit revenue growth in Food & Beverage Solutions
- New Products revenue growth acceleration
- Effective management of cost inflation through productivity, cost discipline and pricing
- Delivered environmental commitment to eliminate use of coal in all operations four years ahead of target
- Transaction to create two focused businesses on track for completion in Q1 of 2022 calendar year
- Strong platform for growth as a focused Food & Beverage Solutions business
Financial highlights1
Continuing operations (new Tate & Lyle)
- Revenue +19%; profit before tax +20%
- Food & Beverage Solutions revenue +19%
- New Products revenue +48%
- Sucralose revenue +17%
- Adjusted diluted EPS + 25%
Discontinued operations 2 (NewCo)
- Adjusted profit after tax ( 12)% lower
Total operations (Tate & Lyle Group)
- Statutory profit after tax (23)% low er at £ 102m with exceptional costs of £67m partially offset by benefit of £25m held for sale accounting adjustments
- Adjusted diluted EPS +3% higher at 29.8p
- Free cash flow £67m lower at £127m, net debt £8m lower at £409m
- Interim dividend increased by 2.3% to 9.0p
Nick Hampton, Chief Executive said
“In a year of significant change as we re-position Tate & Lyle as a growth-focused speciality food and beverage solutions business, the Group delivered strong first half performance despite inflationary headwinds. Food & Beverage Solutions had an excellent half and we made good progress on the priorities we set out at the start of the year.
Consumer demand for healthier food and drink continues to strengthen across our markets and this was reflected in the performance of Food & Beverage Solutions which delivered strong volume and double-digit revenue growth across all regions. Our investment in innovation and focus on working more closely with customers continues to generate excellent results with revenue from New Products 48% higher.
The strategic transformation we announced in July is progressing well and we remain on course to complete the sale of a controlling stake in our Primary Products business in the Americas in the first quarter of 2022.
The strong performance of Food & Beverage Solutions underpins Tate & Lyle's future potential as a growth-focused speciality food and beverage solutions business. The new Tate & Lyle is very well-positioned to deliver on its five-year ambition for mid single-digit organic revenue growth and annual operating margin expansion of at least 50 to 100 basis points per year, supported by increased investment in innovation and a strong balance sheet to fund both organic growth and M&A.
We are entering a new, ambitious and exciting chapter for Tate & Lyle and I look forward to the future with great optimism.”
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1 Adjusted metrics percentage changes are in constant currency
2 Defined as the “Disposed Primary Products business” in this statement. Adjusted to exclude impact of exceptional items and IFRS 5 held for sale accounting.