Tate & Lyle Plc - Trading Statement

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Tate & Lyle plc 

TRADING STATEMENT

Tate & Lyle issues the following trading statement for the three months ended 31 December 2019.

Group

The underlying performance of the Group was consistent with the first half and in line with our expectations.  Our guidance for the year ending 31 March 2020 remains unchanged.

Food & Beverage Solutions

Adjusted operating profit performance in the quarter continued to be strong.  Sales in all regions were ahead of the comparative period as we continued to drive good price and mix management, with volume overall broadly in line.  While sales growth was slower in Asia Pacific and Latin America, we saw solid growth in North America and Europe, Middle East and Africa.

Sucralose

As expected, sales and adjusted operating profit were ahead of the comparative period reflecting good operational performance and the phasing of shipments from the first half into the quarter.

Primary Products

The division remains on track to deliver steady performance in the full year.  In Sweeteners and Starches, profit was higher than the comparative period with strong performance in manufacturing and supply chain and good cost discipline more than offsetting lower sweetener demand from joint ventures and continued industrial starch softness.  In Commodities, profit was ahead of the comparative period due to the earlier phasing of annual contracts.

The 2020 calendar year bulk sweetener pricing round is nearing completion with margins broadly in line with the prior year.

Guidance

Our guidance for the year ending 31 March 2020 remains unchanged and we continue to expect earnings per share growth in constant currency to be broadly flat to low-single digit.