Tate & Lyle PLC - Statement on Entering Close Period
In line with our usual practice, Tate Lyle PLC issues the following update for the year ending 31 March 2013 ahead of the announcement of the full year results on 30 May 2013.
Since the interim management statement in February, the Group has continued to perform solidly and in line with our expectations. We continue to expect to deliver modest progress for the full financial year.
FULL YEAR OPERATING PERFORMANCE – CONTINUING OPERATIONS
In Speciality Food Ingredients, we will achieve solid sales growth for the full year with the rate of volume growth in the second half slightly ahead of that achieved during the first half. While sucralose volume growth has continued at more normal run rates in the fourth quarter, volumes for the full year, as anticipated, will be slightly lower than the prior year. Operating profit in this division will be broadly in line with last year as a result of the step change in fixed costs associated with our business transformation initiatives.[1]
Within Bulk Ingredients, a good underlying performance from sweeteners in both the US and Europe is expected to more than offset the impact of the costs associated with handling higher levels of aflatoxin[2] following the severe drought in the US in 2012 and continued challenging market conditions in US ethanol.
BALANCE SHEET
The recent strengthening of the US dollar against sterling will result in net debt being somewhat higher than previously anticipated due to the translation of US dollar denominated debt. As a result, net debt at 31 March 2013 is now expected to be slightly higher than the level reported at the end of last year.
[1] Restart of the McIntosh facility; investment in global shared services and IS/IT system; development of global Commercial and Food Innovation Centre in Chicago
[2] A fungus impacting corn quality caused by extremely dry and hot conditions
END
CONFERENCE CALL
A conference call will be held today at 8.00am GMT, hosted by Javed Ahmed, Chief Executive and Tim Lodge, Chief Financial Officer.Participants are able to pre-register for the call using the following link: http://emea.directeventreg.com/registration/26924714 .
Participants who have not pre-registered are able to access the live call by using the dial in details below. We would recommend that participants who have not pre-registered dial in at least 10 minutes before the commencement of the call.
Dial in details:
UK dial in number: +44 (0) 1452 582 725 Conference ID: 26924714
There is also a 14 day conference call replay facility.
Replay dial in details: UK replay number: +44 (0)1452 550 000 Replay Access code: 26924714
Tate Lyle operates through two global business units, Speciality Food Ingredients and Bulk Ingredients, supported by Innovation and Commercial Development. The Group's strategy is to become the leading global provider of Speciality Food Ingredients through a disciplined focus on growth, and by driving the Bulk Ingredients business for sustained cash generation to fuel this growth.
Speciality Food Ingredients include starch-based speciality ingredients (corn-based speciality starches, sweeteners and fibres), no calorie sweeteners (including SPLENDA® Sucralose) and Food Systems which provides blended ingredient solutions. Bulk Ingredients include corn-based bulk sweeteners, industrial starches and fermentation products (primarily acidulants). The co-products from both divisions are primarily sold as animal feed.
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 2012, Tate Lyle sales totalled £3.1 billion. http://www.tateandlyle.com. SPLENDA® is a trademark of McNeil Nutritionals, LLC
