Profit before tax increased to £233M from £126M in the 12 months to March 31, Tate & Lyle reported this week (May 25). Sales were also up 17% to £2.75bn, and diluted earnings per share increased 109% to 54.2p.
Currency fluctuations meant Tate & Lyle increased its adjusted profit before tax by £40M. The majority of that profit adjustment came after the UK’s Brexit vote, it said.
‘Excellent commercial and manufacturing performance’
Tate & Lyle chief executive Javed Ahmed said: “This has been a year of strong performance. Both business divisions delivered good profit growth, with Bulk Ingredients delivering particularly good results, driven by excellent commercial and manufacturing performance.
“Cash generation was especially pleasing with adjusted free cash flow more than three times higher than the prior year, supporting improved dividend cover and a strong balance sheet. This has been a very encouraging year that reflects the steps we have taken, and continue to take, to build a stronger business with higher quality earnings, capable of delivering sustainable long-term growth.”
‘A very encouraging year’
Sales in the Bulk Ingredients division increased 21% across the 12 months, up to £1.76bn. The division’s adjusted operating profit increased 54% to £129M.
The Speciality Food Ingredients division reported a sales rise of 11% to £996M. It also reported a 21% increase in adjusted operating profit.
The ingredients maker highlighted its Splenda brand, after the sweetener brand’s adjusted operating profit increased by 77% in constant currency to £52M. The profit rise was driven by better than expected price, and the sale of excess inventory.
The manufacturer was confident of making further progress over the next financial year, it said.
Tate & Lyle results – at a glance
- Profit before tax up 85% to £233M
- Sales up 17% to £2.75bn
- Diluted earnings per share up 109% to 54.2p