Tate & Lyle Final Results

Javed Ahmed, Chief Executive, said:

Tate & Lyle performed well with steady growth across a number of our markets supported by exceptionally strong returns from co-products in the first half. This was a year of working hard to achieve a number of our business transformation milestones while at the same time delivering profitable growth. During the year we opened our new global Commercial and Food Innovation Centre in Chicago which will help us to transform the way we interact with customers and represents a key component of the foundations for long-term growth. We also restarted production at our SPLENDA^® Sucralose facility in the US further reinforcing our position as the leading global provider of sucralose. In the current financial year we expect to make further progress as we build upon the investments we have made and continue to take the steps necessary to transform the business.”

Financial performance

• Speciality Food Ingredients sales up 10% at £887 million (12% in constant currency)
• Adjusted operating profit up 8% at £348 million (11% in constant currency)
• Adjusted diluted earnings per share up 23% at 56.4p (25% in constant currency)
• 5.3% increase proposed for the final dividend to 17.8p, making a total dividend of 24.9p (2011 – 23.7p)

Operational highlights

• Good progress on our business transformation programme with a number of key milestones achieved:
  • Global Commercial and Food Innovation Centre in Chicago opened in March 2012
  • Global Shared Service Centre in, Poland now operational
  • Global IS/IT system now into the test phase with first roll out in summer 2012
• Restart of production at SPLENDA^® Sucralose facility in McIntosh, Alabama

Outlook

In Speciality Food Ingredients we expect to achieve good sales growth, although operating margins in this division are expected to be slightly lower reflecting the additional fixed costs associated with the restart of McIntosh and its share of the investment in the business transformation programme. In Bulk Ingredients, we anticipate improved bulk sweetener margins in both Europe and the US to broadly offset our expectation of more normal co-product returns and the impact of softer market conditions in industrial starches in Europe and ethanol in the US. Overall, taking into account the current level of economic uncertainty and despite a step change in fixed costs associated with the investment necessary to transform the business, we expect to make progress during this financial year.