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Tate & Lyle (TATE)

Share Price:
Down 700.20p
Change Today:
-9.80p
Market Cap:
3,279.59m

Tate & Lyle posts drop in FY profit, sees 2020 EPS growth flat

23 May 19

LONDON (ShareCast) - (Sharecast News) - Tate & Lyle posted a drop in full-year profit on Thursday, partly due to higher exceptional costs, as it said earnings per share growth for 2020 is expected to be broadly flat to low single-digit at constant currency.
In the year to the end of March 2019, statutory pre-tax profit declined 16% to 240m due to higher exceptional costs, on revenue of 2.8bn, up 2% on the previous year.

The full-year dividend per share was lifted 2.4% to 29.4p.

The group said its food and beverage solutions division maintained momentum, with solid volume growth in North America and double-digit growth in emerging markets. Meanwhile, the sucralose segment performed "particularly strongly", and volumes in primary products were in line with the previous year despite "challenging" market conditions.

Tate also said that its four-year $100m productivity programme is on track, with benefits offsetting cost inflation.

Chief executive Nick Hampton said: "The group delivered solid financial results and we are starting to see real momentum from the three priorities I set out last year to sharpen the focus on our customers, accelerate portfolio development and simplify our business.

"Across the business, strong cost discipline helped offset higher than expected input costs and operational execution was excellent, particularly during the extreme cold weather in the US in early 2019."

Tate said it expects continuing progress in food & beverage solutions and gains from productivity initiatives to offset both lower sucralose profits and continued market challenges in primary products.

As a result, it expects 2020 earnings per share growth in constant currency to be broadly flat to low-single digit.

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Market Data

Currency UK Pounds
Price 700.20p
Change Today -9.80p
52 Week High 800.40p
52 Week Low 633.40p
Volume 1,595,576
Shares Issued 468.38m
Market Cap 3,279.59m

Dividends

  Latest Previous
  Final Interim
Ex-Div 20-Jun-19 22-Nov-18
Paid 31-Jul-19 04-Jan-19
Amount 20.80p 8.60p