Tate & Lyle have announced their full year results today.
The food manufacturer reported a decline in sales, 1 pct lower year-on-year and an operating profit of £298m in line with expectations.
Javed Ahmed, Chief Executive, said:
"Tate & Lyle delivered a solid performance in the face of challenging conditions in a number of our markets. In particular, our core value added food ingredients delivered a strong result, reflecting steady demand and firmer pricing. I am also pleased that, through resolute focus on the financial priorities we set ourselves at the beginning of the year, we have significantly strengthened the Group's balance sheet."
Beating forecasts at Davy, the broker offered this advice:
"Tate remains very cash generative with free cash flow of £540m...total exceptional charges amounted to £276m in the full year"
"In our view, the outlook statement is limited in terms of detail and we hope to receive more detail on guidance and future strategy following the conference call this morning." said analysts, who have a 'neutral' rating on the stock without a price objective whilst the coverage is ongoing.
"I am announcing today that we are refocusing our strategy, with our Speciality Food Ingredients business being the key focus of investment and long-term growth, as well as making a number of important changes to the Group's organisation. Through these changes, and a strong focus on operational excellence and execution, we will build the platform to deliver sustainable long-term growth." said Chief Executive, Javed Ahmed.
"The company has decided to mothball its facility in Fort Dodge (Iowa) due to the continuing depressed and volatile outlook for ethanol and uncertain conditions in industrial starch and corn gluten feed markets. It has taken an exceptional charge of £217m against this" said Davy.
"The CEo outlined some changes within the business, including a 'go-to-market' strategy for each distinct business unit. We hope to receive more detail on guidance and future strategy following the conference call this morning." they added.
Shares in the sugar company fell 1.5 pct (6.50 pence) by 10:23 am.