Sweeteners maker Tate & Lyle Plc (TATYY.PK,TATE.L) reported Thursday a sharp increase in fiscal 2012 profit, as sales grew 14 percent year-over-year helped by steady growth across many of its markets.
Looking ahead, the food ingredients company said, "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."
Sales for fiscal year 2012 improved 14 percent to 3.09 billion pounds, with 16 percent increase at constant currency. Speciality Food Ingredients sales rose 10 percent, but margins decreased 150 basis points.
The company noted that during the second half, deterioration in the macroeconomic environment in Europe led to weaker demand within some food ingredient categories.
In Bulk Ingredients segment, sales grew 15 percent, but volumes and margins were down from last year.
The company's profit before tax for the year surged 55 percent to 379 million pounds from 245 million pounds in the previous year.
Excluding exceptional items and amortization of intangible assets, adjusted pre-tax profit rose 23 percent to 323 million pounds and grew 26 percent at constant currency.
On a per share basis, earnings were 64.3 pence, significantly up from 34.7 pence in the prior year. Adjusted earnings per share rose 23 percent to 56.4 pence.
The board is also recommending a 5.3 percent increase in final dividend at 17.8 pence per share.
TATE.L is currently trading at 685 pence, up 8 pence or 1.18 percent, on a volume of 138 thousand shares on the LSE.
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by RTT Staff Writer
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