Tate & Lyle sees full-year EPS at lower end of guidance range

Tate & Lyle said on Thursday that full-year earnings per share were likely to come in towards the lower end of its guidance range as it takes a hit from energy and transport cost inflation in North America and a strong performance from commodities in 2018.

In a trading statement for the three months to 31 December 2018, the company said group adjusted pre-tax profit at constant currency was ahead of the same period a year ago.

The food and beverage solutions division performed well, with volume growth in line with the first half. Volume growth in North America and Asia Pacific and Latin America showed continued momentum.

In Europe, the Middle East and Africa, meanwhile, the group continued to focus on mix improvement, with adjusted operating profit in the quarter higher than the comparative period.

In the sucralose business, volume rose, benefitting from a programme to optimise production at the company's facility in McIntosh, Alabama, and adjusted operating profit was slightly ahead.

Finally, the primary products segment saw weaker demand in North American sweeteners, which led to lower volume and lower adjusted operating profit. The 2019 calendar year bulk sweetener pricing round is nearing completion with margins broadly in line with the prior year, Tate said.

"Our guidance for the year ending 31 March 2019, remains for growth in earnings per share in constant currency to be in a mid-single digit range, albeit towards the lower end due to energy and transport cost inflation in North America and a year of strong commodities performance in fiscal 2018."

At 0810 GMT, the shares were down 1.5% to 666p.