Tate & Lyle - H1 broadly in line with expectations; good volume momentum in F&B Solutions

Davy Research
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H1 profit delivery was broadly in line with our expectations. The F&B Solutions revenue and margin out-turn was better than anticipated with volumes accelerating to 4.0% (3.0% in North America and double-digit growth in emerging markets). Cost inflation and softness in Commodities held back Primary Products; however, cost inflation of £12m in the period was mitigated with group margins broadly flat year-on-year (yoy). Tate has reiterated its FY 2019 guidance, which calls for adjusted constant currency EPS growth to be in the lower mid-single-digit range. At first look, we do not expect any material changes to our FY 2019 forecast EPS.