Tate & Lyle PLC (TATE) - Interim Results for Year Ending 31 Mar 2020

[IanTHughes]

Can be found here ....

https://www.tateandlyle.com/sites/defau ... 0FINAL.pdf

Key highlights

• Encouraging first-half with performance in line with our expectations
‒ Food & Beverage Solutions delivered top-line momentum and double-digit profit2 growth
‒ Sucralose performed solidly with profit2 broadly in-line with the comparative period
‒ Primary Products profit2 lower in challenging market conditions
• ‘Sharpen, Accelerate, Simplify’ priorities supporting performance
• Four-year US$100m productivity programme on track
• Balance sheet strengthened following UK pension buy-in and debt refinancing
• Important sustainable agriculture programme launched
• Full-year guidance unchanged

Financial highlights

• 11% increase in Food & Beverage Solutions profit2 to £90m
‒ Sales 4% higher3 with good price and mix management in all regions
‒ Volume in line with the comparative period
• 1% decrease in Sucralose profit2 to £29m
• 5% decrease in Primary Products profit2 to £86m
‒ Sweeteners and Starches profit2 5% lower; Commodities profit2 in line with the comparative period
• Group statutory profit before tax 45% higher due to lower net exceptional costs
• 3% increase3 in adjusted profit before tax
• 3% increase3 in adjusted diluted earnings per share
• Adjusted free cash flow £19m higher at £171m (£2m higher on pre-IFRS 16 basis*
• Net debt to EBITDA 1.0x (0.6x on pre-IFRS16 basis*
• Interim dividend increased by 0.2p to 8.8p per share; up 2.3%

Nick Hampton, Chief Executive, said:

“We made encouraging progress in the first half. In Food & Beverage Solutions, increased focus on pricing and mix management delivered strong growth. Profit from Primary Products was lower despite good performance from our manufacturing and supply chain network as market conditions continued to be challenging. Both divisions benefited from productivity gains and cost discipline. Cash generation was higher and during the half we took further actions to strengthen our balance sheet.

Our priorities to sharpen the focus on our customers, accelerate portfolio development and simplify the business are driving momentum across the organisation and supporting performance. We are also proud to have established an important programme to support sustainable agriculture for US-grown corn.

Overall, the business is in a strong financial position and delivering clear strategic progress. Despite market challenges, our outlook for the year ending 31 March 2020 is unchanged and we continue to expect earnings per share growth in constant currency to be broadly flat to low-single digit.”

Dividend

An increase in the interim dividend for the six months to 30 September 2019 of 0.2p to 8.8p has been approved by the Board. This will be paid on 3 January 2020 to all shareholders on the Register of Members on 22 November 2019. In addition to the cash dividend option, shareholders will continue to be offered a Dividend Reinvestment Plan alternative.

Sweet!


Ian

[Arborbridge]

An increase in the interim dividend for the six months to 30 September 2019 of 0.2p to 8.8p has been approved by the Board. This will be paid on 3 January 2020 to all shareholders on the Register of Members on 22 November 2019. In addition to the cash dividend option, shareholders will continue to be offered a Dividend Reinvestment Plan alternative.

Sweet!


Ian

Though perhaps not sweet enough Unless my numbers are wrong, I see a rather pedestrian 1.1% pa dividend increase for the past five years, which suggests that TATE is not able to keep up with inflation.
Tate hasn't been a troublesoms share, and for that I'm grateful, but it would be nice to see a little more coming our way. XIRR 6.24% since 2007 so fair to middling: about what I've come to expect of a share that gives me little to think about.

Arb.

[idpickering]

Tate hasn't been a troublesoms share, and for that I'm grateful, but it would be nice to see a little more coming our way. XIRR 6.24% since 2007 so fair to middling: about what I've come to expect of a share that gives me little to think about.

Arb.

That's very much how I feel about my TATE holdings. A share that I don't give much thought about, and worry about it even less. I'm unlikely to top up my holdings on them though.

Ian.

[kempiejon]

Though perhaps not sweet enough Unless my numbers are wrong, I see a rather pedestrian 1.1% pa dividend increase for the past five years, which suggests that TATE is not able to keep up with inflation.
Tate hasn't been a troublesoms share, and for that I'm grateful, but it would be nice to see a little more coming our way. XIRR 6.24% since 2007 so fair to middling: about what I've come to expect of a share that gives me little to think about.

Arb.

I'd been accumulating Tate for over 10 years and according to dividend data the dividend has grown by 2.53% in the last decade, is that keeping pace with prices? I stopped adding when the dividend froze in 2015/16 and sold off my unsheltered stake and didn't buy back in the ISA.

[IanTHughes]

An increase in the interim dividend for the six months to 30 September 2019 of 0.2p to 8.8p has been approved by the Board. This will be paid on 3 January 2020 to all shareholders on the Register of Members on 22 November 2019. In addition to the cash dividend option, shareholders will continue to be offered a Dividend Reinvestment Plan alternative.

Sweet!

Though perhaps not sweet enough Unless my numbers are wrong, I see a rather pedestrian 1.1% pa dividend increase for the past five years, which suggests that TATE is not able to keep up with inflation.
Tate hasn't been a troublesoms [sic] share, and for that I'm grateful, but it would be nice to see a little more coming our way. XIRR 6.24% since 2007 so fair to middling: about what I've come to expect of a share that gives me little to think about.

I had determined to use the one word "Sweet" before reading the details of these interim results. Maybe I should have said "Sweet and Sour" of "One lump or two?"

Yes, the interesting thing to me about Tate & Lyle PLC (TATE) is that it is so UNinteresting! Personally I have an XIRR of 8.85% since October 2015 - 4 years - evenly split between income received and capital increase. The history of dividend increase over the past decade or so is as follows:

Year End  | Dividend | 3 Years | 5 Years | 10 Years | 20 Years
31-Mar-20 | 30.0846  |   2.42% |   1.45% |    2.77% |         
31-Mar-19 | 29.4000  |   1.64% |   1.27% |    2.53% |         
31-Mar-18 | 28.7000  |   0.83% |   1.84% |    2.42% |         
31-Mar-17 | 28.0000  |   0.48% |   2.37% |    2.68% |         
31-Mar-16 | 28.0000  |   2.24% |   3.39% |    3.42% |         
31-Mar-15 | 28.0000  |   3.99% |   4.10% |    3.74% |         
31-Mar-14 | 27.6000  |   5.21% |   3.80% |    3.91% |         
31-Mar-13 | 26.2000  |   4.59% |   3.00% |    3.65% |         
31-Mar-12 | 24.9000  |   2.83% |   2.98% |    3.41% |         
31-Mar-11 | 23.7000  |   1.60% |   3.45% |    2.90% |         
31-Mar-10 | 22.9000  |   2.13% |   3.37% |          |         
31-Mar-09 | 22.9000  |   4.62% |   4.02% |          |         
31-Mar-08 | 22.6000  |   5.22% |   4.31% |          |         
31-Mar-07 | 21.5000  |   4.57% |   3.85% |          |         
31-Mar-06 | 20.0000  |   3.01% |   2.36% |          |         
31-Mar-05 | 19.4000  |   2.91% |         |          |         
31-Mar-04 | 18.8000  |   1.84% |         |          |         
31-Mar-03 | 18.3000  |         |         |          |         
31-Mar-02 | 17.8000  |         |         |          |

Note: Total for Year End 31 Mar 20 assumes final is increased by 2.33% - the same percentage increase as today's announced interim

Ok, not setting the world on fire but 2.77% PA, over the past 10 years is not bad. It is certainly better than some!


Ian

[idpickering]

The results have been well received, with the sp up nearly 8%. Not that we're bothered about that here?

Ian.

[tjh290633]

Yes, the interesting thing to me about Tate & Lyle PLC (TATE) is that it is so UNinteresting! Personally I have an XIRR of 8.85% since October 2015 - 4 years - evenly split between income received and capital increase. The history of dividend increase over the past decade or so is as follows:

Year End  | Dividend | 3 Years | 5 Years | 10 Years | 20 Years
31-Mar-20 | 30.0846  |   2.42% |   1.45% |    2.77% |         
31-Mar-19 | 29.4000  |   1.64% |   1.27% |    2.53% |         
31-Mar-18 | 28.7000  |   0.83% |   1.84% |    2.42% |         
31-Mar-17 | 28.0000  |   0.48% |   2.37% |    2.68% |         
31-Mar-16 | 28.0000  |   2.24% |   3.39% |    3.42% |         
31-Mar-15 | 28.0000  |   3.99% |   4.10% |    3.74% |         
31-Mar-14 | 27.6000  |   5.21% |   3.80% |    3.91% |         
31-Mar-13 | 26.2000  |   4.59% |   3.00% |    3.65% |         
31-Mar-12 | 24.9000  |   2.83% |   2.98% |    3.41% |         
31-Mar-11 | 23.7000  |   1.60% |   3.45% |    2.90% |         
31-Mar-10 | 22.9000  |   2.13% |   3.37% |          |         
31-Mar-09 | 22.9000  |   4.62% |   4.02% |          |         
31-Mar-08 | 22.6000  |   5.22% |   4.31% |          |         
31-Mar-07 | 21.5000  |   4.57% |   3.85% |          |         
31-Mar-06 | 20.0000  |   3.01% |   2.36% |          |         
31-Mar-05 | 19.4000  |   2.91% |         |          |         
31-Mar-04 | 18.8000  |   1.84% |         |          |         
31-Mar-03 | 18.3000  |         |         |          |         
31-Mar-02 | 17.8000  |         |         |          |

Note: Total for Year End 31 Mar 20 assumes final is increased by 2.33% - the same percentage increase as today's announced interim

You have me confused here. Presumably you have averaged out the increases over the last 3 years, 5 years and 10 years respectively?

My own figures look slightly different because I have the year-on- year changes:

Year end    Dividend Change in year              
31/03/1999    17.8                               
31/03/2000    14.6   -17.98% (Change in year end)
31/03/2001    17.8    21.92%                     
31/03/2002    17.8     0.00%                     
31/03/2003    18.3     2.81%                     
31/03/2004    18.8     2.73%                     
31/03/2005    19.4     3.19%                     
31/03/2006    20.0     3.09%                     
31/03/2007    21.5     7.50%                     
31/03/2008    22.6     5.12%                     
31/03/2009    22.9     1.33%                     
31/03/2010    22.9     0.00%                     
31/03/2011    23.7     3.49%                     
31/03/2012    24.9     5.06%                     
31/03/2013    26.2     5.22%                     
31/03/2014    27.6     5.34%                     
31/03/2015    28.0     1.45%                     
31/03/2016    28.0     0.00%                     
31/03/2017    28.0     0.00%                     
31/03/2018    28.7     2.50%                     
31/03/2019    29.4     2.44%

This of course highlights the changes in each year and the effects of various traumas.

I have held since 1999, bought at 392p, added to on 8 occasions and trimmed on 4. The highest price at which I trimmed was in 2006, at 813p. The IRR over that period of 20 years has been 12.7%. Currently the yield of 4.4% is about at the market level.

No reason to sell and not in the rankings for topping up. Back to sleep.

TJH

[IanTHughes]

Yes, the interesting thing to me about Tate & Lyle PLC (TATE) is that it is so UNinteresting! Personally I have an XIRR of 8.85% since October 2015 - 4 years - evenly split between income received and capital increase. The history of dividend increase over the past decade or so is as follows:

Year End  | Dividend | 3 Years | 5 Years | 10 Years | 20 Years
31-Mar-20 | 30.0846  |   2.42% |   1.45% |    2.77% |         
31-Mar-19 | 29.4000  |   1.64% |   1.27% |    2.53% |         
31-Mar-18 | 28.7000  |   0.83% |   1.84% |    2.42% |         
31-Mar-17 | 28.0000  |   0.48% |   2.37% |    2.68% |         
31-Mar-16 | 28.0000  |   2.24% |   3.39% |    3.42% |         
31-Mar-15 | 28.0000  |   3.99% |   4.10% |    3.74% |         
31-Mar-14 | 27.6000  |   5.21% |   3.80% |    3.91% |         
31-Mar-13 | 26.2000  |   4.59% |   3.00% |    3.65% |         
31-Mar-12 | 24.9000  |   2.83% |   2.98% |    3.41% |         
31-Mar-11 | 23.7000  |   1.60% |   3.45% |    2.90% |         
31-Mar-10 | 22.9000  |   2.13% |   3.37% |          |         
31-Mar-09 | 22.9000  |   4.62% |   4.02% |          |         
31-Mar-08 | 22.6000  |   5.22% |   4.31% |          |         
31-Mar-07 | 21.5000  |   4.57% |   3.85% |          |         
31-Mar-06 | 20.0000  |   3.01% |   2.36% |          |         
31-Mar-05 | 19.4000  |   2.91% |         |          |         
31-Mar-04 | 18.8000  |   1.84% |         |          |         
31-Mar-03 | 18.3000  |         |         |          |         
31-Mar-02 | 17.8000  |         |         |          |

Note: Total for Year End 31 Mar 20 assumes final is increased by 2.33% - the same percentage increase as today's announced interim

You have me confused here. Presumably you have averaged out the increases over the last 3 years, 5 years and 10 years respectively?

Yes, it is in fact the Compound Annual Growth Rate (CAGR) over the different time periods - 3, 5 and 10 years.

I don't exactly know why but I don't currently calculate and record annual changes.


Ian

[MDW1954]

Yes, the interesting thing to me about Tate & Lyle PLC (TATE) is that it is so UNinteresting! Personally I have an XIRR of 8.85% since October 2015 - 4 years - evenly split between income received and capital increase. The history of dividend increase over the past decade or so is as follows:

Year End  | Dividend | 3 Years | 5 Years | 10 Years | 20 Years
31-Mar-20 | 30.0846  |   2.42% |   1.45% |    2.77% |         
31-Mar-19 | 29.4000  |   1.64% |   1.27% |    2.53% |         
31-Mar-18 | 28.7000  |   0.83% |   1.84% |    2.42% |         
31-Mar-17 | 28.0000  |   0.48% |   2.37% |    2.68% |         
31-Mar-16 | 28.0000  |   2.24% |   3.39% |    3.42% |         
31-Mar-15 | 28.0000  |   3.99% |   4.10% |    3.74% |         
31-Mar-14 | 27.6000  |   5.21% |   3.80% |    3.91% |         
31-Mar-13 | 26.2000  |   4.59% |   3.00% |    3.65% |         
31-Mar-12 | 24.9000  |   2.83% |   2.98% |    3.41% |         
31-Mar-11 | 23.7000  |   1.60% |   3.45% |    2.90% |         
31-Mar-10 | 22.9000  |   2.13% |   3.37% |          |         
31-Mar-09 | 22.9000  |   4.62% |   4.02% |          |         
31-Mar-08 | 22.6000  |   5.22% |   4.31% |          |         
31-Mar-07 | 21.5000  |   4.57% |   3.85% |          |         
31-Mar-06 | 20.0000  |   3.01% |   2.36% |          |         
31-Mar-05 | 19.4000  |   2.91% |         |          |         
31-Mar-04 | 18.8000  |   1.84% |         |          |         
31-Mar-03 | 18.3000  |         |         |          |         
31-Mar-02 | 17.8000  |         |         |          |

Note: Total for Year End 31 Mar 20 assumes final is increased by 2.33% - the same percentage increase as today's announced interim

You have me confused here. Presumably you have averaged out the increases over the last 3 years, 5 years and 10 years respectively?

Yes, it is in fact the Compound Annual Growth Rate (CAGR) over the different time periods - 3, 5 and 10 years.

I don't exactly know why but I don't currently calculate and record annual changes.


Ian

An interesting question arises here. You are regarding the period from 31 March 2002 to 31 March 2004 as three years, with dividends rising from 17.8p to 18.8p.

Regarding it as three years gives 1.84%, as you have found.

But the increase has in fact occurred over two years -- the years 31 March 2003 to 31 March 2003, and 31 March 2003 to 31 March 2004.

On that basis, the CAGR is 2.77%.

The same applies to your five-yearly and ten-yearly figures.

MDW1954

[IanTHughes]

You have me confused here. Presumably you have averaged out the increases over the last 3 years, 5 years and 10 years respectively?

Yes, it is in fact the Compound Annual Growth Rate (CAGR) over the different time periods - 3, 5 and 10 years.

I don't exactly know why but I don't currently calculate and record annual changes.

An interesting question arises here. You are regarding the period from 31 March 2002 to 31 March 2004 as three years, with dividends rising from 17.8p to 18.8p.

Regarding it as three years gives 1.84%, as you have found.

But the increase has in fact occurred over two years -- the years 31 March 2003 to 31 March 2003, and 31 March 2003 to 31 March 2004.

On that basis, the CAGR is 2.77%.

The same applies to your five-yearly and ten-yearly figures.

Oh my, one has to be so careful to get it right around here LoL

Thanks for pointing this out and I was initially rather concerned because if you were right just about all be growth calculations on what is a very large Excel Workbook would have been wrong.

In point of fact, the reason is rather more prosaic: there was one final line of dividend recorded in my Share Database that I unaccountably left off. The table should be:

Year End  | Dividend | 3 Years | 5 Years | 10 Years | 20 Years
31-Mar-20 | 30.0846  |   2.42% |   1.45% |    2.77% |         
31-Mar-19 | 29.4000  |   1.64% |   1.27% |    2.53% |         
31-Mar-18 | 28.7000  |   0.83% |   1.84% |    2.42% |         
31-Mar-17 | 28.0000  |   0.48% |   2.37% |    2.68% |         
31-Mar-16 | 28.0000  |   2.24% |   3.39% |    3.42% |         
31-Mar-15 | 28.0000  |   3.99% |   4.10% |    3.74% |         
31-Mar-14 | 27.6000  |   5.21% |   3.80% |    3.91% |         
31-Mar-13 | 26.2000  |   4.59% |   3.00% |    3.65% |         
31-Mar-12 | 24.9000  |   2.83% |   2.98% |    3.41% |         
31-Mar-11 | 23.7000  |   1.60% |   3.45% |    2.90% |         
31-Mar-10 | 22.9000  |   2.13% |   3.37% |          |         
31-Mar-09 | 22.9000  |   4.62% |   4.02% |          |         
31-Mar-08 | 22.6000  |   5.22% |   4.31% |          |         
31-Mar-07 | 21.5000  |   4.57% |   3.85% |          |         
31-Mar-06 | 20.0000  |   3.01% |   2.36% |          |         
31-Mar-05 | 19.4000  |   2.91% |         |          |         
31-Mar-04 | 18.8000  |   1.84% |         |          |         
31-Mar-03 | 18.3000  |         |         |          |         
31-Mar-02 | 17.8000  |         |         |          |
31-Mar-01 | 17.8000  |         |         |          |

Note: Total for Year End 31 Mar 20 assumes final is increased by 2.33% - the same percentage increase as today's announced interim


Sorry!


Ian

[Arborbridge]

Dividendata gives the pa increase in the dividend as follows: 5,10,15 years - 1.27%, 2.53%, 3.03%.

On my own chart below, it looks as though the roling dividends are just about staying abreast if RPI. With a smattering of purchases around 4.xx % I am reasonably happy. Which is perhaps all a reasonable HYPer can reasonably ask for!

[IanTHughes]

Dividendata gives the pa increase in the dividend as follows: 5,10,15 years - 1.27%, 2.53%, 3.03%.

On my own chart below, it looks as though the roling dividends are just about staying abreast if RPI. With a smattering of purchases around 4.xx % I am reasonably happy. Which is perhaps all a reasonable HYPer can reasonably ask for!

Well that sounds ...... reasonable!


Ian