REG - Tate & Lyle PLC - Trading Statement

Tate & LyleAnnouncement

21/02/2024 07:00

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RNS Number : 8311D  Tate & Lyle PLC  21 February 2024

 

21 February 2024 - Tate & Lyle PLC

 

TRADING STATEMENT

 

Tate & Lyle issues the following trading statement for the three months
ended 31 December 2023.

 

Headlines

·   Resilient performance and continued good strategic progress

·   EBITDA guidance for year ending 31 March 2024 unchanged

·   Revenue 4% lower, mainly due to softer demand and phasing of orders
into the fourth quarter

·   2024 calendar year customer contracts expected to deliver a return to
volume growth

 

Nick Hampton, Chief Executive said:

"Tate & Lyle delivered resilient performance in challenging market
conditions.

 

In Food & Beverage Solutions, volume and revenue were lower than the
comparative period.  This was due to a combination of softer consumer demand
and customer de-stocking, reduced inflation pass through, and some customers
phasing orders into the fourth quarter when new calendar year contracts, which
included the pass through of input cost deflation, came into effect.
 Sucralose delivered an improved performance.

 

The renewal of customer contracts for the 2024 calendar year is expected to
deliver a sequential improvement in volume growth as the year progresses.
Reflecting this, and the phasing of some customer orders from December, we saw
good volume growth in January.

 

Customers continue to recognise the benefits of our solutions capabilities
across sweetening, mouthfeel and fortification, and we remain committed to our
strategy of increasing investment in both solution selling and innovation.
New Products from our innovation pipeline grew strongly, delivering
double-digit revenue growth on a like-for-like basis in the first three
quarters of the financial year.

 

The strategic repositioning of Tate & Lyle to focus on speciality food
ingredients, and the investments we have made to strengthen our ingredient
portfolio and solutions expertise, have positioned us well to benefit from the
long-term trends towards healthier, tastier and more sustainable food and
drink."

 

                                Revenue Change(1)
                                3 months to        9 months to

31 December 2023
31 December 2023
 Food & Beverage Solutions      (3)%               2%
 Sucralose                      (2)%               (4)%
 Primary Products Europe        (14)%              (6)%
 Group                          (4)%               1%

1     In constant currency.

 

Outlook

For the year ending 31 March 2024, in constant currency, we expect to deliver:

 

·     Revenue slightly lower than the prior year.

·     EBITDA growth unchanged at 7% to 9%.

 

We continue to expect stronger profits from our minority holding in Primient.

 

END

 

The third quarter conference call will be held today at 8.00am GMT hosted by
Nick Hampton, Chief Executive and Dawn Allen, Chief Financial Officer.
Participants are requested to dial in at least 10 minutes before the start of
the call.  Dial in details are as follows:

 

UK dial in number:  +44 (0)33 0551 0200

UK toll free number: 0808 109 0700

US dial in number: +1 786 697 3501

US toll free number: +1 866 580 3963

Password: Tate & Lyle

 

14 day conference call replay:

UK replay number:  +44 (0)20 8196 1480

US toll free replay number: +1 866 583 1035

Access pin: 7930706#

 

For more information contact Tate & Lyle PLC:

Christopher Marsh, VP, Investor Relations

Mobile: +44 (0)7796 192 688

 

Nick Hasell (FTI Consulting), Media Relations

Mobile: +44 (0)7825 523 383

 

 

About Tate & Lyle:

Supported by our 160-year history of ingredient innovation, we partner with
customers to provide consumers with healthier and tastier choices when they
eat and drink. We are proud that millions of people around the world consume
products containing our ingredients every day.

 

Through our expertise in sweetening, fortification, and texture, we develop
ingredient solutions which reduce sugar, calories, and fat, add fibre and
protein, and provide texture and stability in categories including beverages,
dairy, bakery, snacks, soups, sauces, and dressings.

 

We have more than 3,500 employees working in around 57 locations across 39
countries. Science, Solutions, Society is our brand promise and how we will
achieve our purpose of Transforming Lives Through the Science of Food. By
living our purpose we believe we can successfully grow our business and have a
positive impact on society. We live our purpose in three ways, by supporting
healthy living, building thriving communities and caring for our planet.

 

Tate & Lyle is listed on the London Stock Exchange under the symbol
TATE.L. American Depositary Receipts trade under TATYY. In the year to 31
March 2023, Tate & Lyle revenue from continuing operations totaled £1.75
billion. For more information, please visit https://www.tateandlyle.com
(https://www.tateandlyle.com) or follow Tate & Lyle on X, Linkedin
(https://www.linkedin.com/company/tate-&-lyle) , Facebook
(https://www.facebook.com/TateandLyleCommunity) or YouTube
(https://www.youtube.com/c/TateLylePLC) .

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