REG - Tate & Lyle PLC - Trading Statement

Tate & LyleAnnouncement

25/07/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240725:nRSY7319Xa&default-theme=true

RNS Number : 7319X  Tate & Lyle PLC  25 July 2024

 

25 July 2024 - Tate & Lyle PLC

 

AGM STATEMENT AND TRADING UPDATE

 

Tate & Lyle PLC ('Tate & Lyle', 'the Group') will be holding its
Annual General Meeting in London later today.  In his address to
shareholders, Chief Executive Nick Hampton will comment:

 

"We have made a good start to the new financial year with trading in line with
our expectations.  It's encouraging to see volume momentum across the
business, and we continue to expect volume growth to accelerate as the 2025
financial year progresses.  Planning for the integration of Tate & Lyle
and CP Kelco is progressing well with both organisations excited about the
opportunity to deliver significantly greater value for customers and the
growth potential of the combined business.  We look forward to the future
with confidence."

 

Trading update for the three months ended 30 June 2024

·   Group performance in line with our expectations:

-   Food & Beverage Solutions volume, as anticipated, was ahead of the
comparative period, with revenue lower reflecting the pass through of input
cost deflation.

-   Sucralose delivered good revenue growth.

-   Group EBITDA ahead of the comparative period.

 

Acquisition of CP Kelco

·   On 20 June 2024, Tate & Lyle entered into an agreement to acquire
CP Kelco, a leading provider of pectin, speciality gums and other nature-based
ingredients for a total implied consideration of US$1.8 billion (approximately
£1.4 billion).

·   This acquisition significantly accelerates Tate & Lyle's strategy
as a leading and differentiated speciality food and beverage solutions
business, and the solutions partner of choice for customers.  The combined
business will be a leader in Mouthfeel solutions and will also provide a
stronger customer offering across our Sweetening and Fortification platforms,
and our four core categories.  Further details of the acquisition can be
found here
(https://www.tateandlyle.com/sites/default/files/2024-06/rns-combination-tate-lyle-and-cp-kelco-20-june-2024.pdf)
.

·   CP Kelco's financial performance in the first half of the 2024 calendar
year has stabilised as anticipated, with volume well ahead of the comparative
period.

·   Following the announcement by the Financial Conduct Authority on 11
July 2024 that the new Listing Rules will come into effect on 29 July 2024,
the requirement for a shareholder vote for significant transactions will no
longer apply.  We intend to comply with the new disclosure requirements for
significant transactions that were announced ahead of the rule changes.

·   Completion of the transaction remains conditional on receipt of
regulatory approvals and other customary conditions. We continue to expect
this will occur in the fourth quarter of the 2024 calendar year.

 

Progress on share buyback programme

·   On 20 June 2024, we commenced a £215 million on-market share buyback
programme to return the net cash proceeds from the sale of our remaining
interest in Primient to shareholders.

·   As at the close of business on 24 July 2024, a total of 6.7 million
shares have been purchased under this programme for a cost of £42 million and
are being held as treasury shares.

 

Outlook for year ending 31 March 2025 is unchanged (for standalone Tate &
Lyle, excluding CP Kelco)

·   We continue to expect to deliver in constant currency:

-   Revenue slightly lower than the prior year

-   EBITDA growth of between 4% and 7%.

 

END

 

 

For more information contact Tate & Lyle PLC:

Christopher Marsh, VP, Investor Relations

Mobile: +44 (0) 7796 192 688

 

Media

Nick Hasell, FTI Consulting

Tel: Mobile: +44 (0) 7825 523 383

Tel: Office: +44 (0) 203 727 1340

tate@fticonsulting.com (mailto:tate@fticonsulting.com)

 

 

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 3,300 employees working in around 58 locations serving
customers across

121 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 2024, Tate & Lyle revenue from continuing operations totalled £1.65
billion.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTQKQBBOBKDAOB