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
Change1
|
|
3 months to
31 December 2023
|
9 months to
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
or follow Tate & Lyle on X, Linkedin,
Facebook
or YouTube.