Tate & Lyle PLC has announced its full-year results for the period ending 31 March 2024, showcasing strong financial performance and strategic progress despite challenging market conditions. The completion of the Primient sale marks a significant milestone, transforming Tate & Lyle into a focused specialty food and beverage solutions business.

Highlights

• Adjusted EBITDA growth of 7%, with a margin increase of 170 basis points.
• Cash conversion surged to 85%, exceeding the target.
• Proceeds from Primient sale to be returned to shareholders via a share buyback programme.
• Continued investment in innovation and sustainability initiatives.

Financial Performance

Tate & Lyle reported a 2% decrease in revenue due to lower volume from soft consumer demand and customer destocking. However, adjusted EBITDA increased by 7%, benefiting from proactive mix management and cost discipline. The company also achieved a strong cash conversion rate of 85%, resulting in free cash flow of ￡170 million, which is ￡49 million higher than the previous year.

"Strong productivity performance with savings of US$41m delivered in first year of five-year ambition"."

Transformation to Specialty Business

The sale of the remaining interest in Primient for US$350 million in cash completes Tate & Lyle's transformation into a specialty food and beverage solutions business. The company intends to return the net cash proceeds from the sale to shareholders through a share buyback programme. This strategic move positions Tate & Lyle to capitalize on significant growth opportunities in providing solutions for healthier, tastier, and more sustainable food and drink.

Strategic and Operational Progress

Tate & Lyle continues to focus on its growth strategy by investing in innovation, solution selling, technology, and new capacity. The company has set new, more ambitious climate targets aligned with a 1.5°C trajectory, emphasizing its commitment to sustainability. Revenue from new business wins in the solutions segment increased by 3 percentage points to 21%.

CEO Statement

Nick Hampton, Chief Executive, stated: "In challenging market conditions, it’s been another year of robust financial performance and strategic progress, with strong profit growth and productivity delivery, excellent cash generation, and further progress to transform the business." He highlighted the company's agility in navigating economic challenges and its focus on setting up for long-term growth.

Outlook

Looking ahead, Tate & Lyle expects to see good volume growth in the 2025 financial year as customer destocking ends and consumer confidence improves. The company anticipates EBITDA growth of between 4% and 7% for the year ending 31 March 2025. Following the completion of the Primient sale, Tate & Lyle will no longer consolidate its profits.

"Therefore, for the year ending 31 March 2025, we expect to deliver in constant currency:"."

• "Revenue slightly lower than the prior year"
• "EBITDA growth of between 4% and 7%."

Forward-looking Statements

Tate & Lyle's management underscores the uncertainty inherent in forward-looking statements and advises caution. The company's guidance is based on reasonable assumptions but is subject to factors beyond its control, such as economic fluctuations, regulatory changes, and competitive actions.

Data Source: https://www.tateandlyle.com/sites/default/files/2024-05/fy24-presentation-23-may-2024-final.pdf