Key highlights
- Revenue growth +4%, with Food & Beverage Solutions (FBS) +5%
- Adjusted EBITDA +7%, driven by mix management, pricing, productivity and cost discipline
- Adjusted profit before tax +16%, strong FBS growth, increased Primient share of profit, lower finance charges
- Free cash flow1 £77m, £15m higher reflecting cash conversion of 69%, 14ppts higher
- Investment in innovation and solution selling 11% higher
- Solutions new business wins by value up 4ppts to 22% of pipeline
- Major investment underway in new capacity for dietary fibres at manufacturing facility in Slovakia
- 0.8p increase in interim dividend, up to 6.2p per share; reflecting one third of prior year full-year dividend
Nick Hampton, Chief Executive said:
“Tate & Lyle delivered a robust financial performance in the first half despite challenging market conditions and made good progress on its growth-focused strategy.
Food & Beverage Solutions performed well with double-digit profit growth. Revenue was higher benefiting from a combination of our focus on mix and margin expansion as well as the recovery of inflation, partially offset by softer consumer demand and customer de-stocking. In Sucralose, underlying customer demand remained steady with the lower first-half performance reflecting the phasing of orders in the comparative period.
To deliver our commitment to ‘Science, Solutions, Society’, we increased investment in innovation and solution selling, announced a major expansion of growth capacity for dietary fibres, and expanded the use of renewable energy across our operations. These investments strengthen customer partnerships and drive long-term growth.
The strategic re-positioning of Tate & Lyle to focus on speciality food and beverage solutions is enhancing the quality of the business and driving performance. Our strong ingredient portfolio and solutions capabilities in sweetening, mouthfeel and fortification mean we are well-placed to benefit from the long-term trends towards healthier, tastier and more sustainable food and drink.”
1. Revenue growth, adjusted EBITDA and adjusted EBITDA margin, share of adjusted profit of Primient, adjusted earnings per share, free cash flow, return on capital employed (ROCE), net debt and net debt to EBITDA are non-GAAP measures (see pages 8 to 11). Changes in adjusted performance metrics are in constant currency and for continuing operations
Outlook
We expect to deliver progress in-line with our five-year ambition to 31 March 2028 with revenue reflecting both strategic momentum and the impact of the expected pass through of input cost deflation in the second half. Therefore, for the year ending 31 March 2024, in constant currency, we expect to deliver:
- Revenue slightly ahead of the prior year; and
- EBITDA growth of 7% to 9%
We continue to expect stronger profits from our minority holding in Primient.
For more information contact Tate & Lyle PLC:
Christopher Marsh, VP Investor Relations
Tel: Mobile: +44 (0) 7796 192 688
Nick Hasell, FTI Consulting (Media)
Tel: Mobile: +44 (0) 7825 523 383
