26 January 2023 – Tate & Lyle PLC
TRADING STATEMENT
Tate & Lyle issues the following trading statement for the three months ended 31 December 2022.
Headlines
· Third quarter trading consistent with first half of the financial year
· Food & Beverage Solutions top-line momentum continues with revenue up 19%
· Positive outcome from the 2023 calendar year pricing round
· Outlook for the year ending 31 March 2023 unchanged
Nick Hampton, Chief Executive said:
“Tate & Lyle continues to perform well with Food & Beverage Solutions delivering another strong quarter of double-digit revenue growth. We have successfully renewed 2023 calendar year customer contracts to recover higher input costs and, despite ongoing economic uncertainty, we continue to deliver against our strategy as a growth-focused speciality food and beverage solutions business.”
| Three months ended 31 December 2022 | Revenue1 |
| Food & Beverage Solutions | +19% |
| Sucralose | (8%) |
| Group | +16% |
1 Growth in constant currency
Divisions
Food & Beverage Solutions
Revenue growth benefited from mix management, the pricing through of input cost inflation and acquisitions. In North America, we saw continued revenue growth despite supply chain disruption. Both the regions of Europe and Asia, Middle East, Africa and Latin America delivered strong double-digit revenue growth reflecting good commercial performance and mix management. Volume and revenue performance were similar to the first half of the financial year.
Sucralose
Revenue was 8% lower reflecting, as expected, the unwind of orders phased into the first half.
Primient minority holding
The operational challenges which impacted the first half of the financial year are being addressed, and the 2023 calendar year bulk sweetener pricing round is nearing completion with unit margins returning to pre-inflation levels.
Outlook for year ending 31 March 2023 is unchanged
We continue to expect:
· Revenue growth reflecting current top-line momentum
· To offset input cost inflation through strategic mix management, pricing, productivity and cost discipline
· Adjusted profit before tax to be in line with current market expectations2 with stronger profits in Food & Beverage Solutions offsetting lower profits from the minority holding in Primient.
2 Market expectations as per Factset on 25 January 2023
Capital markets event
A capital markets event will be held on Wednesday 8 February 2023 at 14.00 GMT. The event will be hosted by Nick Hampton, Chief Executive, and will outline Tate & Lyle’s strategy, business model, portfolio, markets, and science-led approach which puts it at the centre of the future of food. Registration details will be posted on our website at https://www.tateandlyle.com/investors-hub.
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