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.
· 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
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.