Tate & Lyle (TATE) Trading Update summary

Operating performance and financials

• Achieved solid volume and EBITDA growth in Q3, with Food & Beverage Solutions volume up 4% across all regions.

• Group revenue declined 4% due to pass-through of input cost deflation, but Sucralose revenue rose 19% from strong customer demand.

• Sucralose delivered another record quarter, with some order pull-forward expected to unwind in Q4.

• Productivity savings advanced, supporting progress toward a US$150 million five-year target.

• Year-to-date and Q3 EBITDA growth remained positive.

Financial results and balance sheet

• Group revenue for the quarter was £423m, up 14% including CP Kelco; Food & Beverage Solutions revenue was £296m, down 4%.

• Sucralose revenue reached £41m, up 19%; Primary Products Europe revenue declined 24% to £20m.

• Cash generation remained strong, with cash conversion aligned with long-term goals.

• Completed a £215m share buyback and raised US$300m and €275m in private placement to refinance CP Kelco acquisition.

• Tax rate expected at 22%-23%, with stable financing following an oversubscribed US private placement.

Strategic developments and integration

• Completed acquisition of CP Kelco, accelerating growth strategy and expanding specialty portfolio.

• CP Kelco performed in line with expectations, showing strong volume and revenue growth, especially in pectin.

• Integration progressing well; full operational merger set for April 2025, with $50m cost synergy target by FY27.

• Customers are responding positively to the expanded solutions and innovation pipeline.

• Expanded global reach, now serving customers in over 120 countries with more than 5,000 employees.