Volumes rose 6%, as did EBITDA and free cashflow up £48m, though revenue dipped 7% to £775m following restructuring costs.
New products revenue was up 10%, while new business from solutions were up 22% and all on the back of 9m tonnes of sugar removed from diets through increased low and no calorie sweeteners and fibres.
It was a “momentous six months” for the business, said CEO Nick Hampton in a briefing.
Tate & Lyle H1 2024 in numbers:
- £775m – revenue
- £188m – EBIDTA
- £156m – profit before tax
- £127m – free cash flow
- +13% – adjusted earnings per share
Its food and beverage solutions business saw volume sales up 4%, though revenues down 8% to £631m.
Sucralose volume sales were up 20% for the period, revenues +17% to £99m and EBITDA up to £33m.
The sale of the remaining 49.7% stake in the Premient joint venture added value to the business – completed at the end of June – with cash proceeds of $350m.
Tate & Lyle 2024 financial outlook
“The combination with CP Kelco, preceded by the sale of Primient, transforms our business into a fully-focused speciality food and beverage solutions business directly aligned to attractive structural and growing consumer trends for healthier, tastier and more sustainable food and drink,” said Hampton.
There was an air of realistic optimism from the business, which expected modest improvements in consumer sentiment to drive further sales. There was also improved demand from customers for innovation.
Volume growth would continue during the second half of the year, Tate & Lyle predicted. It would also benefit from further cost deflation as well as changes made to bolster productivity.
However, revenues were expected to be slightly lower for the full year (31 March 2025), but EBITDA would grow between 4% and 7%.
