Solid Fiscal 2023 Half-Year Result for Tate & Lyle Amid Rapid Portfolio Shift; Shares Attractive

Narrow-moat Tate & Lyle, or T&L, reported a robust fiscal 2023 half-year result featuring strong double-digit growth in revenue and adjusted operating profit. The pleasing result was primarily driven by the performance of the foods and beverage solutions business unit (around 90% of revenue), which delivered constant-currency growth of 21%. Strong contributions from price and mix shift drove the strong result. By contrast, volumes contracted by 8%, reflecting the planned transition of residual commodity products capacity in Europe to higher-margin specialty ingredients as well as other one-offs related to supply chain disruptions. Still, underlying volume development was positive at 2%, indicating the still-robust consumer demand for healthier, lower calorie products that use T&L ingredients and solutions.