Tate & Lyle Delivers a Resilient Performance in Q3 Fiscal-Year 2023; Shares Attractive

Narrow-moat Tate & Lyle, or T&L’s, third-quarter fiscal 2023 trading update tracked our expectations, with strong double-digit revenue growth for food and beverage solutions (accounting for around 90% of group revenue). This was driven mainly by the robust price increases aimed at passing on presently heady cost inflation. Sales volumes also displayed resilience despite the inflationary environment and contributed to the solid top-line result. T&L noted that the underlying volume growth in the quarter has been similar to the first half of the financial year where volumes grew 2% year on year. This is an encouraging sign that consumer demand for healthier, lower-calorie products has not dwindled—even for the more discretionary end-product markets in snacking and beverages—despite the significant inflation and pressure on disposable income.