Tate & Lyle Earnings: Makes Good Progress Improving EBITDA in Challenging Market Environment

Narrow moat Tate & Lyle reported first-half fiscal 2024 revenue of GBP 857 million and EBITDA of GBP 178 million, slightly above FactSet consensus that called for revenue and EBITDA of GBP 851 million and GBP 166 million, respectively. EBITDA was 7% higher in constant currency compared with the same period last year, driven by pricing actions, mix management, and cost savings. Management also shared their outlook for full-year fiscal 2024, expecting revenue slightly ahead of the prior year and EBITDA growth of 7% to 9%—in line with the year-to-date delivery and midterm guidance earlier this year. We do not expect to materially change our GBX 900 fair value estimate after incorporating these numbers. Shares are undervalued.