Tate & Lyle Earnings: In-Line EBITDA Delivery and Further Step in Specialty Business Transformation

Narrow-moat Tate & Lyle reported full-year fiscal 2024 results broadly in line with our expectations and management’s guidance. Adjusted EBITDA was 2% ahead of the prior year, or 7% ahead in constant currency. The volume momentum started to improve in the fourth quarter as customer destocking ended and management saw some signs of ameliorating consumer confidence. Still, as previously guided, the high-single-digit input cost deflation started to add pressure to the top line in the fourth quarter as the company passed through some of the benefits to its customers. This will continue to weigh on the top line at least in the first half of fiscal 2025, although it should be partially offset by gradually improving volume momentum throughout the year. Overall, management guided for a slight decline in revenue and adjusted EBITDA growth in the range of 4% to 7% in fiscal 2025. The input cost deflation will benefit the bottom line, further supported by the ongoing productivity program.