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Highlights

  • Tate & Lyle’s profit after tax rose by 11.0% YoY to GBP 122.00 million in Q3FY25
  • Earnings per share increased by 13.0% YoY, reaching 30.60 pence in 1HFY25
  • The company paid an interim dividend of USD 6.40 per share, marking a 3.2% rise from the previous year
  • Despite revised revenue projections, EBITDA growth is expected to remain within the lower end of the 4%-7% range for FY25

Tate & Lyle PLC (LSE:TATE) is a global food production company, established in 1903 and headquartered in London, United Kingdom. The company offers ingredients and solutions across food, beverage, and industrial sectors, with a widespread international presence.

In the first half of the financial year 2025 (1HFY25), Tate & Lyle reported a revenue of GBP 775.00 million, marking a 7.0% YoY decline, mainly due to the pass-through of input cost deflation weighted toward H1.

However, the company benefited from its share repurchase program. Profit after tax increased by 11.0% to GBP 122.00 million, while earnings per share rose by 13.0% to 30.60 pence.

Additionally, the company paid an interim dividend of USD 6.40 per share on 6 January 2025, with an ex-dividend date of 21 November 2024, representing a 3.2% increase from the previous year.

Recent Business Update

On 13 February 2025, Tate & Lyle released its third quarter of fiscal year 2025 (Q3FY25) trading statement for the three months ended 31 December 2024. The company successfully completed the acquisition of CP Kelco in November 2024. In its Food & Beverage Solutions segment, volume rose by 4%, driven by growth across all regions. However, revenue decreased by 4%, mainly due to the offsetting effect of lower input costs. Sucralose continued to perform well, benefitting from a pull-forward in customer orders, though a partial reversal is expected in Q4.

Company Outlook

Tate & Lyle’s forecast for the year ending 31 March 2025, indicates a tough yet stable path ahead. The company has revised its revenue projections, now expecting a decline in the mid-single digits, excluding CP Kelco and factoring in constant currency. However, EBITDA growth is anticipated to stay at the lower end of the previously predicted 4% to 7% range, highlighting consistent operational performance amid a more cautious market outlook.

Top 10 Shareholders

The top 10 shareholders of TATE together hold approximately 50.68% of the total shares in the company. The largest shareholder is J.M. Huber Corporation, owning around 16.84% of the shares, followed by Columbia Threadneedle Investments (UK) with a 9.00% stake.

Stock Information

The stock price of TATE has declined by approximately 13.14% over the past month and has faced a 15.29% decrease in the last six months. Its 52-week low and high are GBX 531.50 and GBX 848.50, respectively. As of 24 February 2025, the stock’s closing price is GBX 565.00.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 24 February 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.