Global food supplier Tate & Lyle said in its latest full year statement that it had “successfully navigated challenging markets”, as it reported “strong productivity levels” and “excellent cash generation”.

In the year ended 31st March 2024, the supplier achieved adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) growth of 7%, with an adjusted EBITDA margin of 170 basis points.

Its adjusted revenue performance was £1,647 million and it achieved an adjusted profit before tax of £287 million. Revenue was down 2% on the year, which it attributed to “lower volume from soft consumer demand, customer destocking and prioritising margin”.

Tate & Lyle said it has “excellent cash generation” with cash conversion 23% higher to hit 85%, which the supplier said was “well ahead of target”.

Nick Hampton, chief executive of Tate & Lyle, said: “In challenging market conditions, it’s been another year of robust financial performance and strategic progress, with strong profit growth and productivity delivery, excellent cash generation and further progress to transform the business.

“The actions taken over the last six years have created a higher quality and more resilient business, with the agility to navigate the challenging economic environment and softer consumer demand we saw last year. While managing these short-term market dynamics, we also continued to set up the business for long-term growth by increasing investment in technology, innovation, solution selling and new capacity, and by intentionally moving away from low margin business. I am particularly pleased by our progress building our solutions business with customers, a core element of our strategy, with solutions new business wins continuing to grow.

“Our robust balance sheet, strong cash generation and the proceeds from the sale of Primient underpin our confidence to enhance shareholder returns through the share buyback programme, whilst retaining the flexibility to pursue both organic and inorganic growth opportunities. We are excited by Tate & Lyle’s future.”

Outlook

Tate & Lyle said it had “navigated the unprecedented cycle of inflation and volatile consumer demand well”, delivering a compound average growth rate of revenue of 11% and adjusted EBITDA of 10% for the three years ended 31st March 2024.

Looking ahead, the supplier expects good volume growth in the 2025 financial year, accelerating as the year progresses.

It said that “following a period of exceptional input cost inflation, we are now seeing input cost deflation and, as a result, revenue was lower in the second half of the 2024 financial year reflecting the pass through of lower costs”, and said this trend was expected to continue in the first half of the 2025 financial year.

For the year ending 31st March 2025, it expects revenue to be slightly lower than the prior year, while EBITDA is expected to grow between 4% and 7%.