Tate & Lyle (AO) | Hold | FY results below expectations

研报英文原文证据摘录

Tate & Lyle (AO) | Hold | FY results below expectations

Tate & Lyle Hold | Target Price: 547p

Company description Management

Tate & Lyle is a North American-focused provider of ingredients and solutions to Nick Hampton, CEO

food and beverage companies, with a strong heritage in corn-derived products. It Sarah Kuijlaars, CFO

has a strong franchise in the area of sugar and calorie reduction and operates David Hearn, Chairman

through two business units: a Food & Beverage Solutions unit focusing on low- Key shareholders

sugar and high-fibre products, and Sucralose. In 2024, the company completed Free float 83.00%

the exit from its low growth and margin Primary Products unit and bought CP Huber 16.80%

Kelco for USD1.8bn. Ameriprise 5.50% Vanguard 5.30%

Investment case Valuation methodology

Organic growth acceleration. DCF with a 9% WACC and 2% long-term growth .

Deliver the synergies following the merger with CP Kelco and We use an EV/EBIT comparison its own historical valuation

growth the EBITDA margin. Risks to our rating

Renewed take-out speculation. The rerating may take much longer than we anticipate or not

Catalysts occur at all.

Reporting good and consistent organic growth as a new Cost inflation is affecting T&L at multiple levels. Although the

company. group has been successful in offsetting cost inflation in 2021-22

Increasing understanding of prospects for new company. and the CEO seems quite confident about the company’s ability

Delivery of the cost savings and top-line synergies related to the to raise prices, we cannot rule out a scenario in which such price

CPK deal. increases might not fully materialise.

A weak US dollar, with every one-cent change in the US dollar

having a GBP1-1.5m impact on PBT.

Key data charts