Investors turn sour on Tate & Lyle
Food ingredients business Tate & Lyle's (TATE) recent third-quarter update (21 February) saw an 11% decline in its Food & Beverage Solutions business as it was hit by a mixture of customer destocking and weaker consumer demand.
Foreign exchange headwinds are also having a negative impact, while contracts for 2024 have been more competitive due to softer demand.
Berenberg analyst Samantha Derbyshire observes: ‘Tate has selectively given back some extra margin to customers where it has a strong collaboration relationship and visibility on volume growth, in order to secure volumes with them for 2024. This has likely added to extra pricing pressure.’
Important information:
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
Issue contents
Ask Rachel
Daniel Coatsworth
Feature
Great Ideas
Investment Trusts
News
- Easyjet flies high with promotion to the FTSE 100 as miners and energy slip
- Why convenience food giant Greencore has gained 12.3% year-to-date
- Can Nike get back on the front foot?
- Investors turn sour on Tate & Lyle
- UK financial regulator softens stance on digital currencies as Bitcoin surges to new high
- Darktrace hits 18-month high as hack threats increase