Tate & Lyle: Revenue Guidance Reduced Due to Deflationary Pressure; Shares Attractive

Narrow-moat Tate & Lyle's third-quarter fiscal 2024 revenue was down 4% in constant currency, driven by continued volume pressure from soft consumer demand and customer destocking coupled with a reduced contribution from price increases. Although the volume decline has remained relatively constant in the third quarter compared with the first half of the fiscal year, approximately negative 8% across both periods for food and beverage solutions, input cost deflation has started to add pressure to the top line.