Tate & Lyle - Good underlying delivery as transitory headwinds mount

Davy Research
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Tate & Lyle’s FY 2020 results confirm good execution across the platform, with volume growth and operating leverage improving for value-add activities. FY 2021 will be impacted by COVID-driven demand challenges in the Foodservice channel, with the scale of the challenges yet to be reflected in consensus forecasts. It remains backboned by productivity measures and a strong financial structure. Unsurprisingly, given the macro uncertainty, management has withdrawn full-year guidance.