Transforming
Lives through the
Science of Food
Annual Report 2024
What we do
Tate & Lyle is a speciality food and beverage solutions
business – a global leader in sweetening, mouthfeel
and fortification. We create high-value speciality
ingredients and solutions that meet growing global
consumer demand for healthier and tastier food and drink.
Purpose-led business
Transforming Lives through the Science of Food is our purpose.
Today, the demand for more nutritious food and the desire to
live healthier lifestyles are greater than ever. Working with our
customers, we reduce calories, sugar and fat in their products, and
add fibre and protein, to make people’s favourite foods even better.
Every day, across the world, millions of people enjoy products
containing our ingredients and solutions.
Science Solutions Society
At Tate & Lyle, everything we do starts with these three things.
Our commitment to science, solutions and society comes from a deep
understanding of our purpose. Everything Tate & Lyle does is rooted in science.
It’s through research and development – our understanding of the science of food
– that we have the greatest impact on people’s lives, creating ingredients and
solutions that support healthier and more sustainable living.
Additional content
within the report
How to use this report
Throughout this report you will find
extra information, data and pointers
to additional insights, as denoted by
these icons.
Pointers to additional
external content
Introduction
2 A snapshot of Tate & Lyle
Strategic report
8 Chair’s statement
10 Chief Executive’s review
Our business
17 Our strategy
18 Our markets
19 The world around us
21 Our platforms
24 Our core categories
25 Our scientific and solutions
capabilities
26 Our business model
28 Our progress
Review of the year
32 Chief Financial Officer’s
introduction
34 Food & Beverage Solutions
35 Sucralose
35 Primary Products Europe
36 Group financial review
39 Innovation and Commercial
Development
40 Global Operations
41 Health and safety
44 Our people
50 Our communities
52 Environment
63 Risk report
73 Task Force on Climate-
related Financial
Disclosures
Governance
80 Board of Directors
83 Executive Committee
84 Corporate governance
100 Nominations Committee
Report
102 Audit Committee Report
108 Directors’ Remuneration
Report
127
Directors’ Report
129
D
irectors’ statement of
responsibilities
Financial statements
131 Independent Auditor’s
Report to the members
of Tate & Lyle PLC
138 Consolidated income
statement
139 Consolidated statement
of comprehensive income
140 Consolidated statement
of financial position
141 Consolidated statement
of cash flows
142 Consolidated statement
of changes in equity
143 Notes to the consolidated
financial statements
192 Parent Company financial
statements
Useful information
200 Group five-year summary
202 Additional information
202 Restatement of prior year
alternative performance
measures for treatment of
M&A-related costs
203 Information for investors
204 Glossary
IBC Definitions/explanatory
notes
ContentsReport highlights
Our scientific and solutions capabilities – page 25
The world around us – pages 19 and 20Chief Executive’s review – pages 10 to 15
Our three platforms – pages 21 to 23
Our people – pages 44 to 49 Environment – pages 52 to 62
1
Tate & Lyle PLC Annual Report 2024
Open any fridge or kitchen cupboard, in
any household, in practically any part of
the world, and you’re likely to find products
containing our ingredients and solutions.
A snapshot of
Tate & Lyle
Our business in numbers
1
People
3,318
employees
Sites
58
plants, offices and Customer Innovation and
Collaboration Centres
Labs
17
global network of Customer Innovation and
Collaboration Centres
Countries/customers
121
countries in which we serve customers
Corn wet mills
1
Lafayette, Indiana, US
Koog aan de Zaan, the Netherlands
Boleráz, Slovakia
Speciality starches
2
Van Buren, Arkansas, US
Houlton, Maine, US
Sucralose
McIntosh, Alabama, US
Fibre
Nantong, Jiangsu, China
Jiangmen, Guangdong, China
Tapio ca
Dan Khun Thot, Nakhon Ratchasima,
Thailand
Stevia
Anji, Zhejiang, China
Locust bean gum
Noto, Sicily, Italy
Blending
Six facilities in US, UK, Brazil,
South Africa, Italy and Australia
Our main production facilities
1 At 31 March 2024.
1 Corn wet mills produce a range of products including sweeteners, starches and fibres.
2 Speciality starches include corn, tapioca and potato; these plants do not have grind capacity and are not classified as corn wet mills.
Countries where we have sites
2
Tate & Lyle PLC Annual Report 2024
A snapshot of Tate & Lyle continued
Our performance
Financial
Environmental, social and governance
Group statutory results
1
Alternative performance measures
2
Revenue
2024 £1,647m
£1,751m
£1,375m
2023
2022
Adjusted EBITDA
3
2024 £328m
£322m
£237m
2023
2022
£1,647
m
£328
m
Profit before tax
2024 £226m
£152m
£42m
2023
2022
Adjusted diluted earnings per share
2024 55.5p
49.6p
40.4p
2023
2022
£226
m
55.5
p
Diluted earnings per share
2024 44.4p
30.8p
5.5p
2023
2022
Return on capital employed
2024 17.4%
17.6%
2023
16.9%
2022
44.4
p
17.4
%
Net debt
4
2024 £153m
£238m
£626m
2023
2022
Free cash flow
2024
£170m
£121m
2023
£76m2022
£153
m
£170
m
Environmental
11
%
reduction in Scope 1 and 2 absolute
greenhouse gas emissions
5
20
%
reduction in Scope 3 absolute greenhouse
gas emissions
5
12
%
electricity purchased for our operations from
renewable sources
4
%
increase in water use intensity
5
90
%
waste beneficially used
6
367,000
acres of sustainable corn supported
6
1 Continuing operations.
2 Adjusted EBITDA, adjusted diluted earnings per share, return on capital employed (ROCE) and free cash flow are non-GAAP
measures. Changes in adjusted performance metrics are in constant currency and for continuing operations (for definitions, see
Notes 1 and 4). 2023 comparatives restated to exclude other M&A costs of £2 million. 2022 comparatives for adjusted performance
measures are pro-forma financial information, restated for M&A costs of £4 million. See ‘Additional information’.
3 Earnings before interest, tax, depreciation and amortisation.
4 Net debt is not itself defined by IFRS. It comprises line items
that are IFRS-defined terms. See Note 28.
5 From baseline of year ended 31 December 2019.
6 In the year ended 31 December 2023.
7 From baseline of 31 March 2020.
8 At 31 March 2024.
Social
7.9
m
tonnes of sugar removed from diets through
low-/no-calorie sweeteners and fibres
7
4.2
m
meals donated through food banks
and other charitable partners
7
45
%
women in leadership and
management roles
8
Governance
50
%
Board of Directors are women
8
56
%
Executive Committee are women
8
3
Tate & Lyle PLC Annual Report 2024
Science
Learning
We’re a team of food scientists, food experts and food lovers.
From the lab to the kitchen, our creativity is constantly
pushing the boundaries of food innovation.
Read more about our
scientific capabilities
on pages 25 and 39
Creating
4
Tate & Lyle PLC Annual Report 2024
Partnering
Read more about our
solutions expertise on
pages 21 to 25
Innovating
Solutions
We’re innovators and collaborators. Through our expertise in
sweetening, mouthfeel and fortification, we are relentlessly
solving challenges and partnering with our customers to
make tasty food healthier and healthy food tastier.
5
Tate & Lyle PLC Annual Report 2024
Read more in our
environment report on
pages 52 to 62
Restoring
Society
All our ingredients come from the natural world, whether it’s
a leaf of stevia, a kernel of corn, or a grain of tapioca.
That’s why we care for our planet’s natural resources, and
help to build a more sustainable world.
Protecting
6
Tate & Lyle PLC Annual Report 2024
Strategic report
In this section
8 Chair’s statement
10 Chief Executive’s review
Our business
17 Our strategy
18 Our markets
19 The world around us
21 Our platforms
24 Our core categories
25 Our scientific and solutions
capabilities
26 Our business model
28 Our progress
Review of the year
32 Chief Financial Officer’s
introduction
34 Food & Beverage Solutions
35 Sucralose
35 Primary Products Europe
36 Group financial review
39 Innovation and Commercial
Development
40 Global Operations
41 Health and safety
44 Our people
50 Our communities
52 Environment
63 Risk report
73 Task Force on Climate-related
Financial Disclosures
Strategic report Governance Financial statements Useful information
7
Tate & Lyle PLC Annual Report 2024
I am delighted to have been appointed
Tate & Lyle’s new Chair at an exciting time
forthe company.
On behalf of the Board I’d like to thank my predecessor, Dr Gerry
Murphy, for his inspirational leadership in guiding the business
over the last seven years as Chair, during a time of great change
and growth for the company.
What the team has achieved since the separation of Tate & Lyle
and Primient – led by Gerry and our Chief Executive Nick
Hampton – is outstanding. Together, they have built a science-
led, customer-focused business that is right at the centre of the
future of food. There’s more to do, but what’s become clear in my
first months as Chair is that we have a really exciting opportunity
ahead of us and a strategy that is clearly designed to meet it.
Having worked in the food industry for much of my career, I can’t
think of a better brief than to work alongside my fellow Board
members and a talented executive team to help steer Tate & Lyle
through the next phase of its transition.
Good results under difficult circumstances
As Nick explains in his review, it’s not been an easy year as we
faced a number of difficult challenges including considerable
economic volatility and the cost-of-living crisis. Despite this,
the business delivered another set of good financial results,
balancing the top line and margin while continuing to invest in the
future. It’s testament to the sound commercial judgement and
agility of our people that Tate & Lyle has continued to navigate so
many challenges, while running its plants smoothly and serving
its customers reliably.
A company with a strong culture and values
Performance aside, what has struck me most in my first few
months as Chair is the strength of Tate & Lyle’s culture and its
belief in its purpose of Transforming Lives through the Science of
Food. It’s easy for a company to say that it cares about the planet
and its people, that it lives by certain values and acts responsibly
– and plenty do. But it’s rare to find a company where those
Chair’s statement:
Strong foundations
for long-term growth
David Hearn \ Chair
8
Strategic report
Tate & Lyle PLC Annual Report 2024
statements are genuinely fundamental to the way it does
business. Tate & Lyle is one of them. We have an executive team
that personally engages in these issues, setting tough targets
in key areas like carbon emissions, water and waste, and
impressive sustainable agriculture programmes with both
an environmental and a social purpose.
A key part of our purpose is a commitment to build stronger,
more equitable and inclusive communities where we work and
live. During visits to some of our sites in the US and Slovakia, I met
teams that don’t just say they’re committed to equity, diversity
and inclusion, but positively thrive on it. What I saw consistently
was a mutual respect for the differences that people can bring to
a team, and the benefits that this attitude brings to the business
as a whole.
A commitment to science and technology
A strong culture only gets you so far, though. A company also
needs to have the capabilities, technology and know-how to be
successful. We’ve got a strong operational base, and we’re well
on the way to building the capabilities we need to be a world-
class solutions business in our chosen platforms and categories.
Take stevia, for example. This plant-based sugar alternative is
one of the world’s fastest growing low-calorie sweeteners, but it
has challenges, including a bitter taste. Our researchers and food
scientists are tackling and solving those challenges to create
healthier, tastier stevia-based ingredients for our customers.
Investing heavily in research and development, as Tate & Lyle
does, is critically important as the world looks to feed a growing
global population in a way that doesn’t harm our planet but still
meets the needs of modern lifestyles. The only way we will do
this
is by taking nature’s products and applying science to create
innovative ways to produce more nutritious, affordable and
sustainable food. That is what Tate & Lyle does best, and it’s
why I am so excited about the future potential of the business.
An experienced Board supporting a strong
executive team
Of course, the Board has an important role to play in all this and
I’m proud to be joining such a diverse and talented group of
people. For example, we represent a broad range of ages,
backgrounds, experiences and mindsets, which brings a natural
diversity of thought. This ensures rich discussion when it comes
to carrying out our primary duty – supporting and challenging the
executive team.
As your new Chair, I can’t think of a better
brief than joining the team to help steer this
global food and beverage solutions business
through the next phase of its transition.
Getting the right balance between support and challenge is
critical. We’re blessed with a talented executive team, led by a
highly experienced Chief Executive. Given all that, it’s essential
we avoid second guessing our executives, and instead give them
the support and encouragement to keep driving the business
forward. That doesn’t mean we stop asking the important
questions, simply that we do so in a manner that enables us to
explore all the options together, to arrive at the best solutions.
It’s equally important that the Board understands and balances
the perspectives of different stakeholders. Our employees are
particularly important, since we can’t achieve any of our goals
without them. Having been a chief executive for a good part of
my career, I have spent a lot of my time on site visits. In doing so,
you develop a certain sensitivity to what is really occurring in a
business. And what I have felt, whether in a leadership
presentation, or a conversation on the shopfloor, is a genuine
sense of team collaboration and support for one another,
underpinned by a refreshing level of openness. All too often,
people can be wary of speaking their mind when talking to senior
leaders, but I’ve seen none of that at Tate & Lyle.
Boards evolve over time, and during the year we said goodbye to
two directors. Dr Gerry Murphy, my predecessor as Chair, left the
Company in August, and Paul Forman, our Senior Independent
Director, retired in December. He was replaced as Senior
Independent Director by Kim Nelson. In April 2024, Jeff Carr, a
former Chief Financial Officer of Reckitt Benckiser Group plc,
joined the Board as a non-executive director. And reflections on
the Board for the year would not be complete without thanking
Warren Tucker who served so ably as interim Chair between
September and December 2023.
In April 2024, it was announced that Dawn Allen would be leaving
the Company in October to take up a new position as Chief
Financial Officer of Haleon plc. On behalf of the Board, I would like
to thank Dawn for her significant contribution to Tate & Lyle and
we wish her all the best in her new role. A process to appoint a
successor to Dawn is underway.
Everything Tate & Lyle has achieved this year is down to the hard
work of our people across the Group, and I would like to thank
them all for their skill and commitment.
Looking ahead
This is a fantastic company with an extraordinary sense of
purpose. It has incredibly talented, passionate people and a clear
strategy that is working well. I am excited about the future of the
company and, together with my Board colleagues, look forward
to playing our part.
David Hearn
Chair
Chair’s statement continued
Dividend
Tate & Lyle has a strong and consistent track record of
paying dividends to shareholders. In the context of our
growth-focused strategy, the Board operates a
progressive dividend policy.
The Board is recommending a final dividend of 12.9p per
share, bringing the total dividend for the year ended
31 March 2024 to 19.1p per share, an increase of 3.2%.
This will be paid on 2 August 2024 to shareholders on
the Register on 21 June 2024.
19.1
pence per share
Full-year dividend
Strategic report Governance Financial statements Useful information
9
Tate & Lyle PLC Annual Report 2024
We showed considerable agility and
resilience in navigating difficult market
conditions to deliver a strong profit and
cash performance.
The last year was undoubtedly a challenging one. We faced
continued inflationary pressures, while the cost-of-living crisis
drove softer consumer demand and customer destocking.
Ongoing geopolitical turmoil also caused disruption to an already
volatile economic environment.
But if I’ve learnt anything in my time as Tate & Lyle’s Chief
Executive, it is the extraordinary commitment that our people
show in tough times. It is thanks to their passionate belief in the
future of our business and our purpose of Transforming Lives
through the Science of Food that we have had another year of
strong financial performance and strategic progress. We met
our profit target, expanded our portfolio, continued to invest in
innovation and solution selling, added growth capacity and
significantly advanced our sustainability programme. That
we have been able to do all of this in a year of considerable
challenges is a sign of the quality of our people, the resilience of
our business, and the strong focus on our customers, innovation,
productivity and cost discipline instilled across the business.
A strong financial performance
Looking at the year’s results, we performed well with good profit
growth and very strong cash generation. In constant currency,
Group revenue was 2% lower, adjusted EBITDA grew by 7% and
adjusted diluted earnings per share were up 18%. Free cash flow
increased by £49 million to £170 million, and we delivered
US$41 million of productivity savings. Food & Beverage Solutions
performed well with revenue slightly below the prior year and
adjusted EBITDA up 8%. The underlying performance of the
Sucralose business remained steady, with EBITDA 4% lower than
the prior year. The optimisation of Primary Products Europe is
continuing with losses significantly reduced.
Following consecutive periods of high inflation in input costs,
which significantly accelerated revenue growth, we are now
seeing deflation in those costs. Softer consumer demand,
customer destocking and our intentional focus on margin
expansion ahead of volume, combined to deliver lower volume
in the year. Revenue was also lower after the benefit of mix
management and the recovery of inflation.
Chief Executive’s review:
Another year of strong
strategic progress
Nick Hampton \ Chief Executive
10
Strategic report
Tate & Lyle PLC Annual Report 2024
Five-year financial ambition:
To 31 March 2028
Revenue
Ambition 2024 performance¹
4-6
%
(2)
%
growth per annum lower
Adjusted EBITDA
3
Ambition 2024 performance¹
7-9
%
7
%
growth per annum growth
Organic return on capital
employed
4
Ambition 2024 performance¹
up to
50
bps
40
bps
average increase per
annum
increase
Productivity
2, 5
Ambition 2024 performance¹
$150
m
$41
m
savings over five years savings
1 Year ended 31 March 2024.
2 US dollars.
3 Changes in adjusted performance metrics are in constant currency
and for continuing operations (for definitions see Notes 1 and 4).
Comparatives have been restated, see Additional information.
4 Organic return on capital employed excludes the impact of
acquisitions.
5 Ambition of US$100 million announced in February 2023 increased
to US$150 million in May 2024.
For our joint venture, Primient, our adjusted share of profit was
53% higher at £35 million. Performance improved, supported
by robust demand for sweetener products, strong customer
contracting in 2023 and 2024 and improved operational
performance, while increased interest rates drove finance
charges higher. Tate & Lyle received US$74 million in cash
dividends from Primient in the year.
Investing for long-term growth
Over the last two years, we have repositioned Tate & Lyle to
be right at the centre of the future of food, focused on creating
solutions that meet growing consumer demand for healthier,
tastier and more sustainable food and drink. This is starting to
show real benefits.
During the year, solutions revenue from new business wins
increased by 3ppts to 21%, and revenue from New Products
coming out of our innovation pipeline increased by 13% on a
like-for-like basis. We launched nine new products into the
market including TASTEVA
®
SOL Stevia Sweetener. At 200
times more soluble than alternatives on the market, this
patent-protected extension to our stevia line is particularly
useful in beverage concentrates, dairy fruit preparations and
sweet syrups.
Our science-led approach is at the heart of our growth agenda.
During the year, we added 61 patents to our portfolio, bringing the
total to over 540 patents granted with more than 220 pending.
We also increased investment in innovation and solution selling
by 5%, in areas such as new customer-facing labs, new
technology, and to strengthen our capabilities in sensory and
open innovation. For example, in June 2023, we opened a new
Customer Innovation and Collaboration Centre in Jakarta,
Indonesia, increasing our global network to 17. We also continued
to invest in growth capacity with new capacity for non-GMO
PROMITOR
®
Soluble Fibres at our facility in Boleráz, Slovakia,
coming online in May 2024.
By taking a solutions-led approach, our research and
development and commercial teams are proactively identifying
gaps in the market where we can offer customers something
new. One example is the rapidly growing nutritional gummies
market in the US. More and more consumers are turning away
from vitamin pills in favour of gummies, particularly for children.
The problem is that many of them are high in sugar, so we saw an
opportunity to develop a reduced-sugar solution for gummies
that retains the essential, appealing texture without the calories.
Our solution has received considerable customer interest and
trials are underway.
But the biggest indicator that we’re on the right track is what our
customers tell us. During the year, we carried out our second
annual brand equity survey in which around 500 customers and
prospective customers were asked what they think about
Tate & Lyle. The results were encouraging with 81% seeing us as
a leader in ingredient innovation and 80% seeing us as a leader
in sustainability. Importantly, our net promoter score, which is a
measure used to gauge customers’ loyalty, satisfaction and
enthusiasm, was even more positive this year at 61, compared
with 52 last year. This gives me great confidence that the new
Tate & Lyle is increasingly seen as a valued innovation and
growth partner for our customers, as well as an attractive partner
for prospective customers. The way we have reshaped and
focused the business is clearly resonating strongly.
Acquisitions are an important part of our growth strategy. Three
of our last four acquisitions have been in Asia – a key growth
market for us – where most of the world’s population lives, and
which is driving many of the consumer trends we’re seeing in the
food and beverage industry. With China finally opening up after
the pandemic, I was pleased to get the chance to visit China for
the first time since 2019, including our latest acquisition, Quantum
Hi-Tech. What I saw was a really impressive business that
significantly strengthens our fortification platform and our
position as a leading global player in the fast-growing dietary
fibres market.
Using digital technology to help customers
Part of our strength in innovation comes from the investments we
are making to become a more digitally enabled company. This is
helping our people access higher-quality data faster, enabling us
to make more informed decisions and deliver ingredients and
solutions to our customers more quickly. In doing so, we can
also free up our people from important but time-consuming
administrative tasks to become more creative in the way we
deliver those solutions.
For example, our scientists in the US are using AI for predictive
modelling of sensory and other data to develop targeted recipes
for customers, while in our lab in Singapore, we’ve installed a new
robotics system with predictive modelling capabilities which can
run characterisation tests ten times faster than our old system
(see page 13). The effective use of technology is helping us
develop new solutions more quickly and increase our customers’
speed-to-market.
Chief Executive’s review continued
Strategic report Governance Financial statements Useful information
11
Tate & Lyle PLC Annual Report 2024
Chief Executive’s review continued
Our growth framework
We deliver our strategy through our growth framework, which is based on four pillars
with serving customers at the core. We have been pursuing this framework over the
last five years, successfully driving growth across the business.
Key growth enablers
CultureTal entGlobal supply chainSolutions capability Science and technical know-how
Increase investment in R&D
Expand open innovation
Leverage scientific knowledge
Build on existing strong platforms
Expand into new platforms
Deliver value-enhancing acquisitions
Build category insight
Strengthen customer intimacy
Enhance formulation expertise
Grow above market in
developed markets
Accelerate growth in large,
fast-growing markets of Asia,
Middle East, Africa and Latin America
P
o
r
t
f
o
l
i
o
e
x
p
a
n
s
i
o
n
A
c
c
e
l
e
r
a
t
e
i
n
n
o
v
a
t
i
o
n
I
n
t
e
g
r
a
t
e
d
s
o
l
u
t
i
o
n
s
M
a
r
k
e
t
f
o
c
u
s
Customers
12
Strategic report
Tate & Lyle PLC Annual Report 2024
Pursuing performance with purpose
Everything we do at Tate & Lyle is rooted in our purpose and in
our commitment to science, solutions and society, placing us
right at the centre of the future of food. One topic that has seen
increasing attention over the last year is how food is made and its
level of processing. Processed food has a critical role to play in
feeding a growing global population sustainably, affordably and
with better nutrition, and the debate about processed food runs
the risk of diverting attention away from the importance of a
food’s nutritional quality. In many cases, food lacks nutritional
value not because it’s been processed but because of what it
contains – high levels of sugar, calories and fat, and not enough
fibre and micronutrients. And that is where Tate & Lyle comes in.
Through our three platforms – sweetening, mouthfeel and
fortification – we create ingredients and solutions for our
customers that improve the nutritional profile of their products
by reducing sugar and calories, and by adding fibre and protein.
We also improve texture and mouthfeel, provide stability across
a product’s shelf-life, and where necessary optimise cost. And
since all our ingredients and solutions start life in the natural
world, we make them in ways that aim to reduce our impact on
the planet.
That’s why, as well as science and solutions, the third element of
our brand commitment – society – is a key part of our business.
Focusing on society means making sure that as we grow, we do
so in ways that have a positive impact on the world around us,
which we articulate through the three pillars of our purpose:
supporting healthy living, building thriving communities and
caring for our planet.
I have long believed that purpose and performance go hand-in-
hand: our purpose is critical to the long-term success and health
of our company. It is how we can play a role in helping the world
feed a growing population more healthily and sustainably, and it
continues to inspire our people and resonate with our customers.
For example, since 2020, we’ve removed 7.9 million tonnes of
sugar from people’s diets through our low- and no-calorie
sweeteners and fibres, and provided 4.2 million meals to people
in need, through our charitable and food bank partnerships.
We’ve also made really good progress with our equity, diversity
and inclusion agenda, particularly gender diversity. In 2020,
women represented just 27% of our senior managers. Today, that
figure is 45%, while women make up 56% of our Executive
Committee. Our growing network of employee resource groups is
essential to supporting our diversity and inclusion agenda, and it’s
been encouraging to see them taking an increasingly active role in
helping our HR team to develop policies and processes that will
support our growth in an inclusive way.
Playing our part in tackling climate change
Feeding a growing population well requires all of us in the food
industry to play our part in tackling climate change. Agriculture
and food production are essential to humanity, but they’re also
responsible for around one third of the planet’s greenhouse
gas (GHG) emissions. Human activity and over-reliance on
unsustainable farming practices have also had a detrimental
impact on our natural habitats and biodiversity.
This has to change – and it’s why we’re committed to becoming
a net zero business by 2050. I was delighted that, in May 2024,
we announced a significant increase in our climate ambition with
new Scope 1 and 2 and Scope 3 GHG emissions targets to 2028.
These targets have been validated as science-based by the
Science Based Targets initiative and are aligned to a 1.5ºC
trajectory, in line with the goal of the Paris Agreement.
One of the reasons we have set new climate targets to 2028 is
because we have made strong progress against our previous
targets to 2030. Since 2019, we have reduced our Scope 1 and 2
GHG emissions by 11% helped by purchasing more electricity
from renewable sources. Our Scope 3 GHG emissions have
reduced by 20% since 2019, exceeding our target of a 15%
reduction by 2030, seven years ahead of schedule. This
reduction has been helped in large part by our sustainable
agriculture programmes for corn in the US and stevia in China.
Sustainable agriculture is at the heart of solving the challenge of
feeding a growing global population affordably and nutritiously,
while relieving the pressure on natural resources already under
threat from climate change. The practices and processes of this
type of farming can transform soil health, increasing the amount
of carbon captured from the atmosphere and improving the
resilience of crops. Regenerative practices also contribute to the
overall health of local ecosystems by improving watershed
quality and supporting greater biodiversity. We continue to meet
our commitment to support acres of sustainable corn equivalent
to the total acreage of corn we buy each year (367,000 acres
in
2023).
Chief Executive’s review continued
Investing in technology
A key part of our innovation approach is
investing in new technology to improve our
product offering and increase our customers’
speed-to-market. In our Customer Innovation
and Collaboration Centre in Singapore, we
have installed a new automated lab that
combines new technology with the expertise
of our people to significantly enhance the way
we can address mouthfeel challenges in our
customers’ products.
The automated lab has a robotics system
that can run characterisation tests at around
ten times the prior rate, and also has enhanced
predictive modelling and prototyping capabilities.
The system enables our scientists to assess the
chemistry, performance and customer benefits
of new mouthfeel solutions with much greater
efficiency. And, while this new technology is
located in Singapore, it can be used remotely
by our other labs across the world to support
our customers.
Strategic report Governance Financial statements Useful information
13
Tate & Lyle PLC Annual Report 2024
Chief Executive’s review continued
United Nations Sustainable Development Goals (UN SDGs)
We focus on five of the UN SDGs that most closely align to our
purpose and are where we can have most impact.
SDG 2 Zero hunger
SDG 3 Good health and wellbeing
SDG 5 Gender equality
SDG 12 Responsible consumption and production
SDG 13 Climate action
To demonstrate our support for the UN SDGs, we are a
participating member of the UN Global Compact, a major global
sustainability initiative.
Our purpose of Transforming Lives through
the Science of Food is why we do what we do.
It guides every decision we make and every
action we take.
Supporting healthy living
We help people make healthier and tastier
choices when they eat and drink, and lead more
balanced lifestyles.
Building thriving communities
We help build thriving communities where we operate,
and support people to achieve their potential.
Caring for our planet
We care for our planet and help protect its natural
resources for the benefit of future generations.
C
a
r
i
n
g
f
o
r
o
u
r
p
l
a
n
e
t
S
u
p
p
o
r
t
i
n
g
h
e
a
l
t
h
y
l
i
v
i
n
g
P
r
e
v
e
n
t
i
n
g
P
r
o
g
r
e
s
s
i
n
g
S
u
p
p
o
r
t
i
n
g
h
u
n
g
e
r
e
q
u
i
t
y
,
d
i
v
e
r
s
i
t
y
e
d
u
c
a
t
i
o
n
a
n
d
i
n
c
l
u
s
i
o
n
I
m
p
r
o
v
i
n
g
E
n
c
o
u
r
a
g
i
n
g
P
r
o
m
o
t
i
n
g
l
i
f
e
s
t
y
l
e
s
w
e
l
l
b
e
i
n
g
n
u
t
r
i
t
i
o
n
b
a
l
a
n
c
e
d
p
e
r
s
o
n
a
l
e
m
i
s
s
i
o
n
s
b
e
n
e
f
i
c
i
a
l
l
y
l
e
s
s
w
a
t
e
r
a
g
r
i
c
u
l
t
u
r
e
a
n
d
c
a
r
b
o
n
w
a
s
t
e
U
s
i
n
g
s
u
s
t
a
i
n
a
b
l
e
C
l
i
m
a
t
e
U
s
i
n
g
S
u
p
p
o
r
t
i
n
g
B
u
i
l
d
i
n
g
t
h
r
i
v
i
n
g
c
o
m
m
u
n
i
t
i
e
s
Transforming
Lives through
the Science
of Food
To find out more about our purpose and how
we are delivering against our commitments
and targets, see pages 30 and 31 and visit
www.tateandlyle.com/purpose
Chief Executive’s review continued
14
Strategic report
Tate & Lyle PLC Annual Report 2024
Sale of remaining interest in Primient
Over the last six years, Tate & Lyle has been executing a major
strategic transformation to become a growth-focused speciality
food and beverage solutions business. This transformation has
included a much sharper focus on customers and categories,
increased investments in innovation and solution selling
capabilities, and significantly strengthening our sweetening,
mouthfeel and fortification platforms through new product
development and acquisitions.
A critical step in this transformation journey was the sale, in
April 2022, of a controlling interest in Primient. Then, in May 2024,
we announced that we had reached an agreement to sell our
remaining 49.7% interest in Primient to KPS Capital Partners, its
majority owner. Under the agreement, Tate & Lyle will receive
gross cash proceeds of US$350 million (c.£279 million), payable
at completion which is anticipated by the end of July 2024.
Net cash proceeds, after tax, are expected to be around
US$270 million (c.£215 million). The robust long-term agreements
between Tate & Lyle and Primient put in place in April 2022 to
ensure supply security, with a remaining life of around 18 years,
will continue to operate following the sale.
With this sale, the transformation of Tate & Lyle into a fully-
focused speciality food and beverage solutions business is
complete. We are now well-positioned to capture the significant
growth opportunities ahead as we look to provide our customers
with the solutions they need to meet growing consumer demand
for healthier, tastier and more sustainable food and drink.
Share buyback programme
Consistent with the Board’s capital allocation policy, the Board
intends to return the net cash proceeds received from the
Primient sale to shareholders by way of an on-market share
buyback programme. The buyback is expected to commence
on completion of the Primient sale.
Looking ahead
With more than half the world’s population taking part in elections
this year and ongoing geopolitical tensions, we’re likely to see
more uncertainty and volatility in the year ahead, which will bring
new challenges for our supply chains, customers and consumers.
As we have shown over the last two years, I am confident in our
ability to navigate short-term challenges and continue to pursue
our longer-term ambitions.
Tate & Lyle today is a vibrant, resilient company, with a compelling
purpose, a clear strategy and a strong balance sheet – and that’s
in no small part thanks to our former Chair, Dr Gerry Murphy.
Since I became Chief Executive in 2018, Gerry has been an
unfailing support, leading us through the ambitious separation
into two businesses, Tate & Lyle and Primient. I know I speak for
all of the Executive Committee in saying how grateful we are to
Gerry for his support and guidance, including through the
challenging years of the pandemic.
In saying farewell to Gerry, I’m also delighted to welcome our new
Chair, David Hearn, who brings a wealth of experience in the food
and beverage industry and a fresh perspective on how we can
take Tate & Lyle forward and realise our ambitions. I look forward
to working with David, the Board and all our people, customers
and partners in using the power of science to create the solutions
that will meet growing consumer demand for healthier, tastier and
more sustainable food and drink.
Nick Hampton
Chief Executive
Chief Executive’s review continued
More ambitious climate targets
Climate change is the biggest challenge facing
our planet, and we are committed to playing
our part on climate action. In May 2024, we
announced ambitious new targets to reduce our
greenhouse gas (GHG) emissions in line with
reductions required to limit global warming to
1.5ºC above pre-industrial levels. These targets
have been validated as science-based by the
Science Based Targets initiative. Under our
2028 targets, from a 2019 baseline, we’re
committing to reduce, in absolute terms:
Energy and industrial
• Scope 1 and 2 GHG emissions by 38%
1
• Scope 3 GHG emissions by 38%.
Forests, land and agriculture (FLAG)
•
S
cope 3 FLAG emissions by 23%
2
• We are also committing to no deforestation
across our primary deforestation-linked
commodities by 31 December 2025.
These new targets replace our existing Scope 1
and 2 and Scope 3 GHG emissions targets to
2030. Progress against our 2030 targets is set
out in this Annual Report. We will report
progress against our new 2028 targets in the
Annual Report 2025.
1 The target boundary includes land-related emissions and
removals from bioenergy feedstocks.
2 The target includes FLAG emissions and removals.
Outlook for 2025 financial year
We have navigated the unprecedented cycle of inflation and
volatile consumer demand well, delivering a compound
average growth rate of revenue of 11% and EBITDA of 10% for
the three years ended 31 March 2024.
Over the last year, we have prioritised revenue and margin
ahead of volume growth. Looking ahead, we expect to grow
from this new base and, with the end of customer destocking
and consumer confidence gradually improving, we expect
good volume growth in the 2025 financial year, accelerating
as the year progresses.
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. This is expected to continue
in the first half of the 2025 financial year.
Therefore, for the year ending 31 March 2025, we expect to
deliver in constant currency:
• Revenue slightly lower than the prior year
• EBITDA growth of between 4% and 7%.
Following completion of the sale of Primient, we will no
longer consolidate its profits.
Strategic report Governance Financial statements Useful information
15
Tate & Lyle PLC Annual Report 2024
Our business: what we
do and how we do it
Tate & Lyle is a growth-focused speciality
food and beverage solutions business – a
global leader in sweetening, mouthfeel and
fortification. We create high-value speciality
ingredients and solutions that meet growing
global consumer demand for healthier, tastier
and more sustainable food and drink.
Our ingredients and solutions are used in small quantities,
but play a crucial role in adding specific functionality, nutrition
and health benefits to our customers’ products. We combine our
understanding of consumer trends and food and beverage
categories with leading-edge science and technical expertise to
develop new products, and reformulate existing ones, to make
food and drink healthier and still taste great.
Reformulation sounds simple, but it’s far more complicated
than just swapping one ingredient for another. Taste, texture,
mouthfeel, shelf-life, stability – all these have to be taken into
account when reformulating food and drink in our global
network of labs, which we call Customer Innovation and
Collaboration Centres.
Taste is inherently local, which means that food and drink also
need to be adapted to different regions and countries. Through
our three platforms of sweetening, mouthfeel and fortification; our
portfolio of sweeteners, starches, fibres and stabilisers; and our
technical expertise in our core categories – dairy; beverage;
soups, sauces and dressings; and bakery and snacks – we
deliver solutions for our customers in their local markets.
The next pages explain what we do and how we do it.
1. 2. 3. 4. 5. 6. 7. 8.
Our strategy for
growth is built
on leading
positions…
in large and
attractive
markets…
driven by
increasing
global
demand for
healthier food
and drink.
We meet
this demand
through
three
platforms...
focused on
four core
categories…
underpinned
by our leading
scientific and
solutions
capabilities.
This is
summed up
in our
business
model…
with performance
measured
by our KPIs and
progress towards
our purpose
targets.
Pages 28 to 31Pages 26 and 27Page 25Page 24Pages 21 to 23Pages 19 and 20Page 18Page 17
16
Strategic report
Tate & Lyle PLC Annual Report 2024
Our strategy Our markets The world around us Our platforms Our core categories Our scientific capabilities Our business model Our progress
Our strategic focus
A leading and differentiated speciality
food and beverage solutions business
Our platforms
Our core categories
Sweetening Mouthfeel Fortification
• Beverage
• Dairy
• Soups, sauces
and dressings
• Bakery and
snacks
Sweetening
#1
sugar and calorie reduction
Mouthfeel
#2
texture and stability
Fortification
#1
fibre fortification
Our strategy for growth is built on
leading positions…
Our platforms
Our strategy Leading market positions
Based on our leading market positions and scientific and
solutions capabilities, we strive to be a leading and differentiated,
speciality food and beverage solutions business, delivering
sweetening, mouthfeel and fortification across our four
core categories.
We have leading market positions in each of our three platforms
of sweetening, mouthfeel and fortification. Just as importantly,
our ability to formulate across the intersection of all three
provides our customers with a unique proposition as they look
to make their products healthier, tastier and more sustainable.
Sweetening – page 21
Mouthfeel – page 22
Fortification – page 23
Strategic report Governance Financial statements Useful information
17
Tate & Lyle PLC Annual Report 2024
The global speciality food ingredient market is
worth US$75 billion
1
and is expected to grow
at around 6%
1
on a compound annual basis.
Large and attractive addressable market
Within the global speciality food ingredient market, US$19 billion
1
is addressable by Tate & Lyle’s three platforms and is also
expected to grow at 6%
1
on a compound annual basis. This
addressable market includes ingredients such as:
• high-intensity sweeteners
• nutritive sweeteners
• rare sugars and other sweeteners
• starches and gums
• dietary fibres
• plant proteins.
More information about these ingredients can be found on
pages 21 to 23, which explain our three platforms.
Majority of addressable market is in large,
fast-growing regions
The majority of our addressable market is in Asia, Middle East,
Africa and Latin America, with 24% in North America. Asia is our
largest addressable market at 38%, which is why it is such an
important growth opportunity for Tate & Lyle and why we are
investing in infrastructure, capabilities and new businesses in
the region.
...in large and attractive
markets…
Our strategy Our markets The world around us Our platforms Our core categories Our scientific capabilities Our business model Our progress
1 Market research data, Tate & Lyle and BCG analysis; estimated value growth
2022-26; CAGR means compound annual growth rate.
Our addressable market for
speciality ingredients
38
%
23
%
8
%
7
%
US$7.2
billion
US$4.3
billion
US$1.5
billion
US$1.4
billion
24
%
US$4.6
billion
North America
Asia
Europe
Latin America
Middle East and Africa
US$19
bn
1
Estimated growth
6%
1
CAGR
18
Strategic report
Tate & Lyle PLC Annual Report 2024
Within our addressable markets, there are a
number of structural global trends that are
driving changes in the way people consume
food and drink.
Global trends
No matter where you look, societies and governments are facing
significant food- and health-related challenges. In today’s more
urbanised world, people are leading less active ways of life,
generally eating too much and moving too little – an unbalanced
lifestyle that affects their health. The rise of diseases like obesity
and diabetes and issues with digestive health and immunity are
leading people to become concerned about their health
and wellbeing.
The world’s population is expected to increase by nearly 2 billion
people from the current 8 billion to 9.7 billion in 2050.
1
One reason
for this is that people are expected to live longer with the number
of people over 60 expected to double by 2050 to just over
2 billion.
2
This will require not only a significant increase in the
quantity of food the world needs to produce but also in the
nutritional content of that food. This is important given the
increasing emphasis in some countries on how a food is made or
processed. The debate over processing risks diverting people’s
attention away from the importance of a food’s nutritional value,
and could result in nutritionally important foods being lost from
people’s diets.
Population growth is one factor in the significant increase in
healthcare costs being seen in many countries across the world.
This is why governments are continuing to introduce policies and
initiatives to support healthier choices when it comes to food and
drink. These include front-of-pack sugar, fat and salt labelling in
Latin America, and calorie information on menus in UK restaurants,
cafés and takeaways. At the same time, there is an increasing
interest in weight loss drugs, which underlines the public’s desire
to combat excess weight and obesity around the world.
Concern for our planet and its natural resources, particularly the
need to tackle climate change, is also increasing rapidly, as
people become more aware of the environmental impact of the
food they eat. This is not surprising given that food systems –
what we eat; how we grow, ship and cook our food; and how we
dispose of and sometimes waste it – account for around a third
of global greenhouse gas emissions.¹ One consequence of this is
that the demand for plant-based food is growing, as people
adopt vegan, vegetarian or ‘flexitarian’ diets, cutting back on
meat amid concerns not only about health, but also about the
effects of animal farming on the environment. And they’re also
wanting to know exactly what goes into the food they eat and
where it comes from, examining labels more closely and looking
for simpler or ‘more natural’ ingredients.
Finally, the fast adoption of technology is leading to a society
driven by speed and convenience, with access to information on
social media and other digital platforms increasingly influencing
what food people choose to buy and eat.
Our growth opportunity
People’s desire for food and drink that is healthy, tasty, convenient
and more sustainable and affordable all play directly into
Tate & Lyle’s areas of expertise. As a global leader in sweetening,
mouthfeel and fortification, we create ingredients and solutions
that reduce sugar and calories, enhance texture and mouthfeel
experience, provide stability across a product’s shelf-life,
increase nutrition through fibre and protein and, where necessary,
optimise cost. As an expert in taking sugar, calories and fat out of
food and adding fibre, we are also well-placed to help restore the
nutritional balance of ‘ultra processed’ foods.
While we have leading expertise in all our three platforms,
what really sets us apart is our ability to formulate across the
intersection of sweetening, mouthfeel and fortification. And at the
same time, as a plant-based business, we are working to take
care of our planet and its natural resources. Our goal is not just to
feed people, but to feed them well.
1 United Nations.
2 World Health Organization.
...driven by increasing global demand
for healthier food and drink.
Our strategy Our markets The world around us Our platforms Our core categories Our scientific capabilities Our business model Our progress
1 United Nations Department of Economic and Social Affairs.
2 World Obesity Federation.
3 Global Data Consumer Survey, 2024.
4 Mintel GNPD launches; claims match one or more of:
environmental claims, natural, organic, non-GMO, no artificial
flavours, preservatives or additives.
5 Mintel GNPD launches with one or more claims: vegan/no
animal ingredients; plant-based.
Global trends
21
%
estimated increase in global population
by 2050
1
1
in
5
adults
expected to be obese by 2025
2
81
%
consumers are concerned about health and
wellbeing
3
34
%
food and drink launches globally in 2023 had a
transparency claim
4
11
%
food and drink launches globally in 2023 were
plant-based
5
Strategic report Governance Financial statements Useful information
19
Tate & Lyle PLC Annual Report 2024
Our strategy Our markets The world around us Our platforms Our core categories Our scientific capabilities Our business model Our progress
Our portfolio is aligned to consumer trends
Consumer trends
• Reduce sugar and calories
• Taste experience
• Improve nutrition
• Optimise cost
• Improve label
• Enhance texture and
mouthfeel experience
• Clean label
• Stability
• Optimise cost
• Increase nutrition from fibres
and protein
• Add health benefits
• Reduce sugar
Healthy Tasty Convenient Sustainable Affordable
Solutions required to meet what consumers want
What consumers are looking for in their food
These solutions are delivered through our three platforms
Along with global trends such as population
growth, we see five key consumer trends
driving how people are purchasing and
consuming food and drink (see right). These
trends are influenced by a number of factors:
The desire to be in control of what we eat and drink.
People want to understand what’s in the food they are buying
and to ensure it reflects their values. Transparency about the
sustainability of products, nutritional claims and labelling are all
increasingly important areas.
The desire for healthier food. People are looking for products
that are lower in sugar, calories and fat, and which contain
additional nutrition such as fibre and protein.
The pleasure and celebration of food. People want to embrace
new sensory experiences and indulge every now and then.
The cost-of-living crisis. This continues to affect people across
the world, and value for money is a key part of purchasing
decisions. Convenience is also important – for example, working
from home has meant people are snacking more often.
Sweetening Mouthfeel Fortification
20
Strategic report
Tate & Lyle PLC Annual Report 2024
Our strategy Our markets The world around us Our platforms Our core categories Our scientific capabilities Our business model Our progress
We meet this
demand through
three platforms:
sweetening...
Tate & Lyle has over a hundred years of
sweetening experience and is a leading
provider of sweetening solutions.
Removing sugar from a product sounds simple but sugar does
much more than just sweeten – it lowers the freezing temperature
and raises the boiling point. Sometimes sugar acts as a
preservative and sometimes it provides the ability to hold water
and moisture. So understanding the complexity of sweetening
solutions and the interaction of different sweeteners is vital.
Probably the greatest challenge is making sure products maintain
the same sensory experience after sugar has been removed, and
through our portfolio of sweeteners, texturants and fibres, we can
build back the taste and mouthfeel experience people love.
Growth opportunity
US$5.2
billion
Addressable market
1
~6
%
CAGR
Market growth¹
,
²
1 Speciality ingredient market; market research data, Tate & Lyle and
BCG analysis.
2 Estimated value growth 2022-26; CAGR means compound annual growth rate.
Sugar and calorie reduction toolbox
Stevia Sucralose Allulose Maltodextrin
Erythritol Fructose
Monk fruit
Non-nutritive sweeteners
Low-calorie
rare sugar
Low-calorie
sugar alcohol
Nutritive
sweetener
Functional sugar
replacement
Key attributes of our ingredients and solutions
Labelling, claims and regulatory approvals may vary by country.
Times sweeter than sugar (sucrose)
Reduce
sugar and
calories
Taste
experience
Improve
nutrition
Optimise
cost
Improve
label
200-300x 150-200x 600x 0.7x 0.2x 0.7x 1.2x
Strategic report Governance Financial statements Useful information
21
Tate & Lyle PLC Annual Report 2024
Labelling, claims and regulatory approvals may vary by country.
Our strategy Our markets The world around us Our platforms Our core categories Our scientific capabilities Our business model Our progress
...mouthfeel...
Growth opportunity
US$7
billion
Addressable market
1
~6
%
CAGR
Market growth¹
,
²
Liking a food is often highly dependent on
how it feels in the mouth, and mouthfeel is an
increasingly important area of the food matrix.
Tate & Lyle’s ability to predict and modify
mouthfeel is a key differentiator in the
solutions we provide to our customers.
Mouthfeel is mostly affected by the texture of food together with
its taste and smell. Given that most people make their choices
based on taste, it’s essential we can identify what mouthfeel
they
prefer.
Our mouthfeel and texturant portfolio is extensive with around
300 starches and gums providing a range of functional benefits
including gelling, thickening, emulsifying, film forming and
bulking. In simple terms, that means our starches, gums and
stabilisers ensure snacks remain crispy, cakes don’t crumble,
frozen meals remain stable and yoghurts have a rich and
indulgent texture.
Mouthfeel toolbox
Some ingredient examples...
Key attributes of our ingredients and solutions
Around 300
starches and gums providing a range
of functional benefits including:
Thickening Emulsifying Stabilising
Film
forming
Bulking
Labelling, claims and regulatory approvals may vary by country.
1 Speciality ingredient market; market research data, Tate & Lyle and
BCG analysis.
2 Estimated value growth 2022-26; CAGR means compound annual growth rate.
Enhance texture
and mouthfeel
experience
Clean label Stability Optimise cost
22
Strategic report
Tate & Lyle PLC Annual Report 2024
...fortification...
Our fortification portfolio is made up of dietary
fibres and a small amount of plant protein.
The World Health Organization recommends that adults eat
at least 25 grammes of fibre every day, but most people are
not getting enough, and in many cases nowhere near enough.
This is important as a low fibre intake is associated with higher
levels of cardiovascular disease and diabetes – and can disrupt
the beneficial gut microbiome. So ‘bridging the fibre gap’ is
a key challenge for both consumers and food and beverage
manufacturers.
As the global leader in soluble fibres, Tate & Lyle is well-
positioned to help consumers bridge this gap. Fibres have
distinctive attributes in many food and beverage categories,
including sugar and calorie reduction as well as fibre fortification.
Our fortification toolbox includes the broadest range of fibres
on the market, as well as our chickpea protein and flour
products. While a small business for us today, our ability to
offer sustainable, plant-based protein solutions is generating
strong customer interest and collaboration opportunities.
Fortification toolbox
Key attributes of our ingredients
and solutions
Labelling, claims and regulatory approvals may vary by country.
Dietary fibres
Plant protein
Growth opportunity
US$6.5
billion
Addressable market
1
~6
%
CAGR
Market growth¹
,
²
1 Speciality ingredient market; market research data, Tate & Lyle and
BCG analysis.
2 Estimated value growth 2022-26; CAGR means compound annual growth rate.
Provides significant
health benefits
including improved
intestinal function
Used in
vegan, gluten-free,
non-GM, clean
label products
How is Tate & Lyle addressing
the global issue of insufficient
fibre intake in diets?
While the health benefits of fibre are
becoming more widely known, intake remains
low. We partner with international research
organisations, academia and others in
industry to build the evidence base around
the role fibres play in our diets.
Want to know more?
Watch Dr Kavita Karnik,
Global Head of Nutrition,
Regulatory and Scientific
Affairs for Tate & Lyle,
in discussion with former
BBC news presenter
Louise Minchin.
Offers variety of fibre
content and health
benefit claims
Helps promote
healthy digestion
and satiety
Used mainly in
health foods and
infant formula
Our strategy Our markets The world around us Our platforms Our core categories Our scientific capabilities Our business model Our progress
Increase
nutrition from
fibres and
protein
Add
health benefits
Reduce
sugar
Strategic report Governance Financial statements Useful information
23
Tate & Lyle PLC Annual Report 2024
Our strategy Our markets The world around us Our platforms Our core categories Our scientific capabilities Our business model Our progress
Our core categories
Through our three platforms of sweetening,
mouthfeel and fortification, we focus on
four core categories of dairy; beverage;
soups, sauces and dressings; and bakery
and snacks.
70% of our addressable market of US$19 billion¹ sits in these
four categories, and together they are expected to grow between
around 6% and 7%¹ on a compound annual basis. The other 30%
is in categories such as confectionery and infant nutrition where
we have regional expertise.
We have experts in consumer insights who analyse consumer
and category trends in their region and by country to identify
the relevance and growth potential of various sub-categories
within our four core categories. These insights are the foundation
of how we decide which sub-categories to focus on. We also talk
with customers to understand their priorities and we analyse the
size of the sub-categories to ensure they have a large enough
addressable market and an attractive growth rate.
For example, an attractive dairy sub-category in China is
yoghurt. The global yoghurt market is large at US$2.2 billion
and is expected to grow at 6%.¹ In China, the market is worth over
US$570 million and is growing faster at around 7%. With our
portfolio of mouthfeel and sweetener ingredients and solutions,
we are well-placed to support customers in this sub-category,
whether to reduce fat and calories or to improve the texture and
sensory appeal of their products. We work
with customers in
different ways depending on their needs but, typically, for
sub-categories, we use what we call a ‘prototype pantry’
approach to find the right solution. In this case, we created
several yoghurt variations to find the right formula.
1 Market research data, Tate & Lyle and BCG analysis; estimated value growth 2022-26.
Beverage Dairy
Soups, sauces
and dressings
Bakery and snacks
Within each of our four core categories, there are numerous sub-categories offering
opportunities for higher growth. Here are some examples:
• Ready-to-drink tea
• Carbonates
• Juice
• Yoghurt
• Dairy desserts
• Dairy alternatives
• Sauces
• Ready meals
• Salad dressings
• Biscuits
• Cereals
• Snack bars
...focused on four core categories...
24
Strategic report
Tate & Lyle PLC Annual Report 2024
Our strategy Our markets The world around us Our platforms Our core categories Our scientific capabilities Our business model Our progress
Science and innovation are at the heart of
how we deliver our strategy. This is because
ingredient science is at the very centre of the
food chain.
Our customers increasingly rely on the innovation expertise
of
ingredient and solutions suppliers like Tate & Lyle to solve
the
challenges of
food reformulation, and to deliver nutritional
improvements and taste. We take agricultural crops, such as
stevia, corn, chickpea and tapioca and, using over a century
of scientific and technical know-how, turn them into highly
functional food ingredients and solutions. But it’s not just about
solving today’s challenges – our scientists are also working to
create the next generation of speciality ingredients and solutions,
developing new technologies and using new substrates.
Scientific know-how
Tate & Lyle’s main scientific knowledge is in the fields of
chemistry, materials science and applications know-how.
Our core scientific competencies mean we are well-placed to
deliver solutions to create healthier, tastier and more sustainable
food and drink. These include bioconversion, separation and
fractionation; drying and crystallisation; and industrial scale-up.
For example, through the combination of our deep understanding
of chemistry, enzyme technology and our separations
capabilities, we are able to take stevia leaves, separate the
sweetness, and produce low-calorie sugar reduction solutions
without the bitter aftertaste stevia can create.
Creating solutions for our customers
By bringing together our science and applications capabilities,
our category expertise and insight, and our broad portfolio
of ingredients, we provide integrated solutions for our customers
(see diagram below). This increases customer collaboration and
strengthens our position as their partner for growth.
...underpinned by our leading scientific
and solutions capabilities.
Accelerating innovation and solution selling:
Ambition for five years to 31 March 2028
New Products as a %
of Food & Beverage
Solutions revenue
Solutions¹ revenue from
new business wins to
increase to
Investment² in innovation
and solution selling
20
%
32
%
5
%
of revenue out of new business pipeline growth per annum
Progress at 31 March 2024
16
%
21
%
5
%
of revenue out of new business pipeline growth
1 Food & Beverage Solutions new business opportunities pipeline; value of opportunities requiring solution formulation in our
application labs as a percentage of the total pipeline.
2 ‘Investment’ means operating expense in the income statement and excludes capital investment.
I
n
s
i
g
h
t
s
Creating
solutions
for our
customers
E
x
p
e
r
t
i
s
e
A
p
p
l
i
c
a
t
i
o
n
s
C
a
t
e
g
o
r
y
C
o
n
s
u
m
e
r
R
e
g
u
l
a
t
o
r
y
P
r
o
t
o
t
y
p
i
n
g
N
u
t
r
i
t
i
o
n
F
o
r
m
u
l
a
t
i
o
n
S
e
n
s
o
r
y
Strategic report Governance Financial statements Useful information
25
Tate & Lyle PLC Annual Report 2024
Our business activitiesOur resources
Our strategy Our markets The world around us Our platforms Our core categories Our scientific capabilities Our business model Our progress
Science and technical know-how
Leading science, technology,
intellectual property and
processes
Talented people
Skilled people with a passion for
serving our customers, and working in an
increasingly agile and flexible way
Global supply chain
End-to-end supply solutions including
raw material sourcing, manufacturing
facilities and logistics
Long-term relationships
Strong relationships with customers,
suppliers, local communities and
other stakeholders
Strong balance sheet
Disciplined use of capital ensures
we have the funds to invest for
long-term growth
This is summed up in our business model…
How we develop our
ingredients and solutions
Our food scientists and nutritionists
research and develop ingredients to
create solutions for our customers.
We work closely with our customers
through every stage of the innovation
process to move ideas quickly from
concept to commercial launch.
How we commercialise our ingredients and
solutions with our customers
Through our leading expertise in sweetening,
mouthfeel and fortification, we provide customers
with ingredients and solutions that bring specific
functionality and nutrition to their products, helping to
make them healthier and tastier for consumers in their
local markets.
How we make our ingredients in a sustainable way
Our ingredients are made from agricultural crops such as stevia,
corn and tapioca. We produce them at our facilities around the
world. Wherever we are in the process from field to customer, our
priorities are safety, quality and consideration for the environment.
26
Strategic report
Tate & Lyle PLC Annual Report 2024
Our purpose, values and behaviours The value we create
Our strategy Our markets The world around us Our platforms Our core categories Our scientific capabilities Our business model Our progress
Supporting the UN SDGs
For shareholders
Our priority is to invest in growth and pay an attractive dividend
For customers
We help our customers quickly bring to market products that address society’s
changing needs
For employees
We are committed to the health, safety and wellbeing of our employees, and to providing
a culture that is inclusive and performance-driven
For suppliers
We have long-term, mutually beneficial relationships with supplier partners
For communities
We have a long history of community involvement, helping to make lasting contributions to
the places where we live and work
For the planet
We care for our planet by reducing greenhouse gas emissions, beneficially using our waste,
using less water and supporting sustainable agriculture
Our purpose
Transforming Lives through the
Science of Food
Our values
Safety
Integrity
Respect
Our behaviours
Be curious
Have courage
Bring challenge
Create flow
Strategic report Governance Financial statements Useful information
27
Tate & Lyle PLC Annual Report 2024
...with performance
measured by our
KPIs…
We use a number of metrics to determine
how our business is performing, how we
are delivering our strategy, how we are
maintaining financial flexibility, how we are
keeping our people safe at work, and how
we’re living our purpose.
Changes to KPIs in 2024
The financial KPIs set out here replace those in last year’s Annual
Report. In February 2023, we announced a new financial ambition
for the five years ending 31 March 2028. Our Chief Executive
discusses how we performed in the first year since setting that
ambition in his review on page 11. In the Chief Financial Officer’s
review on pages 32 to 35, we consider the performance of each
of our reporting segments and progress against other financial
metrics. Overall, however, the five key performance indicators
(KPIs) set out here are the main ones we use to measure our
financial performance. These five are also the key financial
metrics used to determine Executive Directors’ annual bonuses
and for the long-term incentive plan.
As well as financial metrics, our safety KPIs are taken into
account when determining performance against the strategic
non-financial component of annual bonuses. Some of our
purpose targets are also used as metrics for the long-term
incentive plan, namely a reduction in Scope 1 and 2 greenhouse
gas emissions, gender equality in leadership and management
roles, using less water, and the beneficial use of waste.
Financial performance
1
Group revenue Group adjusted EBITDA
2
Free cash flow
2
(2)
%
7
%
£49
m
0
.0 350.2 700.4 1050.6 1400.8 17
5
2024
£1,647m
£1,751m
£1,375m
2023
2022
0
.0 65.6 131.2 196.8 262.4 32
8
2024
£328m
£322m
£237m
2023
2022
0 34 68 102 136 1
7
2024
£170m
£121m
£76m
2023
2022
Performance in 2024
In Food & Beverage Solutions we made
a strategic decision to focus on margin
ahead of volume, with revenue slightly
lower. Sucralose demand remained
robust, with revenue broadly in line with
last year. We continued to optimise
Primary Products Europe, transitioning
capacity to speciality ingredients, which
led to lower revenue.
Performance in 2024
Food & Beverage Solutions, our growth
driver, performed well with adjusted
EBITDA up 8%. Sucralose again delivered
solid returns with profits modestly lower.
Primary Products Europe losses reduced
significantly in the year.
Performance in 2024
This reflected strong cash conversion
of higher profits. Our focus on cash
generation drove a significant decrease
in working capital, while investment in
growth increased, with capital expenditure
higher in the year.
Why we measure it
To ensure we are successfully converting
our investments into revenue growth.
Why we measure it
To ensure each of our segments fulfils
its role and that we execute our strategy
successfully.
Why we measure it
To track how efficient we are at turning
profit into cash and to ensure that working
capital is managed effectively.
How we calculate it
In constant currency.
How we calculate it
In constant currency.
How we calculate it
As presented in Note 4.
Link to remuneration
Annual cash bonus plan
Long-term incentive plan
A
L
Annual cash bonus plan
A
Annual cash bonus plan
A
Our strategy Our markets The world around us Our platforms Our core categories Our scientific capabilities Our business model Our progress
1 Adjusted EBITDA, free cash flow, and return on capital employed (ROCE) are non-GAAP measures. Changes in adjusted performance metrics are in constant currency and for continuing
operations (for definitions, see Notes 1 and 4).
2 Comparative restated to exclude other M&A costs (2023 – £2 million) reflecting the revised definition of alternative performance measures. 2022 comparatives for adjusted performance
measures are pro-forma financial information excluding other M&A costs of £4 million. See ‘Additional information’.
28
Strategic report
Tate & Lyle PLC Annual Report 2024
Financial performance
1
Safety performance
3
Return on capital employed
2
Total shareholder return
(20)
bps
(19)
%
.00 3.52 7.04 10.56 14.08 17
.
2024
17.4%
17.6%
16.9%
2023
2022
0 20 40 60 80 100 1
2
88
109
100
2024
2023
2022
Performance in 2024
Return on capital employed (ROCE) was
slightly lower, reflecting the acquisition of
Quantum Hi-Tech part-way through the
2023 financial year. On an organic basis,
excluding the impact of acquisitions,
ROCE was 40 basis points higher than the
prior year.
Performance in 2024
Share prices have been weak in the UK
stock market, especially in the food sector,
and this has affected our share price.
Why we measure it
To ensure we continue to generate a
strong rate of return on the assets we
employ, and to maintain a disciplined
approach to capital investment.
Why we measure it
Because an increasing total return
demonstrates the value our strategy
generates for investors.
How we calculate it
The return as a percentage of our profit
before interest, tax and exceptional
items, divided by average invested
operating capital.
How we calculate it
The share price change together with
dividends paid, cumulatively as a
percentage from an indexed value of
100 at the start of the three-year period.
Link to remuneration
Long-term incentive plan
L
Long-term incentive plan
L
Our strategy Our markets The world around us Our platforms Our core categories Our scientific capabilities Our business model Our progress
Recordable incident rate Lost-time rate
41
%
reduction
38
%
reduction
.00 0.18 0.36 0.54 0.72 0.
9
2023
0.53
0.90
0.84
2022
2021
0
00 0.138 0.276 0.414 0.552 0.
6
2023
0.43
0.69
0.62
2022
2021
Performance in 2023
The number of accidents and the amount of time lost during the year were much lower
reflecting the progress we have made with our J2E programme. For more information on
J2E and our safety performance see pages 41 to 43.
Why we measure it
Ensuring safe and healthy conditions at all sites is essential to our success.
How we calculate it
The number of injuries requiring
treatment beyond first aid per
200,000 hours.
How we calculate it
The number of injuries that resulted in
lost-work days or restricted-work days per
200,000 hours.
Link to remuneration
Annual cash bonus plan
A
Annual cash bonus plan
A
3 Measured by calendar year
Strategic report Governance Financial statements Useful information
29
Tate & Lyle PLC Annual Report 2024
...and our purpose targets
In 2020, we set targets and commitments to help us pursue our
purpose over a ten-year period. We continued to make good
progress this year.
Area Target By when Progress Performance in 2024 How we calculate it
Improving
nutrition
Through our low- and
no-calorie sweeteners and
fibres, we’ll help remove
9 million tonnes of sugar
from people’s diets
31 March 2025
7.9
m
2025
target
9m
2020
0
2024
We saw good performance
from fibre solutions and
sucralose. 7.9 million tonnes of
sugar is equivalent to more
than 31 trillion calories.
We take the volume of fibres and
low- and no-calorie sweeteners
we sell and calculate the sugar
equivalence and caloric conversion.
Encouraging
balanced
lifestyles
We’ll help improve the lives
of over 250,000 people, by
supporting programmes that
promote healthier lifestyles
and activities
31 March 2025
121,000
2025
target
250,000
2020
0
2024
We support health, education and
physical activity programmes
across the world.
We count the number of people who
benefit from the programmes we
support either through cash
donations or volunteering. In many
cases, this information comes from
the third parties who run the events.
Promoting
personal
wellbeing
We’ll help colleagues improve
how they look after their
physical and mental
wellbeing, so they can be at
their best in their daily lives
31 March 2025
73
%
2025
target
90%
2020
70%
2024
Our score was slightly lower this
year at 73% (75% last year).
We report the percentage of
colleagues who, in our annual
employee survey, agree that
Tate & Lyle actively supports their
health and wellbeing.
Area Target By when Progress Performance in 2024 How we calculate it
Preventing
hunger
We’ll provide over 3 million
nutritious meals for people
in need
31 March 2025
4.2
m
2020
0
2024
2025
target
3m
We further exceeded our target
providing more than 550,000 meals
this year to help people in need in
our local communities.
Each food bank or charitable partner
we support tells us how many meals
our donations provide.
Supporting
education
We’ll support the education
of over 100,000 children and
students through learning
programmes and grants,
helping them attain skills
for life
31 March 2025
47,000
2020
0
2024
2025
target
100,000
We continued to support schools,
for example by donating equipment,
mentoring students and giving
educational grants.
Each school or organisation we
work with tells us how many students
benefit from the programmes we
support.
Progressing
equity,
diversity and
inclusion
We’ll achieve gender parity
in our leadership roles
Long-term incentive plan
L
31 March 2025
45
%
2020
27%
2024
2025
target
50%
We made solid progress in the year,
up from 44% last year.
Leadership and management roles
are defined as the top five employee
bands, representing more than
500 people.
Our strategy Our markets The world around us Our platforms Our core categories Our scientific capabilities Our business model Our progress
Supporting healthy living
Building thriving communities
30
Strategic report
Tate & Lyle PLC Annual Report 2024
Area Target By when Progress
2
Performance in 2023 How we calculate it
Climate and
carbon
emissions
Deliver 30% absolute reduction
in Scope 1 and 2 GHG
emissions
1
Long-term incentive plan
L
31 December
2030
11
%
2019
0%
2023
2030
target
30%
The reduction came from a
combination of lower production
levels in our plants, benefits from
continuous improvement projects,
and an increase in the use of
renewable electricity.
Percentage absolute reduction in
Scope 1 and 2 GHG emissions.
Deliver 15% absolute reduction
in Scope 3 GHG emissions
1
31 December
2030
20
%
2019
0%
2023
2030
target
15%
We exceeded our 2030 target well
ahead of schedule due in part to
strong reductions from our
sustainable corn and stevia
programmes.
We receive data on GHG emissions
from partners in our sustainable
agriculture programmes and third
parties across our value chain
including Primient.
Eliminate the use of coal
in all operations
31 December
2025
2019
0%
2025
target
100%
Target met in 2021
We met this target in October 2021
when we de-commissioned our last
coal-fired boiler in the US.
Our sites which use coal boilers to
create energy.
100% of the electricity
purchased for our operations to
come from renewable sources
31 December
2030
12
%
2030
target
100%
2021
0%
2023
We increased the use of renewable
electricity at production facilities
in Brazil, the Netherlands, Italy and
the UK.
Percentage of electricity we purchase
that comes from renewable sources.
Using less
water
Reduce water use
intensity by 15%
Long-term incentive plan
L
31 December
2030
4
%
2019
0%
2023
2030
target
15%
The increase was mainly due to
greater water use intensity at our
sites in Thailand and Lafayette,
Indiana, US.
Percentage reduction (or increase in
2023) in water use intensity across
our operations.
Using waste
beneficially
100% of waste will
be beneficially used
Long-term incentive plan
L
31 December
2030
90
%
2019
65%
2023
2030
target
100%
We continued to work with local
partners in the US to use more of our
waste as nutrients on local farms, or
for energy recovery.
Percentage of waste generated by
our sites that is beneficially used.
Sustainable
agriculture
Maintain sustainable acreage
equivalent to the volume of
corn we buy globally each year
Each year
2023
0%
2023
target
100%
Target met in 2023
Our sustainable agriculture
programme in the US with Truterra
continues to perform well. We
supported, 367,000 acres of corn
in 2023, equivalent to all the corn we
bought that year.
The number of acres of corn
purchased to make our ingredients
each year compared with the
sustainable acres of corn we
support through our partnership
with Truterra each year.
Baselines
The baseline for our caring for our planet targets is the year ended 31 December 2019, other than renewable electricity, whose baseline is the year
ended 31 December 2021. For supporting healthy living and building thriving communities, the baseline is 31 March 2020.
1 Validated as science-based by the Science Based
Targets initiative.
2 Measured in calendar years.
Our strategy Our markets The world around us Our platforms Our core categories Our scientific capabilities Our business model Our progress
Caring for our planet
Strategic report Governance Financial statements Useful information
31
Tate & Lyle PLC Annual Report 2024
Despite a difficult economic environment we
delivered a strong profit performance and
excellent cash generation.
Notwithstanding the challenges of managing through a cycle
of exceptional cost inflation, and then deflation as we moved
through the year, to deliver such a robust financial performance
is a testament to the team’s resilience and agility, alongside
a relentless focus on customer service, efficiency and cost
discipline. Their collective effort has been very impressive.
Robust financial results
Looking at the numbers, Group revenue was 2% lower with
adjusted EBITDA growth of 7%. Adjusted profit before tax was
18% higher and adjusted diluted earnings per share were up 18%.
In the businesses, Food & Beverage Solutions performed well
with revenue slightly lower and adjusted EBITDA 8% higher. The
underlying performance of the Sucralose business remained
steady, with EBITDA modestly lower. The optimisation of Primary
Products Europe is continuing with losses significantly reduced in
the year.
Excellent cash performance
Cash generation is the lifeblood of any business. That’s why
we set a free cash flow conversion target of reaching 75% by
31 March 2028. We made great progress in the 2024 financial
year, helped by disciplined working capital management,
increasing cash conversion by 23ppts to 85%. Cash generation
remains a key priority and our focus moving forward is to
consistently exceed our long-term cash conversion target of 75%.
Strong free cash flow helped to reduce net debt by £85 million
to £153 million at 31 March 2024.
Another year of strong productivity
There is a strong culture of productivity within Tate & Lyle and this
came to the fore once again this year. We made great progress
against our target of achieving US$100 million productivity
savings by 31 March 2028, delivering US$41 million savings in the
year. This was well ahead of the target we set at the beginning of
the year of US$25 million savings. These came from a variety
of areas such as optimising our manufacturing processes,
procurement savings and cost discipline. We also continued to
invest in technology to increase productivity and ensure our
people have the tools they need to do their jobs well. As a result of
our strong progress, we are increasing our five-year productivity
savings target by 50% from US$100 million to US$150 million.
Chief Financial Officer’s introduction:
Successfully navigating
challenging markets
Dawn Allen \ Chief Financial Officer
32
Strategic report
Tate & Lyle PLC Annual Report 2024
We have a strong balance sheet and, looking forward, we want to
retain the flexibility to drive value-accretive growth, guided by our
view that our long-term efficient leverage is in the range of 1.0x to
2.5x net debt to EBITDA. We remain focused on converting our
profit into cash, to support all uses of capital, in line with our
capital allocation policy.
Building resilience to climate change
Financial resilience is clearly important, but it’s not the only sort of
resilience that matters. Climate change is having an increasing
impact on all businesses, and we are no different. We apply a
sustainability lens to all our capital expenditure and strategic
decisions, considering issues like carbon emissions, energy and
water use. During the year, £8 million of our capital expenditure
was invested in sustainability-related projects either to increase
our environmental performance or increase the resilience of our
assets to the impact of climate change. We have also created
a number of new roles within the organisation focused on
progressing our sustainability agenda as well as, from a finance
perspective, managing rapidly increasing sustainability reporting
and disclosure requirements.
Summary
In conclusion, we delivered a strong profit performance while
navigating a challenging external environment. We continue
to improve the quality of our financial performance with:
• Delivery of EBITDA margins of 21% in Food & Beverage
Solutions
• Accelerated productivity savings leading to a 50% increase in
our five-year target from US$100 million to US$150 million
• A step change in cash generation, well ahead of our 75%
long-term target.
At the same time, we continue to apply our capital allocation
framework to drive value-accretive growth through continued
investment for the long term, as well as returning surplus cash to
shareholders.
Looking ahead, I am confident that, whatever the 2025 financial
year brings, we will continue to make progress as a fully-focused
speciality food and beverage solutions business.
Dawn Allen
Chief Financial Officer
Chief Financial Officer’s Introduction continued
Our capital allocation framework
We allocate capital as set out below. In doing so, we aim to
maintain our investment-grade credit rating.
Return surplus capital to shareholders
Maintain a progressive dividend policy
Invest in acquisitions, joint ventures, partnerships
Invest in organic growth
Our segmental reporting structure
1
Food & Beverage Solutions Drive growth
Attractive returns
Optimise
Sucralose
Primary Products Europe
RevenueRoleReporting segment Adjusted EBITDA
82
%
11
%
7
%
86
%
16
%
-2
%
1 Percentages are the proportion of Tate & Lyle’s revenue and EBITDA represented by each segment.
Continuing to invest for the future
Our capital allocation framework remains unchanged with a
focus on investing in organic and inorganic growth. For example,
during the year:
• We completed our €25 million investment to add new capacity
for non-GMO PROMITOR
®
Soluble Fibres at our site in Boleráz,
Slovakia
• We invested in a new robotics system at our Customer
Innovation and Collaboration Centre in Singapore to develop
new mouthfeel solutions and help our customers increase their
speed-to market (see page 13 for more detail)
• We continued to invest in our sustainable agriculture
programmes for corn and stevia.
The strength of our balance sheet means we have the flexibility to
invest for long-term growth, including in acquisitions, as we look
to expand the strength and breadth of our sweetening, mouthfeel
and fortification platforms.
Capital allocation
Our capital allocation framework remains unchanged. Our
priority is to continue the disciplined deployment of capital and to
maintain Tate & Lyle’s financial strength. Under our framework,
we have a clear prioritisation:
• Firstly, investment in organic growth
• Secondly, investment in acquisitions, joint ventures and
partnerships
• Thirdly, our progressive dividend policy
• And finally, to return capital to shareholders should it become
surplus to the needs of the Company.
Consistent with the above, as explained in the Chief Executive’s
Review on page 15, we intend to return the net cash proceeds
from the sale of our remaining interest in Primient to shareholders
by way of a share buyback programme upon completion.
Strategic report Governance Financial statements Useful information
33
Tate & Lyle PLC Annual Report 2024
Food & Beverage
Solutions
What we do
Our portfolio, combined with our technical expertise in key
categories such as beverage, dairy, bakery and snacks,
and soups, sauces and dressings, enables us to deliver
solutions for our customers which make food and drink
healthier and tastier. We do this through three platforms –
sweetening, mouthfeel and fortification – more information
about which are on pages 21 to 23.
We are a global leader in sweetening,
mouthfeel and fortification, creating solutions
for our customers to meet growing consumer
demand for healthier and tastier food
and drink.
Revenue Revenue drivers Adjusted EBITDA
Full-year Change
1
Volume
2
Price mix
2
Full-year Change
1,3
North America £642m (3)% (8)% 5% – –
Asia, Middle East, Africa and Latin America £396m (3)% (7)% 4% – –
Europe £321m 1% (1)% 2% – –
Tota l £1,359m (2)% (6)% 4% £281m 8%
Revenue was 2% lower in constant currency at £1,359 million.
Lower volume from softness in consumer demand and customer
destocking led to 6ppts reduction in revenue. Price mix increased
revenue by 4ppts, reflecting 1ppt from our focus on strategic mix
management and solution selling and 3ppts from the impact of
net input cost inflation (the recovery of inflation in the three
quarters to 31 December 2023, net of the pass-through of
deflation in the quarter to 31 March 2024).
Looking at the three regions, all were impacted by soft consumer
demand and customer destocking. Revenue growth in Europe
reflected the pricing through of greater net input cost inflation.
• North America: Revenue was 3% lower. Cost of living pressures
on consumers resulted in softer demand across our focus
categories, partially offset by higher pricing. As we entered the
fourth quarter, a reducing impact from customer destocking
and lower food inflation, and new customer contracts, delivered
improved volume momentum.
• Asia, Middle East, Africa and Latin America: Revenue was 3%
lower. In Asia, revenue was lower reflecting pricing pressure
and weaker demand for stabilisation solutions, mitigated by
good growth in beverages, particularly in North Asia.
Consumer demand in China remained soft. In Latin America,
revenue declined driven by lower priced imports from outside
the region, especially in Mexico. Excluding the impact of these
imports, revenue was ahead of the prior year with strong
growth in beverages and bakery. In Middle East and Africa,
revenue was ahead of the prior year with strong demand for
dairy solutions in North Africa.
• Europe: Revenue was slightly ahead of the prior year driven by
three main factors. Firstly, we saw good demand across the
dairy and infant nutrition categories, and for mouthfeel
solutions generally. Secondly, we continued to execute our
strategy to exit some low margin business, with revenue from
distributors, in particular, lower. Finally, we saw increased
competition from imports from outside the region.
The renewal of customer contracts for the 2024 calendar year is
expected to deliver a sequential improvement in volume growth
as the year progresses. Reflecting this, average daily volume
momentum accelerated in the final quarter. The new customer
contracts include the pass through of input cost deflation. As a
result, revenue was lower in the second half of the 2024 financial
year.
Adjusted EBITDA was up 8% in constant currency at £281 million
benefiting from mix management and the pricing through of net
input cost inflation. This, together with the benefit from
productivity and strong cost control, saw adjusted EBITDA
margins expand by 180bps in constant currency. The effect of
currency translation decreased adjusted EBITDA by £12 million.
Innovation and solution selling
New Products Revenue Investment Solutions
Value Change
% of FBS
4
revenue
Innovation and
solution selling
% of new
business wins
£219m (4)% 16% 5% 21%
Revenue from New Products was 4% lower. Certain ingredients
reached post-launch maturity in the year and were removed from
the definition of New Products. On a like-for-like basis, which
assumes the same ingredients are included in New Products
revenue in both the current and comparative periods, New
Products revenue was 13% higher. On this like-for-like basis, we
saw strong growth in the mouthfeel platform, protein delivered a
near-doubling of revenue and Quantum Hi-Tech helped to
accelerate growth in fortification.
Investment in innovation and customer-facing solution selling
capabilities including sensory and open innovation was 5%
higher. Targeted programmes to develop new ways of working
with customers and build stronger solutions-based partnerships
helped increase solutions new business wins by value to 21%
(2023 – 18%). We have set an ambition to increase this to 32% over
the five years to 31 March 2028.
1 Growth in constant currency.
2 To reflect the underlying drivers of revenue growth, the total percentages for volume
and price mix have been adjusted by 4ppts to exclude the impact from our focus on mix
management and margin expansion. Without this adjustment, the values for both
volume and price mix would be 4ppts greater.
3 Comparative restated to exclude other M&A costs of £(2) million reflecting the revised
definition of adjusted EBITDA, see Additional information.
4 FBS is Food & Beverage Solutions.
34
Strategic report
Tate & Lyle PLC Annual Report 2024
Sucralose Primary Products Europe
Sucralose delivered attractive returns
with revenue broadly in line with,
and EBITDA modestly lower than,
the prior year.
Underlying customer demand for sucralose
remained steady. Revenue was broadly in line with
the prior year as volume remained consistent and
customer mix led to modestly lower pricing. Adjusted
EBITDA declined modestly reflecting cost inflation
across a range of inputs. Currency translation
decreased adjusted EBITDA by £3 million.
1 Growth in constant currency.
What we do
SPLENDA
®
Sucralose is a high
potency no-calorie sweetener
which is 600 times sweeter than
sugar (sucrose). Its ability to
maintain sweetness through a
wide variety of food processing
conditions make it an ideal
sweetener to create low-calorie
products for consumers.
We continue to optimise the
financial performance of Primary
Products Europe as we transition
capacity to higher margin Food &
Beverage Solutions ingredients.
Revenue was lower by 12%, mainly reflecting the
reduced volume of co-products. Adjusted EBITDA
losses reduced significantly, benefiting from lower
input costs.
1 Growth in constant currency.
What we do
Primary Products Europe
represents the commoditised
part of our corn wet milling
capacity in Europe. It consists of
isoglucose, industrial starch and
products for animal nutrition.
Revenue Revenue drivers Adjusted EBITDA
Full-year Change
1
Volume Price mix Full-year Change
1
£174m (1)% in line % (1)% £52m (4)%
Revenue Revenue drivers Adjusted EBITDA
Full-year Change
1
Volume Price mix Full-year Change
1
£114m (12)% (15)% 3% £(5)m 34%
Strategic report Governance Financial statements Useful information
35
Tate & Lyle PLC Annual Report 2024
Summary of the financial results for the year ended 31 March 2024 (audited)
Year ended 31 March
Continuing operations only
2024
£m
Restated
2023
£m
Constant
currency
change
Revenue
Food & Beverage Solutions 1 359 1 438 (2)%
Sucralose 174 184 (1)%
Primary Products Europe 114 129 (12)%
Revenue 1 647 1 751 (2)%
Adjusted EBITDA
Food & Beverage Solutions 281 273 8%
Sucralose 52 58 (4)%
Primary Products Europe (5) (9) 34%
Adjusted EBITDA 328 322 7%
Depreciation and adjusted amortisation (70) (71) (1)%
Adjusted operating profit 258 251 8%
Net finance expense (6) (20) 66%
Adjusted share of profit of Primient joint venture 35 24 53%
Adjusted profit before tax¹ 287 255 18%
Operating profit (statutory) 207 196 10%
Profit before tax (statutory) 226 152 54%
Earnings per share (pence) – continuing operations
Adjusted diluted 55.5p 49.6p 18%
Diluted 44.4p 30.8p 51%
Earnings per share (pence) – total operations
Diluted 46.5p 46.2p 5%
Cash flow and net debt – continuing operations
Free cash flow 170 121
Net debt 153 238
1 Adjusted EBITDA, adjusted diluted earnings per share, and free cash flow are non-GAAP measures. Changes in adjusted performance metrics are in constant currency and for
continuing operations. Comparatives for adjusted performance metrics have been restated (see Additional information).
Overview
The Group delivered strong adjusted EBITDA growth. Revenue
was 2% lower reflecting lower volume partially offset by good mix
management and the recovery of inflation. Adjusted EBITDA
was 7% higher with adjusted profit before tax 18% higher.
Food & Beverage Solutions performed well with revenue
slightly lower and adjusted EBITDA 8% higher. The underlying
performance of the Sucralose business remained steady, with
adjusted EBITDA 4% lower. The optimisation of Primary Products
Europe is continuing with losses significantly reduced.
Net finance expense
Net finance expense at £6 million was 66% lower in constant
currency, mainly reflecting higher net income on the Group’s cash
balances. Because almost all of the Group’s borrowings in the year
were at fixed rates of interest, the Group was not exposed to
significant changes in interest rates on its borrowings.
Exceptional items
Net exceptional charges of £25 million were included in profit
before tax, of which a charge of £1 million was included from the
Group’s share of exceptional items in the Primient joint venture.
Of these costs, £21 million related to organisational improvements
to the Food & Beverage Solutions business and activities to drive
productivity savings. In the period, exceptional cash outflows for
continuing operations totalled £27 million. (For more information
see Note 8.)
Group financial review
36
Strategic report
Tate & Lyle PLC Annual Report 2024
Adjusted share of profit of Primient joint venture
Year ended 31 March
2024
£m
Restated
2023
1
£m
Constant
currency
change
Adjusted operating profit 143 102 47%
Net finance expense (92) (80) (21%)
Adjusted share of profit from its own joint
ventures after tax 32 33 2%
Adjusted profit before tax 83 55 58%
Adjusted share of profit of Primient
joint venture² 35 24 53%
1 Reclassification adjustment: adjusted operating profit has been increased by
£2 million and adjusted share of profit from its own joint ventures after tax reduced
by the same amount.
2 The Group’s share of the adjusted profit of the Primient joint venture is based on profit
after tax. Primient is a US partnership (so its partners rather than Primient itself are
responsible for tax on its US income). Tax of £12 million (2023 – £6 million) has been
deducted from profit before tax relating to tax on income earned by Primient’s
Brazilian subsidiary.
Adjusted operating profit was 47% higher in constant currency
at £143 million reflecting robust demand for sweeteners,
strong customer contracting in 2023 and 2024, and improved
operational performance. The net finance expense increase
reflected higher US interest rates. Statutory share of profit from
the joint venture for the 2024 financial year was £25 million,
mainly reflecting a £9 million charge for the amortisation of
acquired intangibles and other fair value assets which was
excluded from the adjusted share of profit.
Tate & Lyle received cash dividends from Primient of
US$74 million in the year.
Taxation
The adjusted effective tax rate for the year was 21.6% (2023
– 19.9%). The increase in the rate reflects more profit taxed in
higher rate jurisdictions and the increase in the rate of UK
corporation tax from 19% to 25%. Looking ahead, we continue
to expect the adjusted effective tax rate for the year ending
31 March 2025 to be in line with the rate for the 2024 financial year.
The reported effective tax rate (on statutory earnings) for the year
was 20.6% (2023 – 16.8%). The lower rate in the comparative year
was due to higher tax deductions on exceptional items recorded
by Primient.
Earnings per share
Adjusted earnings per share for continuing operations at
55.5p were 18% higher (in constant currency). This increase
reflects 16% higher profits after tax and benefit from a lower
weighted number of shares of 2ppts, reflecting the share
consolidation completed on 3 May 2022. Statutory diluted
earnings per share for continuing operations increased
significantly to 44.4p (2023 – 30.8p), reflecting mainly higher
exceptional costs in, and therefore a lower share of profit from,
joint ventures in the comparative period.
Return on capital employed (ROCE)
ROCE at 17.4% (2023 – 17.6%) was slightly lower reflecting
the impact of the acquisition of Quantum part-way through
the comparative period. ROCE increased by 40bps on an
organic basis.
Dividend
The Board is recommending a final dividend of 12.9p
(2023 – 13.1p) per share. This brings the full year dividend to
19.1p (2023 – 18.5p), an increase of 3.2%. In February 2023, in our
Capital Markets Event, we announced our policy of paying interim
dividends at the level of one third of the previous year’s full-year
dividend; accordingly an interim dividend for the six months to
30 September 2023 was paid of 6.2p (30 September 2022 – 5.4p)
per share. Subject to shareholder approval, the proposed final
dividend will be due and payable on 2 August 2024 to all
shareholders on the Register of Members on 21 June 2024. In
addition to the cash dividend option, shareholders will continue
to be offered a Dividend Reinvestment Plan alternative.
Cash flow, net debt and liquidity
Year ended 31 March
2024
£m
Restated
2023
1
£m
Adjusted EBITDA 328 322
Adjusted for:
Changes in working capital 7 (105)
Capital expenditure (net) (110) (71)
Net retirement benefit obligations (7) (9)
Net interest and tax paid (57) (28)
Share-based payment charge 13 20
Other non-cash movements (4) (8)
Free cash flow 170 121
Free cash flow was £170 million (2023 – £121 million), an increase
of £49 million. This reflected both higher profits and a strong
focus on cash generation which delivered a £112 million
improvement in net working capital mainly through improved
inventory management discipline, with strong progress in
initiatives to optimise inventory, across all of: raw materials,
in-process inventory, and finished goods. Investments in
infrastructure, capacity and technology drove capital expenditure
to £110 million, £39 million higher in the year. Overall, cash
conversion for the period improved by 23ppts to 85%.
2
We expect capital expenditure in the year ending 31 March 2025
to be in the £100 million to £120 million range.
Net debt at 31 March 2024 was £153 million, £85 million lower than
at 31 March 2023. Strong free cash flow generation and dividends
received from Primient of US$74 million (£59 million) were more
than offset by outflows including the payment of dividends to
shareholders of £76 million and payments in respect of share
incentive schemes of £25 million. In April 2023, to reduce interest
costs and in line with ongoing balance sheet optimisation, the
Group repaid a US private placement debt floating rate note of
US$95 million ahead of its maturity using cash. On 30 October
2023, a US$25 million US private placement 3.83% fixed rate note
was repaid on maturity using cash.
1 Comparative restated to exclude other M&A costs of £(2) million reflecting the revised
definition of adjusted EBITDA, see Additional information.
2 Free cash flow conversion calculated as: free cash flow before capital expenditure
divided by adjusted EBITDA.
Group financial review continued
Strategic report Governance Financial statements Useful information
37
Tate & Lyle PLC Annual Report 2024
At 31 March 2024, the Group had access to £1.1 billion of available
liquidity through readily available cash and cash equivalents
and access to a committed, undrawn revolving credit facility of
US$800 million (£633 million). Reported leverage at 31 March
2024 was 0.5 times net debt to EBITDA. On a covenant testing
basis, the net debt to EBITDA ratio was 0.3 times, which was
much lower than the covenant threshold of 3.5 times.
On 16 May 2024 the Group’s committed, undrawn and
sustainability-linked revolving credit facility of US$800 million
(£633 million) was amended and restated. The maturity date
was extended for five years to 16 May 2029, and includes two
further one-year extension options, which are subject to lender
credit approval.
Financial risk factors
Our key financial risk factors are market risks, such as foreign
exchange, transaction and translation exposures, and credit
and liquidity risks, as explained in Note 30.
Going concern
The Directors are satisfied that the Group has adequate
resources to continue to operate as a going concern for the
period to 31 March 2026 (‘the going concern period’) and that
no material uncertainties exist with respect to this assessment.
In making this assessment, the Directors have considered the
Group’s balance sheet position and forecast earnings and cash
flows for the period from the date of approval of these financial
statements to 31 March 2026. The business plan used to support
the going concern assessment (the ‘base case’) is derived from
Board-approved forecasts together with certain downside
sensitivities.
Further details of the Directors’ assessment are set out below:
At 31 March 2024, the Group has significant available liquidity,
including £437 million of cash and US$800 million (£633 million)
from a committed and undrawn revolving credit facility, which
matures in 2029. In April 2023, the Group repaid, ahead of
maturity and from existing cash, a US$95 million (£77 million)
US Private Placement Note which matured in October 2023.
A further US$25 million (£21 million) relating to a US Private
Placement Note was repaid on maturity in October 2023 from
cash. The next earliest maturity date for any of the Group’s US
Private Placement Notes is October 2025, when US$180 million
will mature. The extension of the revolving credit facility to 2029
agreed in May 2024 is also factored into this assessment.
The Group has only one debt covenant requirement which is to
maintain a net debt to EBITDA ratio of not more than 3.5 times. On
the covenant-testing basis this was 0.3 times at 31 March 2024.
As set out below, for a covenant breach to occur it would require a
significant reduction in Group profit. Such reduction is considered
to be extremely unlikely.
In concluding that the going concern basis is appropriate, the
Directors have modelled a number of scenarios relating to the
2025 areas of focus outlined on page 89, and also including the
impact of a ‘worst case scenario’ to the ‘base case’ by including
the same two plausible but severe downside risks also used for
the Group’s viability statement, being: an extended shutdown of
one of our large corn wet mill manufacturing facilities following
operational failure or energy shortage; and the loss of two of our
largest Food & Beverage Solutions customers. In aggregate, such
‘worst case scenarios’ did not result in any material uncertainty to
the Group’s going concern assessment and the resultant position
still had significant headroom above the Group’s debt covenant
requirement. The Directors have also calculated a ‘reverse stress
test’ which represents the changes that would be required to the
‘base case’ in order to breach the Group’s debt covenant. Such
‘reverse stress test’ showed that the forecast Group profit would
have to reduce significantly in order to cause a breach.
Accordingly, the Directors have concluded that there are no
material uncertainties with respect to going concern and have
adopted the going concern basis in preparing the consolidated
financial information of the Group as at 31 March 2024.
Group financial review continued
38
Strategic report
Tate & Lyle PLC Annual Report 2024
What we do
Innovation and Commercial Development (ICD) combines
our scientific and commercial skills to provide a fully
integrated approach to serving customers. The team creates
new products and extensions to existing product lines, and
develops new technologies and processes to make our
business more efficient. ICD consists of a number of areas
working together as one team:
• Research and development
• Solutions innovation
• Platform ingredient management
• Nutrition, scientific and regulatory affairs
• Marketing and consumer insights
• Open innovation.
£219
m
New Products revenue
1
16
%
New Products as a percentage of Food & Beverage
Solutions revenue
1
1 Year ended 31 March 2024.
Innovation and
Commercial Development
Our ICD team combines a deep understanding of consumer
trends and food and beverage categories with leading-edge
science to create the solutions our customers need.
Our researchers and food scientists use their expertise in
formulating food and beverages to reduce or eliminate sugar
and calories from our customers’ products. Our solutions also
improve the nutritional profile of products by adding structure,
fibre and protein.
Overview of the year
We made good progress against our priorities for innovation this
year, and continued to invest for future growth. Highlights include:
• New Products revenue was up 13% on a like-for-like basis
(i.e. no products are removed from disclosure due to age), with
strong growth in our mouthfeel platform
• We increased investment in innovation and solution selling
by 5%
• We opened a new Customer Innovation and Collaboration
Centre in Jakarta, Indonesia, in June 2023
• We launched nine new products including TASTEVA
®
SOL
Stevia Sweetener, with its patent-protected technology that
improves solubility
• We added 61 patents to our portfolio; we now have more than
540 patents granted with over 220 pending.
Innovating with customers
Consumer preferences are different around the world, which
is why our global network of Customer Innovation and
Collaboration Centres is so important. We work together with
customers at these centres to reformulate their existing products,
and create new products, to meet the needs of their local
markets. Our work with customers at these centres is helping
us to become their trusted innovation partner.
Leading science
Our deep knowledge in the fields of chemistry, materials science
and applications know-how are at the heart of our business.
Our core capabilities in bioconversion and physico-chemical
transformations, along with drying and crystallisation, and
separation and fractionation, uniquely places us to create
solutions for customers which address growing consumer
trends such as sugar reduction, fibre fortification and clean
label formulation. Supported by our nutrition and regulatory
knowledge, we carry out research with academic organisations
around the world. This, alongside our intellectual property, our
external partnerships and our open innovation activities, gives
us a strong, science-based innovation platform on which to
accelerate growth.
Investing in research
Research is at the heart of our work in ICD – it enables us to
develop new products and supports the science behind our
ingredients with independent data. We do much of our research
with academic and industry partners who bring wider expertise
and resources to the table.
For example, this year, we worked with preclinical gastrointestinal
research experts, Cryptobiotix, to explore the potential impact on
gut health of certain low- and no-calorie sweeteners in healthy
people and in those with type 2 diabetes. As well as finding no
adverse impact on the gut, our research, which was carried out
with samples of human gut microbiota, showed that some
sweeteners, such as stevia, could potentially have beneficial
effects. While these initial findings need validation with human
clinical trials, we nonetheless believe the results, published in the
International Journal of Food Sciences and Nutrition, are a useful
contribution to the evidence around this emerging topic.
Looking ahead
In the coming year, we will continue working with customers to
develop new solutions and grow our innovation pipeline, and will
carry out more research. We will also continue to build our
scientific library to increase our knowledge in areas like the role
of fibre in cardio-metabolic health.
It has been a strong year for innovation,
with new investment, research and customer
collaboration.
Strategic report Governance Financial statements Useful information
39
Tate & Lyle PLC Annual Report 2024
What we do
Global Operations runs our plants and manages the global
supply chain to ensure our ingredients and solutions are
delivered to our customers on time, in full and to the right
specification. Our team covers:
• Raw material sourcing
• Manufacturing and engineering
• Quality
• Procurement
• Logistics
• Customer service
• Continuous improvement
• Health and safety, environment and security.
Global Operations
Another strong year for productivity
The Group delivered US$41 million in productivity savings this
year – exceeding our target of US$25 million. Our commitment
to continuous improvement was central to this success. For
example, our team at our plant in Lafayette, Indiana, US, increased
yields through a variety of interventions and training.
We also saw the benefits of our regional management structure.
We now have an experienced operational leader responsible for
end-to-end manufacturing across each region. They work
closely with our regional general managers to help serve our
customers, while managing costs and capital investments
efficiently. As a result, working capital reduced during the year,
as we improved the efficiency of our output, carefully managing
inventory and production levels to ensure we only make what
we need when we need it. At the same time, our performance in
serving our customers – delivering products on time, in full and
to the right specification – hit a record high.
Investing in digital technology for better insights
A big change this year has been the way that our investment in
data-led systems is starting to help our teams work more quickly
and efficiently. For example, we’re working on a multi-year
project to strengthen our demand, supply and production data,
and improve end-to-end planning, which is already generating
new insights. These are helping us respond more quickly to
changes in demand.
During the year we launched a new ‘smart’ manufacturing
investment programme at our sites in Lafayette, Indiana, US, and
Koog, the Netherlands. Once up and running, this programme will
give us access to detailed, real-time data analytics on everything
from reactor times, to yields, to quality specifications. This will
help to drive more efficient production and the better use of our
resources. In time, it will also help us detect – and eventually
predict – maintenance issues.
Other aspects of technology that are helping us be more efficient
are the digital ways of working we learnt during the pandemic,
such as virtual walkarounds at our plants.
Bringing more women into operational roles
We’re also seeing the results of our work to create a more diverse
team and are particularly proud that women now make up more
than 60% of employees working in our procurement and quality
teams. Meanwhile, women represent 15% of our engineering
team, as well as a growing number of our operational leaders.
For example, we have two new female plant managers, at one of
our largest sites, Koog, the Netherlands, and at our pilot plant in
Decatur, Illinois, US.
Designing sustainability into everything we do
Our operations team continues to design sustainability into
everything we do, to help meet our environmental targets as well
as those of our customers. We consider all capital projects
through a sustainability lens, and during the year we carried out
an analysis of the impact of climate change on our operations
and supply chain (see pages 73 and 74).
Sustainable businesses need sustainable supply chains and so
we were delighted that, for the first time in 2023, we earned an A
rating from CDP for supplier engagement in relation to climate
issues. We were also named in CDP’s 2023 Supplier Engagement
Rating Leaderboard. Being recognised as a leader in supplier
engagement demonstrates our progress in mitigating the impact
of climate change on our supply chain, and the importance we
attach to our collaborative approach of working with suppliers.
Looking ahead
If the past few years have taught us anything, it is that disruption
to global supply chains is the new normal. That’s why the work
our teams have done – and will continue to do – to strengthen
our resilience and responsiveness to ensure we keep delivering
reliably for our customers is so important.
It was another challenging year for our operations, with continued
higher energy prices, customer destocking and the impact of
climate change and geopolitical conflicts all affecting the smooth
running of our supply chains. Despite this, our teams showed
exceptional agility and resilience in continuing to keep our plants
running efficiently and serving our customers reliably. At the
same time, they also drove down costs and achieved our best
safety results since we began our Journey to Environmental,
Health, Safety, Quality and Security Excellence (J2E) six years
ago (see pages 41 to 43).
Our focus this year remained on serving our
customers, managing supply chain disruption
and delivering productivity savings.
40
Strategic report
Tate & Lyle PLC Annual Report 2024
Health and safety
Keeping people safe and well at our sites is
our primary concern, whether they work for us
or with us.
Our ingredients come largely from agricultural crops, principally
corn and stevia. We produce them at manufacturing and blending
facilities around the world. Wherever we are in the process, from
field to customer, our priorities are the health and safety of the
people who work for and with Tate & Lyle and consideration for
the environment – which we summarise as EHS. Our work is
supported by our Journey to Environmental, Health, Safety,
Quality and Security Excellence (J2E) programme, a consistent
approach that helps ensure everyone is working to the same
high standards.
To safeguard ourselves and everyone around us at our sites,
we expect employees, contractors and third parties to take
responsibility by:
• Complying with all safety rules and regulations relevant to
their work
• Intervening to prevent unsafe conditions through our ‘Stop
Work Authority’, which gives anyone the right to halt a
procedure if they believe it’s unsafe
• Respecting fellow workers and the communities where we work.
Our safety performance in 2023 was the best
since we started our J2E journey six years ago.
Jan-Jaap van der Bij, Senior Vice President, Environment, Health, Safety,
Quality and Security
Our approach means more than just following the rules. It’s
about having a mindset that keeps us aware of, and allows us to
eliminate or control, the risks we face every day. Key to that is
openness – the desire by everyone to challenge each other,
without judgement, to understand why accidents happen. It’s at
the heart of every good safety programme.
Any site-based work comes with built-in risks, and so it’s up to
us
to work together to identify these risks, manage and own them.
It’s a shared responsibility and a collective effort by everyone,
whatever their role. That collective effort has paid dividends this
year, with better performance across all our key metrics for health
and safety. We’ve also seen many of our sites passing through
more ‘tollgates’ under our J2E programme.
EHS governance, systems and reporting
Governance
Our EHS Advisory Board oversees J2E and reviews
performance. It meets quarterly and is made up of senior
executives, including the Chief Executive. The Board of
Directors receives updates on EHS performance at every
meeting, and a more detailed review of progress once a year.
We explain our sustainability governance framework in the
Environment section on page 54.
Systems
J2E is supported by a global management system, aligned
with the requirements of international standards for the
environment, occupational health and safety, and risk
management (ISO 14001, ISO 45001 and ISO 22000). This
feeds into our global Environment, Health, Safety, Quality
and Security policy (available on www.tateandlyle.com).
It sets out a number of principles designed to keep our
people safe, along with a consistent set of requirements
and expected results.
We encourage all employees to share their ideas and report
concerns via our cloud-based tool, Benchmark, which
enables us to manage EHS data efficiently and consistently.
Every week, the EHS team shares with a wide group of
employees the latest EHS performance data, details of any
incidents and corrective actions taken, and examples of
good practice.
Public reporting
We explain the scope, principles and methodologies we use
to report our EHS performance in ‘EHS Reporting Criteria’ at
www.tateandlyle.com/purpose. We report EHS data by
calendar year.
J2E aims to…
• Build a strong, sustainable EHS culture
• Keep people safe and prevent loss of life and injuries
• Prevent business disruption
• Provide clarity about the behaviour we expect from
those who work for us and with us
• Manage our operational EHS risks while ensuring
compliance with applicable regulation
• Minimise our environmental footprint
Strategic report Governance Financial statements Useful information
41
Tate & Lyle PLC Annual Report 2024
Performance in 2023
We report safety statistics by calendar year.
Leading indicator –
PSEs
Number of incidents Number of lost-work and
restricted-work cases
9
(2022: 8)
21
(2022: 35)
17
(2022: 27)
Potentially severe events (PSEs) are events or incidents that could have resulted in a major or severe incident.
Recordable incident rate
1
Lost-time rate
2
0.92
0.39
0.84
2021
0.60
0.16
0.53
2023
1.04
0.00
0.90
2022
0.69
0.20
0.62
2021
0.48
0.16
0.43
2023
0.80
0.00
0.69
2022
Employees
Contractors
Combined
1 Number of injuries requiring treatment beyond first aid per 200,000 hours.
2 Number of injuries that resulted in lost-work days or restricted work per
200,000 hours.
Number and nature of accidents causing injury (21 in total)
Fall, same level 19%
Fall, different level 19%
Caught in, under, on or between 14%
Lowering, lifting or carrying 9%
Contact with extreme temperature 9%
Struck by or against 5%
Body position or posture – bend, lean or twist 5%
Forceful exertion, pushing or pulling 5%
Contact with sharp object 5%
Slip, trip or fall 5%
Motor vehicle accident 5%
Total 100%
4
3
4
1
1
2
1
1
1
2
1
Our 2023
1
safety performance
This year has seen the biggest year-on-year decrease in injuries
among our employees and contractors since we began our J2E
programme six years ago. There was a 38% decrease in our
lost-time rate, and a 41% reduction in our recordable incident rate,
with no life-altering injuries or fatalities. The strong progress we
have made this year is thanks to the excellent work of our people
and is a testament to their commitment to keeping each
other safe.
Our site in Ossona, Italy, represents one of this year’s standout
achievements, reaching 16 years without an injury. Meanwhile,
our stevia plant in Anji, China, reached two calendar years without
a recordable incident, which is particularly positive given that it’s
one of our most recent acquisitions. The site’s growing track
record is a clear demonstration of the way the team has
embraced our J2E programme.
Despite this improvement in performance, we still saw nine
potentially severe events (PSEs) at different sites around the
world – one more than in 2022. PSEs are events or incidents that
could have resulted in a major or severe incident and are a key
leading indicator, helping us focus on areas of potential risk.
Our analysis of the root causes of these PSEs did not reveal
a common thread, but the purpose of J2E is to develop an
environment where everyone who works for and with Tate & Lyle
constantly looks for ways to identify, assess and control all our
EHS risks. So analysing PSEs is a key part of our J2E programme.
This is done by our Incident Review Board (IRB) which is led by
the Senior Vice President, Global Environment, Health, Safety,
Quality and Security, and is attended by senior leadership from
Global Operations, as well as plant and site managers. The
corporate EHS team tracks any actions decided by the IRB until
they’re complete.
Health and safety continued
1 We report safety performance by calendar year. For EHS reporting purposes,
employees include all those at Tate & Lyle-owned operations and joint ventures, and
we also include contractors.
42
Strategic report
Tate & Lyle PLC Annual Report 2024
Building momentum on our
JourneytoExcellence
Our J2E programme helps us promote the safety of our
people, neighbours and the environment around our plants.
It is vital in helping us continue to live our purpose as we pursue
our growth ambitions, and it shows our customers that,
whichever plant they come from, our products are the result
of our people sticking to common processes that promote
safety, quality and sustainability.
Every site with more than five people – whether it’s a plant, lab or
an office – is involved, passing through seven stages or ‘tollgates’,
with help from colleagues who champion a specific aspect of
EHS culture. Sites can only pass through a tollgate after a rigorous
assessment carried out by internal EHS experts. Sites with five
people or fewer – generally small sales offices – are still
included in all our J2E communications, and must adhere to
our policies.
Six years after we first established our J2E programme, built on
a foundation of compliance, risk management and culture, we’ve
made excellent progress, with 60% of our plants and 38% of
offices and labs having passed or gone beyond tollgate 5 by
the end of March 2024. This is an important milestone because
tollgate 5 is the point at which sites typically switch from a
leader-led to an employee-led approach. It’s a real cultural shift
that sees teams starting to draw on everything they’ve learnt from
J2E to take a more proactive role in problem solving and driving
performance. We know from feedback that local teams who
reach tollgate 5 feel particularly energised and proud of their
achievements – which itself supports better performance.
The journey on from tollgate 5 is about maintaining performance
and pursuing excellence, and we’re delighted that this year our
sites in Ossona, Italy, and Mold, UK, joined McIntosh, US, in
passing the final milestone, tollgate 7. Another four sites are
very close to reaching it. Once sites have achieved tollgate 7, we
continue to monitor them to help them maintain that status.
What is particularly exciting is how quickly teams at our newer
sites have adopted the J2E programme. Our stevia plant in Anji,
China, which we acquired in 2020, passed tollgate 3 in early 2024.
And, while Quantum Hi-Tech, also in China, has only just started
on J2E, we’re already seeing a new safety mindset around the
plant. For example, site leaders now visit the shop floor every
week and QR codes are placed around the site to help employees
raise concerns at any time.
While we want every site to reach tollgate 7, it will take some a
little longer than others, since each site has its own unique
challenges. We also still have gaps to fill in some of our processes
and to raise awareness at some sites, but the progress we have
made so far demonstrates the difference our J2E programme
is making.
Encouraging our people to raise concerns
As part of the culture we’ve created through J2E, we encourage
our people to report any EHS concerns, however large or small,
using our cloud-based Benchmark tool. Once again, we saw
another increase in the number of concerns flagged, rising from
4,155 in 2022 to 5,296 in 2023, demonstrating that our people
are willing to speak up when they see a potential issue. We are
particularly pleased that 37% of this year’s concerns came from
our three newest sites in Anji and Jiangmen in China, and
Dan Khun Thot in Thailand, which gives us further reassurance
that our newest colleagues are embracing the J2E culture.
Importantly, we closed 89% of the concerns raised within 30 days.
Deepening our team’s leadership skills
To keep up the momentum on J2E, in 2022 we launched a new
professional development programme for employees to help
people working in EHS roles enhance their leadership skills.
Developed with an external coaching partner who specialises
in EHS leadership, the five-step programme provides training
in areas such as active listening, sharing information and
proactively seeking opinions from others to address the
specific challenges that each site faces. For a site to reach
tollgate 7, we would expect their EHS leader to have reached
stage 4 (‘experienced’) of the training, while people in global roles
need to complete all five stages, reaching ‘expert’ level.
Aside from our EHS leaders, we’ve also introduced wider training,
this year launching cross-functional, operational ‘learning’ teams
to help people better understand the complexity and cross-
functional dynamics that are inherent in any project, process, or
problem. The aim is to break an issue down into its component
parts before discussing possible solutions.
Looking ahead
We’re proud of our team’s progress this year and the momentum
they’re building to achieve excellence, but key to achieving
excellence is never to relax vigilance. So, alongside focusing
on each site’s progress towards the next tollgate, we’re also
introducing new cross-functional ‘high-risk explorations’ to
assess the biggest risks our plants face. And because risk is
often easier to spot from the outside, we’re asking teams to
review their peers’ sites, rather than assessing their own. What we
learn from this exercise will help us continue to strengthen how
we identify and manage risks, and ultimately support us in our
goal of keeping people safe and well everywhere, every day.
Health and safety continued
J2E: tollgate progress
Number of sites at each tollgate
2
5
3
6
9
3
3
Tollgate 1 – 6%
Tollgate 2 – 16%
Tollgate 3 – 10%
Tollgate 4 – 19%
Tollgate 5 – 29%
Tollgate 6 – 10%
Tollgate 7 – 10%
Our team at Van Buren, Arkansas, US celebrating passing tollgate 5
Strategic report Governance Financial statements Useful information
43
Tate & Lyle PLC Annual Report 2024
Our people:
Working together to deliver our purpose
This year our people showed strong
commitment to our purpose, as we continued
to put the tools and processes in place to help
them thrive in their careers.
The true measure of a company is the quality of its people. In a
year when we were challenged by a difficult external environment
and softer consumer demand, our people showed incredible
commitment and resilience, working together to ensure we
stayed focused on serving our customers and looking after each
other’s safety and health. Their passionate belief in our purpose
of Transforming Lives through the Science of Food, and in our role
at the centre of the future of food, also enabled us to continue
delivering on our growth-focused strategy.
Engaging with our people
While we measure performance in lots of ways, the scores
from our annual global employee survey, ‘Have your Say’, is the
main way our people tell us what they think about working at
Tate & Lyle, including what’s going well and where we can
improve. The survey is confidential and managed through an
external platform. Our latest survey, which we carried out in
November 2023, showed a high level of participation at 80%,
similar to 2022 (82%).
Our overall engagement score from the survey is based on
answers to two questions: ‘How happy are you working at
Tate & Lyle?’ and ‘Would you recommend Tate & Lyle as a great
place to work?’ This year, we scored 72%, slightly below the
previous year (75%), which suggests that our people remain
engaged and committed, and excited about the opportunities
our business brings. We know that this year was challenging for
people given the pressure on costs and shifting ways of working,
so we were particularly pleased that engagement levels were
similar to last year. What was really encouraging is that we
received three times as many comments in this year’s survey,
which were full of thoughtful, constructive feedback.
We continue to see high levels of employee
engagement and an excitement about the
future of our business.
Tamsin Vine, Chief Human Resources Officer
The survey told us that our people believe they are able to
contribute meaningfully to the success of the business and that
they know what to focus on to deliver the company’s strategy.
Our equity, diversity and inclusion metrics scored highly, giving
us confidence that people continue to see Tate & Lyle as a place
where they feel heard and can be themselves.
While our engagement scores were generally positive, we
recognise that there is always more we can do and that real,
meaningful change takes time, effort and consistency. Our
leadership team discussed the survey results in detail and agreed
several steps to drive progress in areas for improvement, such as
the more effective use of technology, as well as continuing to
embed the processes and behaviours that are working well. Our
managers have shared the results of the survey with their teams,
and are working together on action plans for the year ahead.
As well as measuring our performance internally, we also look
at external perceptions of our people and business. During the
year, we were pleased to be named one of the world’s 1,000
most trustworthy companies by weekly news magazine
Newsweek, and Statista, a leading market research and
insights business. This was based on an independent survey
of 70,000 people in 21 countries, and an online and social media
assessment involving 269,000 evaluations of companies
across 23 industries. Companies were assessed based on trust,
customer service, how they are viewed by investors, and their
treatment of employees.
Our behaviours
We have established four behaviours which
underpin our growing culture of innovation and
experimentation:
Be curious
ask questions; listen without judgement; look up
and out to bring in fresh perspectives
Bring challenge
invite it; be open to feedback; call out
alternatives to improve; say what’s needed in
the moment
Create flow
know when to step in or when to trust others;
bring creativity to constraints; remove obstacles
for others
Have courage
stand proud behind ideas that inspire; be more
ambitious; see mistakes as fuel for learning
44
Strategic report
Tate & Lyle PLC Annual Report 2024
Embracing technology to improve processes
As explained above, employee surveys aren’t just about the good
things, they also reveal areas for improvement. And last year, our
employees told us that we needed to do more to make it easier
for them to do their jobs. Of our four behaviours, ‘creating flow’
scored the lowest in our survey at 68%.
Since then, we’ve been working hard to strengthen and improve
some of the processes and systems that our people rely on.
Our digital agenda is an important part of this work. Better data
analytics can help us make faster, more informed decisions for
our customers, while new digital processes release people from
important but time-consuming administrative tasks so that they
can concentrate on the more creative thinking we need to
drive innovation.
We’ve also spent time this year looking at the capabilities we
need to maintain our science-led approach. A cross-functional
team worked together to identify five key scientific capabilities to
drive progress across our portfolio, and developed a ten-year
plan for each, to be carried out over three phases. We expect to
see results from the first phase within the next two years.
Becoming a more digitally enabled company is essential for our
future growth, but there are other ways that we can help make
people’s jobs easier, too. For example, our finance team has
mapped its processes to identify gaps and pinch points in the
way it works.
Meanwhile, our HR team is working to strengthen our
performance management system to make it easier for
employees to manage their careers and understand how their
work supports Tate & Lyle’s strategy. As part of that, we’re
modernising some of our people policies and looking at ways to
tighten links between performance and reward. We’re making
sure that, across the business, people’s objectives are aligned
better, and that they are having more regular conversations about
development with their managers.
Rewarding and recognising our people
Fair, performance-based remuneration is fundamental to
people’s motivation. We ensure our remuneration packages are
fair by benchmarking them regularly against the market. In this
year’s salary review, we remained attentive to inflation and the
cost-of-living pressures that people still face in many of the
countries where we operate. We also recognise that the success
of the business is a collective effort, which is why we continue to
give some form of performance-linked discretionary reward or
recognition to employees with at least six months’ service.
But we know that recognition is about far more than pay. This can
take many forms, from localised recognition moments in team
meetings, through to large events that recognise truly exceptional
behaviour, like our ‘Above & Beyond Heroes Awards’ (see page
46). For example, our Executive Committee nominates at least
one person or team each month for special recognition; and
people are encouraged to highlight colleagues’ achievements
and contributions through our internal social media channels.
Our employment policies
Our aim is to create a business which is inclusive to all
regardless of age, disability, marital or civil partnership
status, pregnancy or parental/care-giving responsibilities,
race, ethnic or national origin, nationality, religion or belief
(including lack of belief), social background, gender, gender
reassignment or sexual orientation.
We review our policies frequently, with help from our
employee resource groups, to ensure that any new policies
and updates to existing ones are based on our inclusive
foundations. This year, our review included looking at
compassionate leave across the business, with the goal of
going beyond individual managers’ discretion and eventually
creating a global standard.
Our people continued
Employee profile
At 31 March 2024
Number of employees Employees by geography
(%)
3,318
(2023: 3,604)
38
29
24
7
2
Europe 38%
North America 29%
Asia 24%
Latin America 7%
Middle East and Africa 2%
Gender diversity
(%)
5050
Board
44
56
Executive
Committee
62
38
All
employees
Men
Women
Our Global Shared Services Centre in Łódź, Poland, won the
prestigious Friendly Workplace
®
Award by MarkaPracodawcy.pl.
This is given to employers who demonstrate a modern
approach in building a vibrant workplace culture, prioritising
work-life balance and investing in professional development
and personal growth.
Strategic report Governance Financial statements Useful information
45
Tate & Lyle PLC Annual Report 2024
Nominees from our site in Lübeck, Germany
Developing the skills we need for future success
Making sure our people have the right skills is an essential part
of how we will grow our business. So we focus our training
programmes on helping employees strengthen their existing
skills and develop new ones in line with our strategic goals.
First, though, we need to understand where our strengths and
gaps lie. So this year we carried out a global talent review, which
was an opportunity to explore people’s aspirations and consider
their potential for different roles within the business in line with our
development plans. This has helped us create a much clearer
picture of our existing talent pool, and is also helping us move
people into new roles to support their development.
This year, we launched Connect Catalyst – a new modular
management training programme. Each module focuses on a
key dimension of management, and the programme includes
peer-to-peer coaching to put theory into practice. Data from
this year’s employee engagement survey suggests that the
programme is already having an impact, with this year’s more
than 200 participants reporting a high level of satisfaction.
Our approach to development
Accelerated by the pandemic, our training has moved from
largely face-to-face methods to mostly digital. Virtual
training, alongside e-learning, gives people flexibility and
options to develop skills and knowledge in their own way, at
their own pace, but in line with their objectives.
LinkedIn Learning is a fundamental part of this mix, with
more than 18,000 courses in 13 languages. We also use our
Company-wide Workday
®
platform to offer more than
1,600 training courses. Nonetheless, peer-to-peer learning
remains very valuable, and this year we launched a global
mentoring programme through our employee resource
group, LaunchPad, which focuses on career development.
Building equity, diversity and inclusion
intoeverything we do
We believe in the power and potential of diverse perspectives
to unlock innovation and to accelerate the global growth of our
business. This is why we’re committed to all our employees
being seen, heard and valued, and our teams reflecting the local
communities we serve. We’re also committed to supporting
similar principles throughout our supply chain. As a global
business founded on expertise and creativity, we celebrate how
our unique differences generate better ideas and deeper insights,
empowering us to lead the next food revolution for and with
our customers.
We therefore aim to embrace equity, diversity and inclusion in
everything we do – in our policies and systems, in developing
new ways of working, in educating our people, and in hiring new
people. To help us track our progress, we set a series of targets in
2022 (see page 48).
What equity, diversity and inclusion means to us
Following hundreds of conversations with our people around the
world, we established the following definitions that resonate with
our people:
• Equity: grounded in the principles of fairness; establishing
policies and practices; creating access to opportunities;
removing barriers; and ensuring everyone has the opportunity
to achieve their potential
• Diversity: the mosaic of people who bring a variety of
backgrounds, lived experiences, perspectives and values as
assets to the groups and organisations with which they interact
• Inclusion: a dynamic state of operating that enables everyone
to feel safe, respected and valued for who they are and for their
contributions towards organisational and societal goals.
The simple way we think about these three words together is that
equity is our impact; diversity is a fact; and inclusion is the act.
We focus our approach on four pillars:
• Systems: integrate equity, diversity and inclusion into core
organisational policies and practices to promote equitable
advancement, retention and reward
• Ta le nt: ensure the diversity of our workforce reflects the local
communities we serve
• Culture: educate all to achieve the competence and
confidence needed to create and sustain an inclusive culture
• Society: listen to, speak to and serve society by promoting
equity, diversity and inclusion with our customers, our
communities and our supply chain.
Progress against our targets
In 2023, we met our target that employee resource group (ERG)
leaders spend 10% of their paid time on ERG work, and this
continued in 2024. We are also making progress on our 2024
target to sponsor 30 high-potential employees from under-
represented groups for advancement, although we still have
Our people continued
Celebrating our ‘heroes’
Our Group-wide recognition programme is
another good measure of employee sentiment.
Launched in January 2023, the ‘Above &
Beyond Heroes Awards’ gave people the
chance to nominate colleagues who had made
a big difference to the way people work,
overcome significant challenges or achieved
remarkable things.
Nominations were even higher this year, at
more than 750, and came from all parts of the
business. Nominees were initially judged by
their peers before a global panel chose the final
winners in May 2024. As well as a cash award
for each winner and a presentation at their
local site, in line with our purpose, we donated
US$1,000 to a charity of each winner’s
choice. We will run the programme again in
the coming year.
46
Strategic report
Tate & Lyle PLC Annual Report 2024
Progress on gender diversity
At 31 March 2024
50
%
women on our Board
56
%
women on our Executive Committee
45
%
women in leadership and management roles
(target: 50% by 2025)
36
%
of 135 employees
women in senior management, including
statutory directors
UK gender pay gap reporting
Although we are below the legislative threshold
for UK gender pay reporting, we publish details
of our UK gender pay gap on our website. Our
UK employee population is about 6% of our
global employee population. Using the UK
government’s methodology, the UK gender pay
gap at 1 April 2024 was 1.0% in favour of women.
UK median gender pay gap
1.0
%
in favour of women
more to do here. We have also set a new target to increase
minority ethnic representation amongst our senior leadership
population to 24% over the next four years, in line with the new
2027 reporting target set by the UK’s Parker Review. Setting a
meaningful target is important to ensure we meet our ambitions,
and ethnic minority representation is an area where we want to
do more, particularly in the US. Our first task has been to assess
current representation across our entire global leadership
team, as well as how that representation relates to the local
communities who live near our sites. We will meet this target
through inclusive hiring practices that also serve our business in
the best possible way.
We need to keep building momentum, so this year we hired a new
Head of Talent and Culture to help us make sure that inclusion is
a feature of all aspects of the employee experience. At Executive
Committee level, every member has their own equity, diversity
and inclusion action plan, with measurable targets relevant to
their own area of the business. And we continued to invest in
inclusion training this year, with more than 1,000 employees
taking part.
Our growing network of employee resource groups
Together, our ERGs are an important part of our work to ensure
everyone feels included and valued. These strategic, self-
organised groups connect underrepresented groups across
Tate & Lyle and cultivate a sense of belonging. They’re also
playing an increasingly important role in driving change across
the organisation, for example helping our HR team develop
policies and processes that will support our growth in an inclusive
way. Local regions can also set up ERG chapters or sub-groups.
For example, employees in Asia are setting up their own
sub-group of the IGNITE women’s network.
Throughout the year, our ERGs held events both to educate
and celebrate equity, diversity and inclusion across Tate & Lyle.
These included holding open, honest conversations around
International Women’s Day, Juneteenth, Transgender Day of
Visibility, Black History Month, and many more. We also grew our
community of ‘allies’, people who use their influence to support
those who experience unequal treatment.
ERGs also help colleagues find support, education and
development. For example, our ERG LaunchPad, has created a
safe, creative and inclusive environment for colleagues who want
to grow their career by sharing knowledge and experience,
creating connections, nurturing curiosity, and giving insights on
career paths. Examples of LaunchPad’s work this year include
peer-group learning, a workshop series exploring a lateral
approach to career development, and the continuation of the
Company-wide mentoring programme launched in 2023.
Continuing to support people’s wellbeing
Our ERG network also plays an invaluable role in helping us
care for our people’s physical and mental health. This year, for
example, our wellbeing ERG, Happy Healthy Minds, helped us
think about mental health more holistically, working in partnership
with our HR teams and other ERGs to incorporate the topic into
broader discussions. In October 2023, for instance, Happy
Healthy Minds ran a joint event with IGNITE to discuss the difficult
experience of losing a baby.
Health and wellbeing are central to our purpose, and we track
how we’re doing via our purpose target, which we measure
through our annual employee survey. This year, 73% of our
employees told us that we actively supported their wellbeing,
compared to 75% last year. Wellbeing is also a core element of
our Journey to Environment, Health, Safety, Quality and Security
Excellence (J2E) programme. Through J2E, teams at each of our
sites track what’s being done to care for the wellbeing of our
employees through initiatives such as training events, healthy
eating information, running groups and education sessions.
Our Mental Health First Aiders are another source of support for
our employees and this year our network grew again, with our
first volunteers in our Middle East and Africa region. We also
worked closely with our employee assistance programme
provider to organise discussions on broader mental health-
related challenges. For example, in the US its popular Wellbeing
Wednesdays sessions covered a range of topics, such as
financial wellbeing and emotional strength.
Our employee resource groups
We have seven global ERGs, with local regions able to set up
chapters or sub-groups:
• IGNITE, the network for Tate & Lyle women and their allies
• Proud Place, the LGBTQ+ Network
• Black Employee Network
• Happy Healthy Minds, supporting mental health and
wellbeing
• LaunchPad supporting career development
• Veteran Employees Together
• Asian Pacific Professional Network
Our people continued
Strategic report Governance Financial statements Useful information
47
Tate & Lyle PLC Annual Report 2024
Systems
2024
2026
Culture
2023
2026
Our targets for equity,
diversity and inclusion
We have a set of clear goals and targets
spanning our four equity, diversity and
inclusion pillars – systems, talent,
culture and society. These enable us to
measure our progress and integrate
equity, diversity and inclusion further
into our business. The baseline for each
target is 1 April 2022.
We measure progress annually on
31 March each year.
1 Adjusted to take into account the change in our employee
footprint following the sale of Primient in 2022.
Our people continued
Integrate equity, diversity and inclusion into core
organisational structures, policies and practices,
to promote equitable advancement, retention
and reward.
Educate all to achieve the equity, diversity and
inclusion competence needed to create and sustain
an inclusive culture.
30 high-potential employees from under-
represented groups will be sponsored for
advancement¹
10% of Employee Resource Group leaders’ paid time
will be spent on ERG work. We met this target on
31 March 2023, and again on 31 March 2024
In each region, we will achieve parity between
minority and majority groups in attrition rates, and
in employee engagement scores on equity,
diversity and inclusion
Individual employees, managers and leadership will
spend 10, 15 and 20 hours respectively on equity,
diversity and inclusion training
Ensure the diversity of our workforce reflects the
local communities we serve.
Listen to, speak to and serve society by delivering
progress on equity, diversity and inclusion for and
with our customers, communities and suppliers.
We’ll achieve gender parity in leadership and
management roles
Employees will have spent 30,000 hours volunteering
for projects aligned with our purpose and our priority
UN SDGs, with an ambition to reach 10,000 hours
by 2025¹
Teams at all levels will be representative of their
local communities
We will expand our spend with diverse suppliers
globally, with interim goals achieved for supplier
diversity in North America by 2027
Talent
2025
2030
Society
2030
2030
48
Strategic report
Tate & Lyle PLC Annual Report 2024
Doing business the right way
Our values of safety, integrity and respect are the cornerstone
of our business. We expect everyone who works for and with
Tate & Lyle to act in line with these values, and they’re a key part
of the due diligence we do when we consider any new acquisition.
Code of Ethics
We set out what ‘doing business with integrity’ means in our Code
of Ethics. We expect everyone to live by the Code, starting with
our Board and Executive Committee. This year, we refreshed the
Code to ensure that our expectations remain clear as we grow
our business. We were pleased to see that many of our
employees continued to show a high level of understanding of the
core topics set out in our Code. We remain particularly focused
on training people at our newly acquired sites, and are starting to
see a significant shift in people’s mindset. For instance, we have
seen proactive engagement from colleagues at our most recent
acquisition, Quantum Hi-Tech in China, with new suppliers
requiring further due diligence being brought to the Ethics &
Compliance team’s attention by local Procurement colleagues
prior to onboarding.
Raising concerns
We strongly encourage people to report breaches through our
Speak Up whistleblowing programme, which we advertise in all
our plants and offices, on our intranet and through other internal
communications. This reflects our belief that prevention is the
best approach – if people understand what’s expected of them
and why, they’re more likely to do the right thing.
Our people continued
Our Code of Ethics
Our Code of Ethics helps everyone make the right choices
in their day-to-day work. It’s essential that we all know
about it and understand it, which is where training comes in.
That includes e-learning for everyone and face-to-face
training, either in person or online, for areas of particular risk.
11
languages
98
%
employees trained in the Code
98
%
employees (who need it) trained in
anti-modern slavery/human trafficking
99
%
employees (who need it) trained in anti-corruption
98
%
employees (who need it) trained in data protection
99
%
employees (who need it) trained in competition law
This year, 55 concerns were reported to Speak Up or
through other whistleblowing channels. We investigate
every concern raised, but sometimes have multiple calls
about the same issue, or reports where not enough detail is
given to enable a fair investigation. As a result, the number
of concerns we investigated this year was 40. While higher
than the 38 concerns raised in 2023 (which for similar
reasons led to 35 investigations), we see this as a positive
sign that our people understand our expectations and have
confidence that we will address their concerns. We treat any
concern raised as whistleblowing, which means it is
reviewed by our Head of Ethics and Compliance.
Encouragingly, we saw a particular rise in reports from
our Asia, Middle East and Africa regions, thanks, in part,
to increased engagement among our leaders in these
markets, as well as our focus on training at our newest sites.
The quality of reports is also rising, with higher substantiation
rates and a broader mix of issues, all of which suggests our
teams better understand the risks they face in their part of
the business.
We strongly encourage people to raise
concerns through our confidential
whistleblowing line, Speak Up, managed
by an independent company.
Lauren Higgins, Head of Ethics and Compliance
Policies
Alongside the Code, we publish our supporting policies on
our intranet. These include:
• Competition (Anti-trust)
• Data Protection
• Gifts and Hospitality
• Anti-Corruption/Bribery
• Engagement of Third Parties
• Trade Compliance
• Anti-Facilitation of Tax Evasion
• Whistleblowing.
Strategic report Governance Financial statements Useful information
49
Tate & Lyle PLC Annual Report 2024
Our communities:
A thriving programme
built on our purpose
We believe in building stronger, healthier
communities where we work and live. For our
employees, our commitment to community
involvement is fundamental to who we are and
is a key part of how we live our purpose.
Our community programme
Our programme is brought to life by our purpose pillar of building
thriving communities. Our community involvement programme
is focused on three main areas, with a particular emphasis on
supporting children and young adults.
• Health: We support projects which improve the health
and wellbeing of people of all ages, helping them understand
the roles played by nutrition and physical activity in a
well-balanced life.
• Hunger: We work with organisations to give access to
nutritional meals to people in need in our local communities
and beyond.
• Education: We work with local schools, educational
foundations and other community partners to help prepare
students for healthier, brighter futures.
Where possible, we also align our community activities to our five
priority UN SDGs (see page 14).
Our partners include registered charities, educational institutions
and non-governmental organisations that meet our high
standards for delivering services and results. Our plan and
budget for community involvement are developed and approved
as part of our annual planning process, and we report progress
against our community-related purpose targets on page 30.
Supporting our local communities
Donating to food banks to help people in our local communities
get a nutritious meal has been a core part of our community
programme for many years. Demand for food banks has
increased significantly in the wake of the pandemic and cost-of-
living crisis, so our continuing partnerships with food banks
across the world are as important as ever. These partnerships go
beyond donating meals, with colleagues packing meal boxes and
helping out with deliveries. Through their efforts, we exceeded
our purpose target set in 2020 of donating 3 million meals by
2025 well ahead of schedule. In fact, by 31 March 2024, we had
donated 4.2 million meals.
It's our people that make our community programme so
successful. Once again they’ve been involved in a range of
activities, including supporting a parade in Singapore advocating
for and celebrating people with disabilities, and preparing meals
at a Ronald McDonald House for parents whose children were
being treated at a local children’s hospital in Chicago. And with
the environment still high on everyone’s agenda, many of our
sites supported local waste ‘clean-ups’ this year, including
Brisbane, Australia, McIntosh, Alabama, US, and Mold, UK.
Gardening is great for physical and mental health, as well as
supplementing people’s diets with freshly grown produce.
We continue to run gardening projects in many of our local
communities including in South Africa, Brazil, Mexico and
Colombia. In Łódź, Poland, our employees worked with city
authorities to help revitalise a historic green square near our
offices. And in Thailand, our team initiated a programme to
plant 500 Himalayan cherry trees and 2,500 herb plants in a
forested area.
Inspiring and supporting students
We support a variety of educational initiatives around the world
that encourage students to pursue their studies and help prepare
them for working life. For example, in the US, our science,
technology, engineering and mathematics (STEM) programme
supports students at schools close to many of our facilities, and
in Illinois, US, we partner with the Chicago High School for
Agricultural Sciences to provide scholarships for black students
to pursue agricultural studies in college. In Cape Town, South
Africa, we provide bursaries for students to study food science
at the local university. Meanwhile, this year, our colleagues in
São Paulo, Brazil, and Hoffman Estates, Van Buren and Lafayette,
US, all participated in mentorship programmes, sharing career
advice, coaching tips and holding mock interviews for students
about to enter the workforce.
Looking ahead
Since 2022, our employees have volunteered more than 3,000
hours of their time to support their local communities, and we’ve
set a target to reach 30,000 hours by 2030. Many of our sites
have local community involvement committees that champion
local projects and encourage employee participation. As we
work towards our target, we’ll keep growing our community
programme alongside our business, so that we can continue
to deliver on our goal of building thriving communities wherever
we are.
Investing in our communities
In the year ended 31 March 2024, our cash community
spend and charitable donations amounted to £430,000
(2023 – £431,000).
£430,000
Areas of focus
(%)
32
39
29
Health
Education
Hunger
50
Strategic report
Tate & Lyle PLC Annual Report 2024
Our communities continued
Highlights of the year
Health Hunger Education Health, hunger and education
Helping communities grow
food sustainably
Mexico (pictured)
We partner with Nuestros Pequeños
Hermanos, a charity housing more than
600 orphaned, abandoned and vulnerable
children in the state of Morelos, to help them
grow more fresh fruit and vegetables for
meals, while also helping them learn about
food safety and nutrition.
South Africa
Through our partnership with Food and
Trees for Africa, colleagues at our Kya Sands
facility support children at a local primary
school to cultivate their garden, which feeds
themselves and local households.
Brazil
Through our partnership with Casa do
Amanhã, a charity working with indigenous
Guarani families, colleagues helped develop
and support the charity’s vegetable garden.
Providing nutritious meals for
local people who need them most
US (pictured)
In Hoffmann Estates, Illinois, US, colleagues
volunteered at the Northern Illinois Food
Bank to pack over two thousand meal boxes
for families needing support during the
Thanksgiving holiday.
Brazil
Our team in São Paulo volunteer with
GoodTruck, a charity that takes food that would
otherwise be wasted and prepares nutritious
meals for homeless and vulnerable people in
the local community.
Australia
In Brisbane, our team volunteers at the
FareShare Kitchen, packing meals for the local
food bank.
Supporting students with
scholarships
Thailand (pictured)
We fund a scholarship programme for children
living in villages located near our tapioca plant.
Slovakia
We helped a primary school located near our
corn wet mill in Boleráz build an outdoor
classroom and educational garden.
Argentina
Working with our community partner Fundación
Creciendo en Pilar in Buenos Aires, we provide
scholarships and educational material to
support local students.
US
Our team in McIntosh, Alabama, US, sponsors
the local mobile library truck and helps mentor
local students about to enter the workforce.
Healthy Eating, Happy
Learning
China (pictured)
We continue to partner with the China
Foundation for Rural Development to
support a number of schools in
underdeveloped areas of China. Since its
launch in 2021, our partnership – which is
part of our ‘Healthy Eating, Happy Learning’
child health improvement programme in
China – has provided more than 450,000
nutritional snacks to 3,000 children at 22
schools. It’s also provided 175 pieces of new
kitchen equipment to 11 schools. Working
with the Chinese Nutrition Society, we also
provide students and teachers with nutrition
education booklets and classes.
Strategic report Governance Financial statements Useful information
51
Tate & Lyle PLC Annual Report 2024
Environment
Climate change is the biggest threat to the
world’s long-term future, and presents risks
to every country, business and person on
the planet. Tate & Lyle is no different, and
given that nearly everything we make starts
life in the natural world, whether it’s a leaf of
stevia, a kernel of corn, or a grain of tapioca,
it’s essential that we take care of the planet
and all its biodiversity for its own health and
for the future health of our business.
Overview
The food sector has a huge role to play in addressing climate
change given that food systems are responsible for around
one-third of global greenhouse gas (GHG) emissions. And
yet those same food systems, based on agriculture, are
particularly vulnerable to changing weather patterns as the
world experiences more extreme events, including drought,
heatwaves, flooding, wildfires and biodiversity loss.
That’s why caring for our planet is one of the three pillars of our
purpose, and why we have committed to becoming a net zero
business by 2050. It’s also why, in May 2024, we announced that
we have significantly strengthened our targets to reduce our Scope
1 and 2 and Scope 3 GHG emissions. These new targets align with
the most ambitious goal of the Paris Agreement – to limit global
warming to 1.5ºC above pre-industrial levels.
Climate-related events are already disrupting our operations and
supply chain, and we are taking steps to mitigate their impacts
and increase our resilience. We’re investing in more renewable
electricity, reducing water use, using our waste beneficially and,
given our reliance on nature’s raw materials, supporting
sustainable agriculture.
As well as risks, climate change presents opportunities for
businesses that can make their operations and products
more sustainable. As a plant-based business with a deep
understanding of the science of food, we’re well-positioned
to create the high-quality, low-carbon ingredients people want
to live a more sustainable life. We’re constantly adapting our
approach to sustainability across every aspect of our business
to make sure we embed it in all our plans and processes, from
where and how we source our raw materials to how we develop,
manufacture and distribute our products. It means designing
sustainability into everything we do, so it becomes part of all our
thinking, our investment decisions and our growth strategy.
This includes building environmental improvements into our
expansion projects and acquisitions, and making sustainability
a core part of our innovation process.
We’re committed to playing our part in tackling climate change,
and to protecting and restoring our natural environment. But
we know we can’t do this alone. So, as we work to make our
operations and products more resilient to the impacts of climate
change, we will also continue to work closely with our customers,
suppliers and other stakeholders across our value chain to help
deliver each other’s sustainability goals.
Focusing on the areas of greatest materiality and impact
To ensure we are focusing on the areas that matter most to our
stakeholders and where we can have the greatest impact, we
periodically carry out materiality assessments. We conducted
our last assessment in March 2023, looking at environmental,
social and governance (ESG) issues, and drawing on interviews
with a range of stakeholders. These included customers,
investors, suppliers, non-governmental organisations, Board
members, executive team members and key functions, such
as procurement, operations, and ethics and compliance.
The assessment looked at two main areas. First, the areas we are
expected to manage well, since they have significant potential for
risks if managed poorly. These include, for example, product
quality and safety, anti-bribery and corruption, and data
management. Second, the areas where we could take a leading
position and where we would benefit from ambition and strong
performance. For the environment, the most highly ranked areas
that came out of the materiality assessment confirmed that the
areas we are currently focused on remain the right ones, namely:
• Reduction in Scope 1 and 2 and Scope 3 GHG emissions
• Sustainable agriculture
• Water supply and consumption
• Biodiversity (including using waste beneficially).
We report our progress and performance in each of these areas
in the rest of this section. Our progress on the social issues that
also scored highly in the assessment, including equity, diversity
and inclusion, and access to nutrition, are discussed in other
sections of this Annual Report.
How our environment report is structured
This year, we have made some changes to how we are
reporting on our environmental performance, impact and risks,
to reflect how climate considerations are integrated into our
business, and our increasing focus on our relationship with
nature. Our report integrates the governance, metrics and
some of the strategy disclosures required by the Task Force on
Climate-related Financial Disclosures (TCFD). For details of
climate-related risks and additional strategy disclosures for
TCFD, see pages 73 to 77. We have also taken some early
steps to report against the disclosures required for the new
Task Force on Nature-related Financial Disclosures (TNFD).
Within this section Page
Overview including targets and governance
52
Using less water 55
Climate and carbon emissions 56
Sustainable agriculture 58
Our pathway to net zero 60
Using waste beneficially 62
Our facility in Guarani, Brazil, is our first site to be entirely
powered by renewable energy
52
Strategic report
Tate & Lyle PLC Annual Report 2024
Environment continued
Our targets
In 2020, we set targets to reduce our Scope 1 and 2 and Scope 3
GHG emissions, to reduce our use of water, and to use all the
waste we generate beneficially. Each target was set to 2030 from
a 2019 baseline. We also set a target to support sustainable
agriculture equivalent to the volume of corn we buy globally each
year. Then, in 2022, we added another 2030 target to purchase
100% of the electricity we use across our operations from
renewable sources. To make our 2030 GHG emissions targets
more meaningful, they were based on absolute reductions and
were validated as science-based by the Science Based Targets
initiative (SBTi) at the ‘Well below 2ºC’ level.
Delivering larger, faster GHG emissions reductions
As caring for our planet is one of the three pillars of our purpose,
we continually challenge ourselves to be more ambitious.
As a result, in May 2024, we announced new targets to 2028 to
reduce our GHG emissions in line with reductions required to
limit global warming to 1.5ºC above pre-industrial levels, the most
ambitious goal of the Paris Agreement. These targets have
been validated by the SBTi and will significantly accelerate the
decarbonisation of Tate & Lyle and our supply chain. Under our
new 2028 targets, from a 2019 baseline we’re committing to
reduce, in absolute terms:
Energy and Industrial
• Scope 1 and 2 GHG emissions by 38%¹
• Scope 3 GHG emissions by 38%
Forests, Land and Agriculture (FLAG)
• Scope 3 FLAG emissions by 23%²
• We have also committed to no deforestation across
our primary deforestation-linked commodities by
31 December 2025.
The new targets replace our current targets for Scope 1 and 2 and
Scope 3 GHG emissions to 2030. We set out progress against our
2030 targets in this section of the Annual Report, and will report
progress against our new 2028 targets in next year’s report.
We expect to meet these new targets mainly through an increase
in the use of renewable electricity including via partnerships with
utility providers to create renewable electricity, partnering with
our suppliers and customers to reduce supply chain emissions,
and through our sustainable agriculture programmes.
Continuing to adapt to changing regulation
As concern about the climate crisis grows, so do expectations
of companies like ours to explain how we are addressing our
environmental footprint. We’ve established several working
groups to help us stay up-to-date in our reporting and we are
providing our people with external training to strengthen their
knowledge of this fast-moving landscape.
This year we started to look at how, over time, we can voluntarily
report against the new framework from the Taskforce on
Nature-related Financial Disclosures (TNFD), published in
September 2023. We’re also working to evolve our materiality
approach in line with the EU’s Corporate Sustainability Reporting
Directive (CSRD), and the IFRS’s International Sustainability
Standards Board’s (ISSB) first two standards.
Our targets
At 31 March 2024
Climate and carbon emissions
By 2030:
• We’ll deliver a 30% absolute reduction in
our Scope 1 and 2 GHG emissions
1
• We’ll deliver a 15% absolute reduction
in our Scope 3 GHG emissions
1
• 100% of the electricity we purchase for
our operations will come from renewable
sources.
By 2025:
• We’ll have eliminated coal from our
operations (this target was achieved in 2021).
By 2050:
• We will reach net zero.
Sustainable agriculture
• We’ll maintain sustainable acreage
equivalent to the volume of corn we buy
globally each year, and through partnerships
we’ll accelerate the adoption of regenerative
agricultural practices.
Wat er
By 2030:
• We’ll have reduced water use intensity
by 15%.
1
Wa st e
By 2030:
• 100% of our waste will be beneficially used.
1
1 Baseline of 31 December 2019. Our Scope 1 and 2 and Scope 3
GHG emissions targets to 2030 will be replaced by our new
targets to 2028 announced in May 2024.
Public reporting and assurance
We explain the scope, principles and methodologies we use
to report our environmental performance in ‘EHS Reporting
Criteria’ at www.tateandlyle.com/purpose. We report
environmental data by calendar year.
Arcadis has independently verified selected environmental
data on pages 52 and 53, 55 to 57 and 60 to 62.
Their reasonable assurance statement is at
www.tateandlyle.com/purpose
‘A’ rating for supplier
engagement on climate change
In 2023, Tate & Lyle earned an A rating from CDP, for supplier
engagement. We were also named in CDP’s 2023 Supplier
Engagement Rating Leaderboard for the first time. CDP’s
Supplier Engagement Rating (SER) measures how
effectively companies are engaging with their suppliers
on climate change, and assesses their performance on
governance, targets, Scope 3 emissions, and value chain
engagement. CDP’s SER Leaderboard recognises those
organisations with the highest rating for engaging with
suppliers on climate change, and the role they are playing in
the transition towards a net zero economy. In 2023, around
460 organisations earned a place on this Leaderboard.
1 The target boundary includes land-related emissions and removals from bioenergy
feedstocks.
2 The target includes FLAG emissions and removals.
Strategic report Governance Financial statements Useful information
53
Tate & Lyle PLC Annual Report 2024
Governance
Our governance framework, which has been in place since the
beginning of the 2023 financial year, ensures that sustainability-
related matters are appropriately reviewed and managed across
the business. Sustainability-related matters include climate,
water, waste, deforestation and nature; the latter two are currently
reviewed largely in the context of our sustainable agriculture
programme, but we are looking to expand how we look at
nature-related matters in the coming year. There is a separate
governance process to oversee environmental compliance in our
plants as described on pages 41 to 43 (part of our J2E).
The Board is responsible for overseeing our sustainability
strategy including climate change, and progress against our
commitments and targets, including our impact on nature. It
has a number of non-executive directors with experience of
climate-related matters within the food industry as well as
other sectors. In particular, Kim Nelson has recent and relevant
experience since sustainability was one of her primary
responsibilities in her former role as Senior Vice President,
External Relations at General Mills.
We have a dedicated sustainability team which develops our
sustainability strategy and manages delivery of our programmes,
working with stakeholders throughout our value chain. The team
reports to our Executive Vice President, Corporate Affairs, and
works closely with other teams, such as Global Operations
and Finance.
Our sustainability strategy, the development and delivery of our
programmes, and the management of our sustainability-related
risks and opportunities, including climate change, are overseen
through the following governance structure.
Board of Directors
• Considers sustainability-related matters when reviewing and
guiding core components of our commercial strategy and
business development, such as business plans, annual
budgets and major capital expenditure.
• Receives updates on the progress of our sustainability
programme and our targets and commitments at least twice
a year.
Audit Committee
• Considers reporting disclosures and assurance in relation
to sustainability, including TCFD and new frameworks such
as ISSB.
Executive Committee
•
Our Chief Executive, Nick Hampton, is responsible for the
Group’s preparedness and response to climate-related and
wider sustainability risks and opportunities. He is supported in
that task by the Executive Committee with executive
responsibility shared jointly by the Executive Vice President,
Corporate Affairs (Rowan Adams) and President, Global
Operations (Melissa Law).
• The Executive Vice President, General Counsel (Lindsay
Beardsell) is responsible for risk management, including the
assessment of climate-related and wider sustainability risks.
• Receives quarterly updates on sustainability-related matters.
Risk Committee
• A sub-committee of the Executive Committee, it oversees the
operation of our enterprise risk framework, including risk
management policies and practices for climate-related and
wider sustainability risks.
• The Committee reviews updates from the sustainability, risk
and finance teams, as necessary, and updates the Board on its
work at least annually.
Sustainability Committee
•
A sub-committee of the Executive Committee, chaired by the
Chief Executive. It meets at least twice a year (met three times
in the 2024 financial year) to review the delivery of our
sustainability programme, to consider key projects, and to
track progress against our commitments and targets.
Sustainability Working Group
• A cross-functional group, chaired jointly by our Executive Vice
President, Corporate Affairs and President, Global Operations,
and which includes internal experts from areas such as
sustainability, engineering, energy and finance.
• Meets at least monthly to discuss key projects and detailed
aspects of our approach to sustainability-related matters.
Sustainability as part of remuneration
Given the importance we place on sustainability-related matters,
progress against our targets for Scope 1 and 2 absolute GHG
emissions reduction, for beneficial use of waste and for water use
intensity are all elements of the performance criteria for our
long-term incentive plan. More information can be found in the
Directors’ Remuneration Report.
Environment continued
Governance of sustainability
Board of Directors
Chief Executive and
Executive Committee
Risk Committee
Sustainability Committee
Sustainability Working Group
Audit Committee
54
Strategic report
Tate & Lyle PLC Annual Report 2024
Using less water
Tate & Lyle relies on water for its operations
and supply chain. We’re mindful that water is
a shared resource and that we must use it in
a way that’s sustainable for us and for the
communities we live and work in. That’s why
we set a 2030 target to reduce our water use
intensity by 15%.
Reducing water use intensity within our operations is challenging
given that, as a producer of ingredients for the food industry, we
quite rightly work to strict constraints on how we can recycle and
reuse water. Developing plans to achieve our target means our
teams are having to push themselves further, understanding the
ways our sites use water and the scope for using it more efficiently.
Progress in 2023
In the 2023 calendar year, we saw a 4% increase in our water use
intensity from a 2019 baseline. Absolute water consumption in
2023, however, was 7,668,683 m³, or 8% lower than in 2019.
So while we are using less water overall, our water use intensity
(on a per unit of production basis) has increased. In the 2023
calendar year, this was mainly due to lower production volumes.
Every Tate & Lyle site is set a water-related target each year and,
with the support of our engineering team, many of our production
facilities were successful in improving their water use intensity in
2023. For example, our McIntosh, Alabama, US, facility decreased
water use intensity by 10% by upgrading equipment and making
operational changes to reduce the steam they need. Our Van
Buren, Arkansas, US, facility also enhanced their steam system,
delivering a 14% reduction in water use intensity. In Thailand, we
invested in our Chaodee Modified Starch facility to enhance its
wastewater treatment system, and the wastewater produced will
be used to irrigate local farmers’ land.
We recognise that we need to increase momentum if we are to
meet our target. Over the next year, our engineering team will
continue to work with our sites to identify and assess the feasibility
of projects that will help them meet their site-specific goals.
Updating our water risk assessment
In 2023, we worked with sustainability experts, AECOM, to carry
out a water risk assessment of our main production facilities
(18 in total) and our corn and stevia supply chain, updating 2019’s
assessment. Using WWF’s Global Water Tool and WRI’s
Aqueduct Water Risk Atlas, we screened our major production
facilities’ current and future levels of water stress and associated
issues. We then carried out a more detailed assessment of those
sites identified as high risk for water-related physical risks such
as water scarcity, quality issues, freshwater ecosystem impacts
and flooding. We also carried out a detailed assessment of the
businesses we have acquired since 2019. Given our significant
dependence on agriculture, the assessment also looked at the
water-related risks of our corn and stevia supply chains.
The assessment found that, both currently and over the longer
term (to 2050), risk of water scarcity was low at our five sites with
the largest use of water – our three corn wet mills in Sagamore,
Indiana, US; Boleráz, Slovakia; and Koog, the Netherlands; our
sucralose facility in McIntosh, Alabama, US, and our stevia facility
in Anji, China. However, these sites still faced potential water-
related risks, such as increased rainfall or flooding, and water
quality issues. It also found that our small, locust bean gum
facility in Noto, Italy, is located in the area of highest risk for
water stress.
Our dietary fibre plant in Nantong, China, is a good example of the
value of our water risk assessment. In 2019, it was identified as
being in a high-risk area for water stress. The team used insights
from that assessment to lower their risk of water-related issues
by taking steps to improve piping, reduce water consumption and
increase their water-treatment capacity.
Turning to our supply chain, water risk in our main corn growing
regions was seen as low to medium over the timeframes
analysed (current, 2030 and 2050). The main area of risk for corn,
in particular waxy corn, was in northern France, reflecting
droughts over the last two years. For stevia, the water risk was
also generally low to medium, although some regions of China
where we source stevia leaf are seeing some disruption from
increasing seasonal variability, (ie they are experiencing flooding
and drought at different times of the year).
Looking ahead
In the coming year, we will continue work to reduce water use
intensity and identify projects that can help us make progress
against our 2030 target. We will also look to implement the
findings of our 2023 water risk assessment to increase the
resilience of our business and supply chain, including by ensuring
water risk is fully integrated into our enterprise risk management
and procurement planning systems.
Environment continued
Progress against our 2030 target
By 2030, we’ll have reduced water use intensity by 15%¹
4
%
2019
0%
2023
2030
target
15%
1 The 2019 baseline has been updated to reflect Tate & Lyle’s continuing
operations after taking into account the acquisition of Quantum Hi-Tech in
June 2022.
Our McIntosh, Alabama, US, facility reduced water use
intensity by 10% in 2023
Strategic report Governance Financial statements Useful information
55
Tate & Lyle PLC Annual Report 2024
Climate and
carbon emissions
We are committed to playing our part in
addressing the impacts of climate change.
To do that, we have set ambitious
science-based targets to significantly
reduce our GHG emissions, and support
sustainable agricultural practices. Our aim
is to become a net zero business by 2050.
Scope 1 and 2 emissions
Our Scope 1 and 2 GHG emissions collectively accounted for 16%
of our total carbon footprint in the 2023 calendar year. Reducing
this means making changes to the way we run our plants, through
more efficient processes and switching to lower-carbon sources
of energy. Our target for 100% of the electricity we purchase for
our operations to come from renewable sources is an important
part of this work.
Progress in 2023
By the end of the 2023 calendar year, we had reduced our Scope
1 and 2 absolute GHG emissions by 11% from a 2019 baseline.
This compares to a 6% reduction at the end of the 2022 calendar
year. There are three reasons for this improvement: first, the
volume of products we made during the year was lower, meaning
our absolute GHG emissions were lower as a result; second, our
productivity programme resulted in incremental improvements in
GHG emissions at our manufacturing facilities; third, an increase
in the use of electricity from renewable sources in our
manufacturing facilities.
In August 2023, our facility in Guarani, Brazil, became our first
site to be powered entirely by renewable energy. Alongside
renewable electricity, operations at the Guarani site are being
powered using locally sourced biomass. In the same month, our
Environment continued
manufacturing facilities in Noto, Italy, and Mold, UK, joined
our Guarani facility and our corn wet mill in Koog aan de Zaan,
the Netherlands, in purchasing 100% of their electricity from
renewable sources. In early 2024, our blending facilities in
Ossona, Italy, and Kya Sands, Johannesburg, South Africa, both
installed solar panels on their sites so that all the electricity they
use now comes from renewable sources.
Programmes that focus on other environmental impacts can also
have beneficial effects on our GHG emissions. For example,
projects to optimise and reduce water use at our facilities in
McIntosh, Alabama, US, and Van Buren, Arkansas, US, also
resulted in Scope 1 and 2 emissions reductions because they led
to us needing less steam and, therefore, less energy to heat
the water.
Scope 3 emissions
Scope 3 emissions made up 84% of our total carbon footprint in
the 2023 calendar year, and we account for more than 95% of
those emissions in our reporting. Understanding where our
Scope 3 emissions come from helps us target our reduction
activities in areas where they are most needed and can have the
greatest impact. In 2023, the majority of our Scope 3 emissions
came from purchased goods and services from our suppliers,
customers using our ingredients in their final products, and our
investment in Primient. That’s why it’s critical that we work with
our customers and suppliers, not only to help us achieve our own
targets but also to help them achieve theirs.
Progress against our 2030 targets
Scope 1 and 2 GHG emissions
By 2030, we’ll have delivered a 30% absolute
reduction in our Scope 1 and 2 GHG emissions.
1
11
%
2019
0%
2023
2030
target
30%
Scope 3 GHG emissions
By 2030, we’ll have delivered a 15% absolute
reduction in our Scope 3 GHG emissions.
1
20
%
2019
0%
2030
target
15%
2023
Renewable electricity
By 2030, 100% of the electricity we
purchase for our operations will come from
renewable sources.
12
%
2021
0%
2023
2030
target
100%
1 Approved as science-based by the Science Based Targets
initiative on a ‘Well Below 2ºC’ level, meaning they are in line with
the goals of the Paris Agreement.
June 2023 report
In June 2023, we published a
report titled ‘Protecting planet
and people through ingredient
innovation’, which set out how
ingredient companies like
Tate & Lyle can help food and
beverage customers play
their part in tackling the
climate crisis.
This report is available
on our website at
www.tateandlyle.com/
purpose/caring-for-our-
planet
56
Strategic report
Tate & Lyle PLC Annual Report 2024
Carbon footprint for the year ended 31 December 2023
1,2,3
(tonnes of CO
2
e)
All scopes
2023 2022 2021 2020 2019 (baseline)
Scope 1 (direct emissions from our sites) 337 085 364 920 363 079 366 218 379 510
Scope 2 (indirect emissions from the energy we buy) 161 099 163 565 175 159 176 799 179 255
Scope 3 (all other emissions associated with our activities) 2 575 853 2 873 167 3 011 586 3 099 198 3 200 930
Total 3 074 037 3 401 652 3 549 824 3 642 215 3 759 695
Scope 3 breakdown
2023 2022 2021 2020 2019 (baseline)
Purchased goods and services 812 908 940 282 1 085 269 1 078 782 1 086 845
Investments 746 037 748 359 781 363 876 593 955 867
Processing of sold products 658 506 825 389 798 370 798 370 798 370
Downstream transportation and distribution 157 484 157 779 157 779 157 779 157 779
All other Scope 3 131 918 130 918 106 023 106 023 119 305
Upstream transportation and distribution 69 000 70 441 82 783 81 651 82 766
Total 2 575 853 2 873 168 3 011 587 3 099 198 3 200 932
1 Baselines have been updated to reflect Tate & Lyle’s continuing operations after taking into account the acquisition of Quantum Hi-Tech.
2 The scope, principles and reporting methodologies used to calculate our environmental data can be found in ‘EHS Reporting Criteria’ at www.tateandlyle.com/purpose. For
GHG emissions, reporting methodologies used include the Greenhouse Gas Protocols, Environmental Reporting Guidelines: HM Government, 40 CFR Part 98 US EPA, and SBTi
Criteria and Recommendations.
3 Global GHG emissions figures include our UK operations. In accordance with the UK’s Streamlined Energy and Carbon Reporting (SECR) requirements, in the year ended
31 December 2023: total global energy consumption was 2,338,077 MWh and energy consumption for UK operations was 894 MWh; the global intensity ratio was 0.43 tonnes of
Scope 1 and 2 CO
2
e per tonne of production and for UK operations was 0.05 tonnes of Scope 1 and 2 CO
2
e per tonne of production; Scope 1 and 2 GHG emissions for UK
operations were 172 tonnes of CO
2
e.
4 UK operations use (996 MWh) represents 0.04%.
5 UK operations use (1,361 MWh) represents 0.09%.
6 UK operations use (1,235 MWh) represents 0.05%.
7 UK operations use (1,257 MWh) represents 0.04%.
Carbon footprint at 31 December 2023
(%)
11
84
5
Tonnes CO
2
e
Scope 1 – 337,085
Scope 2 – 161,099
Scope 3 – 2,575,853
Scope 3 breakdown at 31 December 2023
(%)
32
26
6
5
2
29
Tonnes CO
2
e
Purchased goods and services
– 812,908
Investments – 746,037
Processing of sold products
– 658,506
Downstream transportation
and distribution – 157,484
All other Scope 3 – 131,918
Upstream transportation
and distribution – 69,000
Energy use
1,2,3
(Gigajoules)
2019
7
2023
2022
4
2021
5
2020
6
8,983,582
9,055,871
8,919,467
9,077,926
8,417,076
Our carbon footprint
Environment continued
Progress in 2023
By the end of the 2023 calendar year, we had reduced our Scope
3 absolute GHG emissions by 20% from our 2019 baseline. This
compares to a 13% reduction at the end of the 2022 calendar year.
This means we have exceeded our target of a 15% reduction by
2030, seven years ahead of schedule. There are three reasons
for this.
• With production lower this year, our use of purchased goods
and services, such as ingredients and packaging, was also
lower.
• Having invested US$150 million to reduce GHG emissions,
including eliminating the use of coal, at three large US corn wet
mills that are now part of Primient (sold in 2022 and in which we
were a 49.7% shareholder at the end of the 2023 calendar year),
the benefit of those investments are reflected in our Scope 3
emissions (see table opposite). A proportion of Primient’s
emissions are included in the ‘investments’ category of our
Scope 3 emissions and, since Primient remains a supplier to
Tate & Lyle, we include emissions from the products we
purchase from Primient in the ‘purchased goods and services’
category.
• Our sustainable agriculture programmes, which promote
regenerative agricultural practices for corn in the US and for
stevia in China, have continued to perform well (this
improvement is reflected in the Scope 3 emissions ‘purchased
goods and services’ category in the table opposite). More
information about these programmes can be found on pages
58 and 59.
Strategic report Governance Financial statements Useful information
57
Tate & Lyle PLC Annual Report 2024
Through our sustainable agriculture
programmes we work with suppliers,
customers and external partners to accelerate
the adoption of regenerative farming
practices, focusing on the agricultural raw
materials where we have the biggest
opportunity to make a positive impact: corn
and stevia.
Sustainable agriculture is at the heart of solving the challenge of
feeding a growing population accessibly and nutritiously while
relieving the pressure on natural resources already under threat
from climate change. Through our sustainable agriculture
programmes, we work with suppliers, customers and external
partners to expand and accelerate the use of regenerative
agricultural practices, while ensuring the changes are financially
sustainable for our participating farmers in our corn and stevia
supply chains. This approach to farming is essential for
combating climate change because healthier soil increases the
amount of carbon captured from the atmosphere and improves
the resilience of crops; it also contributes to the overall health of
local ecosystems by improving watershed quality and supporting
greater biodiversity. Our programmes have a social dimension as
well: improving the personal and economic wellbeing of the
farmers and local communities that make up our corn and stevia
supply chains. Our sustainable agriculture programmes are
therefore at the heart of two pillars of our purpose: caring for the
planet and building thriving communities.
Our corn programme
Launched in 2018 in partnership with Truterra LLC, a leading US
resource stewardship solutions provider, our corn programme is
our most mature sustainable agriculture programme. Our corn
supplier, Primient, manages the overall programme and we
continue to partner with them, our customers and Truterra to
advance regenerative agricultural practices.
We remain committed to supporting sustainable acreage
equivalent to the volume of corn we buy each year, which in the
2023 calendar year was 367,000 acres. Our sustainable corn
acreage was lower than last year, primarily due to improvements
in corn yields in the US, which meant more of our corn came from
fewer acres. We also saw a small decrease due to reduced
production in our corn wet mills.
The corn used at our Sagamore facility in Lafayette, Indiana, US,
and the corn-based ingredients supplied by Primient are all
enrolled in the Truterra programme. We continue to invest in
broadening the programme, this year piloting a nitrogen
management project with our US-based waxy corn suppliers
(see opposite).
In Europe, we completed our second year of work to transition
to sustainably sourced corn for our facilities in Koog, the
Netherlands, and Boleráz, Slovakia. In 2023, 60% of our corn in
Europe was verified as sustainable either through the Sustainable
Agriculture Initiative (SAI) or ISCC PLUS, up from 48% in 2022.
Environment continued
Sustainable
agriculture
Progress against our commitment
367,000
acres of sustainable corn maintained, equivalent
to the volume of corn we purchased in the 2023
calendar year
Intervention programmes
Our sustainable agriculture programmes
aim to help farmers understand the impact
agricultural practice change and the adoption of
regenerative agricultural practices have on their
fields and their profitability, and to support
farmers in adopting them. We do this largely
through intervention programmes.
For example, in 2023, we piloted a nitrogen
management programme on more than
2,000 acres with our waxy corn suppliers in
Indiana, US. In its first year, this programme
resulted in a reduction in CO
2
e per acre.
Nitrogen is an essential nutrient and also a key
component of fertiliser. Reducing the amount of
nitrogen used has a direct link to the reduction of
GHG emissions as well as decreased run-off
into watersheds and improvements in soil health
and biodiversity.
What we mean by sustainable agriculture
Protecting the planet through regenerative agriculture
practices while improving the social and economic
wellbeing of the farmers and local communities that make
up our supply chain.
European corn
60
%
We procured 60% of the corn we used in our
European facilities from sustainable suppliers in
the 2023 calendar year.
We supported 367,000 acres of sustainable corn in 2023
58
Strategic report
Tate & Lyle PLC Annual Report 2024
Our stevia programme
We launched our sustainable agriculture programme for stevia
in China in 2021, in partnership with Earthwatch Europe and with
support from Nanjing Agricultural University.
Used to make low-calorie sweeteners, stevia is an increasingly
important part of our raw material supply chain. Our sustainable
agriculture programme for stevia, which we operate with a
number of smallholder farmers in Dongtai, Jiangsu Province,
helps them to understand better their environmental impact
through sampling, assessments and participation in workshops.
It has clear goals: reducing growers’ environmental impact;
improving productivity; and supporting their livelihoods through
greater profitability. The programme also includes a voluntary
agreement to sign up to Tate & Lyle’s Stevia Supplier Sustainability
Commitment, a pledge to reduce the environmental impact of
stevia farming.
Progress in 2023
Now in its third full year, the programme continues to focus on
optimising the use of fertiliser, due to its significant environmental
impact, particularly on GHG emissions and watershed quality.
Environment continued
Our sustainable agriculture programme for stevia supports smallholder farmers in China
The 2023 stevia growing season marked the first year in which all
participating farmers used organic fertiliser in place of urea and,
on average, this meant they used 74% less fertiliser overall. This
had a very positive environmental impact, as can be seen from
the figures in the column opposite, with our 2023 updated
lifecycle analysis showing significant reductions in GHG
emissions, soil acidity and ecotoxicity.
The programme, with its focus on regenerative agriculture
farming practices, is helping to build a more resilient supply
chain by mitigating the potential impacts of increasing seasonal
variability in weather in China (as highlighted in the water risk
assessment described on page 55). It’s been really positive to
see the cultural shift among the local farming community in
recognising its benefits.
Looking ahead
Our sustainable stevia programme continues to balance
improved agricultural practices by truly partnering with our
farmer suppliers to enable an economically viable crop and
livelihood. The programme and our farmers’ agricultural practices
continue to mature each year, building on successes and lessons
learned and sharing them with the local farming community.
Results from our stevia
programme’s 2023 growing
season1
74
%
reduction in the use of fertiliser by farmers
56
%
reduction in GHG emissions
90
%
decrease in terrestrial acidification (this shows
significantly improved soil health and
biodiversity, and improved availability of
nutrients to the stevia plant)
76
%
decrease in terrestrial ecotoxicity (measures the
impact that farming inputs, such as fertiliser,
have on land-dependent organisms and their
environment)
77
%
decrease in freshwater ecotoxicity (measures
the impact that farming inputs, such as fertiliser,
have on freshwater-dependent organisms and
their environment)
1 Per pound of stevia rebaudioside A produced, compared to a
2019 baseline.
Strategic report Governance Financial statements Useful information
59
Tate & Lyle PLC Annual Report 2024
In June 2022, we committed to becoming a
net zero business by 2050, and to accelerate
our environmental ambition and performance.
How we made our commitment to net zero
We analysed in detail what a net zero pathway by 2050 would
look like for our Scope 1 and 2 and Scope 3 GHG emissions. As
part of this work, we carried out comprehensive Scope 1 and 2
decarbonisation assessments at our four largest production
facilities, which together generate the vast majority of these
emissions. We then looked at the impact on our footprint of
changes in policies by governments or other organisations, and
decarbonisation commitments in our value chain including those
of our customers. We also considered other issues outside our
control that would affect our decarbonisation plans, such as the
decarbonisation of electricity from the grid and the electrification
of different types of transport, such as trucks and trains.
These assessments showed we could achieve net zero by
2050 in terms of Scope 1 and 2 GHG emissions through a
combination of electrifying our production facilities, using more
efficient steam generation, buying more renewable electricity,
building partnerships with utility providers to create renewable
electricity, and benefiting from the development of new
technologies like energy storage. We expect to largely eliminate
our Scope 2 GHG emissions by 2030 given our target to purchase
100% of the electricity we use in our operations by then from
renewable sources.
Overall, our analysis identified a pathway to reduce our total
carbon footprint by around two-thirds by 2050 from our 2019
baseline. The emissions making up the remaining third, where
we’re working to identify a pathway, are nearly all in Scope 3 and
are mostly from agriculture. That’s why sustainable agriculture
is so important for us, and partnerships to advance it will
continue to be so in the years ahead. More information on our
sustainable agriculture programmes are on pages 58 and 59.
Investing to accelerate our environmental performance
We expect the investments needed to meet our new 2028 Scope
1 and 2 GHG emissions reduction targets (see page 53 for more
details), as well as our other 2030 environmental targets, to be
within our annual capital and other expenditure programmes.
Beyond that, we expect our plans to evolve as new technologies
for low- or zero-carbon energy develop. Therefore, the
investments required to deliver net zero Scope 1 and 2 GHG
emissions after 2028 will depend on the speed of development,
and cost, of these technologies. In that context, it is not yet
feasible to put meaningful costs on our plans beyond 2028,
although we will do so as soon as we can. Similarly, for Scope 3
emissions, the cost of our corn and stevia sustainable agriculture
programmes are currently included in our operating costs. Over
time, we expect costs for these programmes to increase,
although at this stage it’s difficult to know by how much.
Evolving our plan with changing circumstances
We are committed to reaching net zero by 2050 by reducing our
Scope 1, 2 and 3 GHG emissions to as close to zero as possible
and neutralising residual emissions through limited external
carbon offset purchases. But we cannot do this alone. Much of
what is needed will depend on stakeholders across our value
chain, including our customers and suppliers delivering on their
sustainability ambitions. We’ll also need structural changes near
our facilities and at multiple points of our value chain to ensure the
infrastructure is in place both for us and for the organisations we
work with, to access enough low- or zero-carbon energy to run
our operations. While changes in policy, advances in technology
and many other factors will mean that our decarbonisation
trajectory will change as we move towards 2050, what won’t
change is our determination to deliver on our targets by 2028 and
2030, and to reach net zero by 2050.
Environment continued
Promoting sustainable agriculture will play an important role in our work to reach net zero
Our pathway
to net zero
60
Strategic report
Tate & Lyle PLC Annual Report 2024
Environment continued
Our pathway to net zero by 2050
1
Milestone
• Set Scope 1 and 2
GHG emissions
target for 2020
• Set Scope 1 and 2
and Scope 3 GHG
emissions targets
for 2030
• Targets approved by
the SBTi at ‘Well
below 2°C’ level
• Separation of
Tate & Lyle
and Primient;
2019 baselines
recalculated and
2030 targets
reaffirmed
• Set target that
100% of electricity
we purchase for our
operations to come
from renewable
sources by 2030
• Net zero by 2050
target announced
• Set more ambitious
Scope 1 and 2
and Scope 3 GHG
emissions targets
for 2028
• Targets approved
by the SBTi at
1.5°C level
• Targets set in
2024 are due to
be met at the end
of 2028
• Target set in
2022 due to
be met at the end
of 2030
• Net zero
target is due at
the end of 2050
Targ et
2020 target
19% GHG emissions
reduction per unit
of production
2025 target
Eliminate coal from
operations
2025 target
No deforestation
across our primary
deforestation-linked
commodities
2028 targets
GHG emissions
reductions:
Energy and Industrial
•
S
cope 1 and 2 GHG
emissions by 38%
3
• Scope 3 GHG
emissions by 38%
FLAG
• Scope 3 FLAG
emissions by 23%
4
2030 target
• Purchase 100%
renewable electricity
2050 targets
• Scope 1: Net zero
• Scope 2: Net zero
• Scope 3: Net zero
Delivery
Achieved
25% GHG emissions
reduction from 2008
baseline
Achieved
Eliminated coal in
October 2021
2019 baseline
We expect to deliver our pathway by a combination of:
1 Based on current expectations (assumptions subject to change based on future developments).
2 Percentage of total carbon footprint at 31 December 2023.
3 The target boundary includes land-related emissions and removals from bioenergy feedstocks.
4 The target includes FLAG emissions and removals. FLAG means forests, land and agriculture.
2017
2020
2025
2028
2022 2022
2030
2024 2050
Scope 1 (11% of our footprint)²
• Electrifying our production facilities
• Use of more efficient steam generation
• More use of renewable electricity
• Benefiting from the development of new technologies such as energy storage
Scope 2 (5% of our footprint)²
• Purchase 100% of the electricity we use across our operations from renewable
sources
• Investments and partnerships with utilities and utility developers to use existing
and generate new renewable electricity
Scope 3 (84% of our footprint)²
• Sustainable agriculture programmes (to be scaled up)
• Customers, suppliers and investments achieving their carbon reduction targets
• Decarbonisation of logistics and transportation supply chains
Strategic report Governance Financial statements Useful information
61
Tate & Lyle PLC Annual Report 2024
Progress against our 2030 target
By 2030, 100% of our waste will be beneficially used
90
%
2019
65%
2023
2030
target
100%
Our top five sites for beneficial use
of waste
Ossona, Italy
100
%
Mold, UK
100
%
Koog, the Netherlands
99
%
Guarani, Brazil
97
%
Boleráz, Slovakia
97
%
1 The 2019 baseline has been updated to reflect Tate & Lyle’s continuing
operations after taking into account the acquisition of Quantum High-Tech.
Our target is to beneficially use 100% of the
waste we generate by 2030. By that we mean
putting all the waste we generate to a positive
use for society or local communities, or
recycling it.
The plant-based ingredients we make in our manufacturing
facilities generate a significant amount of organic waste. This
waste is applied to land on local farms or used as compost to
provide nutrients that help enrich the soil, restore biodiversity and
improve plant growth. Waste that cannot be used on local farms
is either used for energy recovery, or is recycled.
Progress in 2023
In the 2023 calendar year, 90% of the waste we generated globally
was beneficially used. This is slightly lower than the previous year
(92%), mainly due to a reduction in beneficial use at one of our
larger sites, and the inclusion in our figures for the first time of our
Quantum Hi-Tech business, which we acquired in 2022. This
follows a period of rapid improvement, with our beneficial use
rising from 65% since 2019, and we always knew that our progress
would slow as we moved closer to our 100% target.
Every site has an annual target for beneficially using its waste,
and our people continue to do a great job of keeping waste
front-of-mind in their day-to-day work, and coming up with ideas
to improve waste performance. Our Ossona, Italy, and Mold, UK,
sites are already using 100% of their waste beneficially, and two of
our largest facilities, our corn wet mills in Koog, the Netherlands,
and Boleráz, Slovakia, are at 99% and 97%, respectively.
A number of our smaller sites also made strong progress in
2023 including:
• Guarani, Brazil, increased their beneficial use of waste from
63% to 97% through a local partner using wastewater treatment
sludge as compost.
•
V
an Buren, Arkansas, US, diverted starch waste from landfill
increasing their beneficial use of waste from 19% to 48%.
•
O
ur newly acquired Quantum Hi-Tech site in China made a
good start to their waste improvement programme with 44% of
its waste beneficially used in its first year of reporting.
Looking ahead
We remain focused on taking the steps required to achieve our
100% target by 2030. In some areas, external factors present a
challenge to making progress, such as a lack of local recycling
infrastructure for plastic waste for a few of our sites in the US. We
are looking at ways to solve this issue, as we have in Brisbane,
Australia, where a new partnership with a plastic recycler has
resulted in a material increase in the site’s beneficial use of waste.
We are pleased with our progress to date, but recognise we have
more to do to reach our target. We remain committed to building
partnerships that enable our waste to be beneficially used, and
our employees continue to be highly engaged in waste
management, with many of our local teams getting involved in
projects to clean up their local areas.
Environment continued
Using waste
beneficially
Organic waste from our plants are used as nutrients on local farms in the US
62
Strategic report
Tate & Lyle PLC Annual Report 2024
Risk report:
Introduction
We continued to build on our strong foundations,
focusing particularly on business continuity,
senior accountability and closer collaboration
between teams.
Navigating an increasingly complex world
We operate in an increasingly complex world, with growing
geopolitical uncertainty, more extreme weather events and the
increasing use of technology presenting various challenges for
our business and supply chain. These challenges have pushed
risk management further up the business agenda this year, while
continuing to test the resilience of our people and processes.
The foundations we’ve built in recent years, including our risk
policies, processes and training, continue to help us react quickly.
Nonetheless, the changing global environment means we have
to work harder to understand our risks and ensure our systems
remain fit for purpose. And because risk can affect multiple
aspects of our business, we’ve particularly focused on
strengthening the links between our risk management, financial
controls and ethics and compliance teams this year, and how
they work with our regional general managers.
More generally, we remain vigilant to ongoing risks like cyber
security, safety and financial controls, as well as continuing to
increase our focus on climate change as a key component of
our overall risk profile. This includes both physical risks such as
drought or flooding, and transition risks such as new laws and
regulations determining the transition towards a low-carbon
economy. To that end, this year we conducted a review, led by
our President of Global Operations, to assess the risks to our
operations and supply chain associated with climate change (see
pages 73 to 77 for more details), building on the climate change
risk assessment undertaken by external experts, AECOM, in 2021
and then updated in 2023. This review also looked at geopolitical
risks to our operations and supply chain.
This review is a good example of the work we’ve done to create
greater transparency and accountability for risk, particularly at
the highest levels of the company. It also demonstrates how we
are deepening the links between risk management, strategy and
decision-making.
Focusing on business continuity
Our Executive Committee plays an important role in developing a
strategic review of our risk landscape. This year, for example, the
Committee took part in a cyber security crisis simulation exercise
to better understand the risks of a cyber attack and to identify
areas for improvement, such as communication, governance and
accountability.
This exercise led us to roll out a wider piece of work to review our
business continuity plans across the company, and ensure our
crisis management is appropriately embedded within our risk
management framework. It included business continuity tests at
all our sites, and a review by our procurement team to ensure we
always have multiple sources of supply for key materials. This
helps us balance the risk of disruption while maintaining our focus
on quality and cost.
Managing compliance risk in our supply chain
We screen all new suppliers, and this year we conducted around
120 due diligence reviews of our higher risk suppliers, mostly in
markets where recently acquired businesses operate. We also
continued to build on our supplier audit programme. While we still
prioritise our highest-risk areas, based on the nature of the supply
chains or their importance to us, we have begun to broaden our
scope to include some lower-risk suppliers as well. In all, this year
we completed 102 supplier audits.
To fully understand the risks in our supply chain, we need to go
beyond our direct suppliers to their suppliers too. This can be a
challenge, given the breadth of our business, and the fact that we
have so many small suppliers in the agricultural supply chain.
This year we completed work to map all our direct suppliers,
although we did not get as far as we had planned on mapping our
indirect suppliers. It will remain a priority for the coming year.
A risk mindset for our new businesses
In recent years we’ve paid particular attention to our newer
businesses and markets to help embed a compliance and risk
mindset into everything our people do. We have carried out
specific ethics and compliance training, making sure our new
colleagues understand the expectations we set out in our Code
of Ethics and that they are aware of our Speak Up whistleblowing
line. We’ve also done a lot of work to help our commercial
teams strengthen their skills to spot and report misconduct in our
value chain.
Thanks to this work we’ve seen a shift in people’s understanding
of what good risk management and ethical behaviour looks like.
We’ve also seen greater engagement, with a growing number of
reports through Speak Up from our newly acquired businesses,
and from our higher-risk regions, Asia, the Middle East and Africa.
This has helped us take action where needed, to ensure that we
are minimising the risks of doing business in these regions.
Looking ahead
Managing risk well is all about vigilance. With the broader
geopolitical and macroeconomic landscape expected to remain
challenging, we will continue to heighten our focus on risk,
evolving our approach as the risk landscape changes, so that
whatever risks we face, we are best equipped to deal with them.
Modern Slavery Statement
Our statement on anti-slavery and human
trafficking can be found on our website at
www.tateandlyle.com/anti-slavery-statement
Strategic report Governance Financial statements Useful information
63
Tate & Lyle PLC Annual Report 2024
Risk report continued
To ensure we have systems and processes in place that provide
fast, reliable information, we’ve created a uniform approach to risk
that makes it easier for our teams to gather the right information
and take the right action. It also helps us assess the impact and
effectiveness of mitigating actions.
We’ve evolved our approach to managing project risk in areas
like capital investments, acquisitions and innovation, clearly
defining when we need to carry out a full risk assessment based
on specific criteria, including financial value. All our work is
supported by an enterprise risk management process that allows
us to log, track and report on risks, including climate-related
issues, in a consistent way. This process was updated in
July 2023 to reflect the findings of our climate change risk
assessment, or CCRA. It also helps our Executive Committee
members stay closely connected with the risks they’re each
responsible for, and relate them to the overall picture of our risk
profile. This year we began to enhance our strategic risk
management approach to ensure risks and opportunities are
more clearly identified and mitigations monitored effectively.
Identifying risks
Each year we regularly carry out bottom-up and top-down
reviews of our principal risks, namely those that could threaten
our business model, strategy, performance, solvency or liquidity,
looking at a three-year horizon.
The bottom-up process involves a rolling programme of
workshops held around the business, facilitated by our risk team.
These workshops help us to identify current and potential risks,
which we then collate and report through functional and divisional
levels to our Risk Committee and Executive Committee.
We also consider any areas and behaviours that could bring
about new risks, and different combinations of risk with other
potentially larger impacts. Through these processes, we identify
our main business, strategic, financial, operational, environmental
and compliance risks and create action plans and controls to
mitigate them to the extent appropriate to our risk appetite.
We have a single, Group-wide programme to identify, analyse and assess risks, and then to determine how we manage, control and
monitor them.
Three lines of defence
We manage significant risks at three distinct levels.
1
Risk ownership and control
Our business and operational managers identify risks and create policies and procedures to maintain effective controls day-to-day.
They also update our front-line controls regularly in response to our changing risk profile.
2
Monitoring and compliance
Our Group functional teams help management to monitor key risk areas and make sure the first line of defence is working as intended.
These teams include risk management, finance, quality, ethics and compliance, and environment, health and safety. They identify
current and emerging risks, and ensure we address any changes in the risk landscape in good time. They also consider what the
effects might be if a combination of certain risks materialises together.
3
Independent assurance
Our Group Audit and Assurance team (internal audit) and external assurance providers give independent assurance over our
risk management, control, and governance processes and systems.
Oversight
We oversee risk management at Group and operational levels to ensure it is governed well. This includes governance of
climate-related risks.
Board
Our Board has overall responsibility for how we manage and control risk, and for setting the Group’s risk appetite. Every year, the
Board thoroughly assesses our principal risks to determine the nature and extent of risk necessary to achieve our strategic objectives.
They also evaluate emerging risks.
Executive Committee
Executive Committee members oversee and direct risk management in line with their respective responsibilities. They review our
principal risks and risk appetite, ensuring these remain relevant. They also evaluate the potential impact of emerging risks.
Risk Committee
Our Risk Committee, which reviews the annual risk assessment plan (approved by the Audit Committee on behalf of the Board),
considers and challenges how the business assesses risk, looking at both single risks and combinations of risk. Each quarter, it
reviews principal and emerging risks and progress against actions, and conducts a deep dive into agreed strategic risk areas.
How we manage risk
Risk report:
Our approach to risk
64
Strategic report
Tate & Lyle PLC Annual Report 2024
Risk report continued
Viability statement
The top-down review involves the Risk Committee and the
Board assessing the output of this work, confirming that we
have captured and addressed our principal risks, and that we
have considered our emerging risks. Our risk profile does of
course evolve, and the Board updates its view of principal risks
accordingly. This year we made no changes to our principal risks.
Determining our risk appetite
As part of our annual risk assessment process, our Board and
Executive Committee consider the nature and extent of our risk
appetite in relation to our principal risks. The outcome of this
exercise informs our strategic planning activities, and helps us set
the level of mitigation needed to achieve our strategic objectives
– accepting, of course, that some level of risk is necessary.
Managing risks
Individual members of the Executive Committee are responsible
for managing the risks and mitigating controls relating to their
area of accountability. Senior management formally confirms to
the Audit Committee once a year that risks are being managed
appropriately in their areas of responsibility, and that controls are
in place and effective.
The main area of focus this year was around business resilience
and, in particular, business continuity and climate-related risks.
On business continuity, we ran a number of tests across the
business including audits of three of our largest sites by
external experts. We also implemented a new enterprise crisis
management process. An explanation of actions taken on
climate-related risks is provided separately on pages 68, 75
and 76.
Emerging risks
Our Risk Committee reviews emerging risks to the business
regularly – at least every quarter – and reports any changes to
the Board. We have an enterprise risk management team that
carries out horizon-scanning to monitor any potential disruptions
that could dramatically change our industry and/or our business,
from both a risk and opportunity perspective. These risks are
reviewed by the Risk Committee and communicated to the
Executive Committee to help them understand the changing
landscape and take appropriate action.
Climate-related risks
The Board recognises the significant risks posed by climate
change, which we consider as part of our enterprise risk
framework and review regularly. The increasing importance
of climate-related risk is reflected in our principal risk, climate
change and sustainability, which we introduced in the 2023
financial year. This is in addition to climate change being a core
element of a number of our other principal risks. Our Chief
Executive is ultimately responsible for the Group’s preparedness
and response to climate-related risks and opportunities.
Our business continuity testing during the year included a
climate-related element. We also have increased our focus on
climate-related and other sustainability-related matters in our
enterprise risk management work. This included reviewing the
impact that extreme weather events have had on our business
over the last five years, and the lessons learned. This review
established that our supply chain has considerable resilience and
that we are currently well placed to respond to increases in the
frequency and severity of climate-related hazards. We also have
good procedures to cope with extreme weather conditions.
Areas for improvement include the need for greater flexibility in
our raw material supply chain, for example to ensure we have
more than one region where we can source key raw materials
such as waxy corn. We are taking steps to address all the findings
from this review. We provide more information in our Task Force
on Climate-related Financial Disclosures (TCFD) statement on
pages 73 to 78.
In accordance with the requirements of the UK Corporate
Governance Code, the Directors have assessed the viability of
the Group, taking into account our current position and the
potential impact of the principal risks we face.
Although our strategic plan, which the Board reviews annually,
forecasts beyond three years, we create a detailed three-year
financial plan. This plan includes anticipated capital and
funding requirements. For this reason, the Directors agree that
it is appropriate to assess our viability over a three-year period
to 31 March 2027.
To assess our viability, we stress-tested our strategic plan
under two downside scenarios which might affect our potential
viability if one or more of the downside risks set out below were
to occur. We assessed the potential impact of these scenarios,
individually and in aggregate, both before and after mitigating
actions within our control.
The two downside scenarios modelled were:
• A major operational failure causing an extended shutdown
of our largest manufacturing facility
• The loss of two of our largest Food & Beverage Solutions
customers.
We measured the impact of these risks by quantifying their
individual and aggregate financial impact on our strategic plan,
and on our viability when set against measures such as
liquidity, credit rating and financial covenant requirements.
We also considered operational and commercial impacts.
This exercise showed that, over this three-year period, the
Group would be able to withstand the impact of the most
severe combination of these risks.
At 31 March 2024, the Group has significant available
liquidity, including £437 million of cash and US$800 million
(£633 million) from a committed and undrawn revolving credit
facility which matures in 2029. The next earliest maturity date
for any of the Group’s US Private Placement Notes is October
2025, when US$180 million will mature. For the purposes of the
viability statement, it is assumed this amount is repaid in cash.
Based on this assessment, the Directors have a reasonable
expectation that we will be able to continue operating and meet
our liabilities as they fall due between now and 31 March 2027.
Strategic report Governance Financial statements Useful information
65
Tate & Lyle PLC Annual Report 2024
Risk report continued
Strategic risks
1 Strategy delivery
2 Innovation
3 People and talent
4 Climate change and sustainability
Operational risks
5 Operating safely
6 Product quality
7 Supply chain
8 Business disruption
9 Cyber and IT resilience
Legal, regulatory and
governance risks
10 Legal and compliance
11 Financial controls
12 Regulatory and trade policies
Key to the risks
Strategic
Operational
Legal, regulatory and governance
Impact
Likelihood
11
3
1
5
9
2
8
12
74
10
6
Our principal risks are the high-level risks that could threaten our
business model, strategy, performance, solvency or liquidity,
considered over a three-year horizon. We define our principal
risks in three categories:
• strategic
• operational
• legal, regulatory and governance.
The Board reviews our principal risks at least twice each year.
This year we made no changes to our principal risks. The heat
map opposite illustrates the relative positioning of our principal
risks at the date of this Annual Report.
In relation to risk trends, each principal risk remains the same as
last year, other than Cyber and IT resilience, which we now see as
increasing. This is mainly due to the increasing prevalence of
cyber attacks. As shown last year, we continue to see the risk
trend of two other principal risks increasing:
• Climate change and sustainability as more frequent extreme
weather events occur across the world.
•
Regulatory and trade policies given the many political elections
taking place around the world this year and a greater focus on
the level of processing and nutritional content of foods.
Risk report:
Principal risks
66
Strategic report
Tate & Lyle PLC Annual Report 2024
Risk report continued
Risks How we mitigate the risk What we’ve done this year Risk trend
Strategic risks
1. Strategy delivery
Failing to grow Tate & Lyle would
prevent us from delivering our Group
targets. This could reduce our
profitability in both the short and long
term and damage investors’ view of us.
Revenue and EBITDA growth, and M&A
activity, are key components of how we
will successfully grow our business, and
we have a five-year strategic plan in
place to support this.
• Our organic and acquisitive growth plan supports our strategy. We have global
and regional five-year plans focused on key categories.
• Our Board regularly reviews and challenges the strategic direction of the
business to help us stay competitive and successful in our chosen markets.
• Our Executive Committee regularly reviews our strategic progress and
financial performance, as well as the opportunities in our markets and
competitor activities.
• Our M&A team works closely with Innovation and Commercial Development
(ICD) and Food & Beverage Solutions to identify acquisitions and partnerships
that will help us grow.
• We have incentive schemes and bonus programmes in place for customer-
facing teams that are tied to strategic, commercial and operational targets.
• We strengthened our customer offering and presence in Asia with the
integration of our acquired stevia and tapioca businesses, as well as Quantum
Hi-Tech, a leader in FOS and GOS dietary fibres in China.
• We invested in further building our solution selling capabilities in areas such as
sensory and open innovation.
• We executed targeted programmes to develop new ways of working with
customers to build stronger solutions-based partnerships.
• We expanded our global network of Customer Innovation and Collaboration
Centres, opening a new Centre in Jakarta, Indonesia.
• We continued to build our technical services capabilities in Asia, the Middle
East, Africa and Latin America – a process we began last year to accelerate our
business presence in higher growth markets.
• We launched a number of online tools to continue to support and build
connections with our customers. These include our Communities of Practice for
dairy and beverage, and our Technical Exchange Forums for areas such as
plant-based products.
2. Innovation
Developing and commercialising
new products is essential to our ability
to lead the industry in our chosen
categories, and, therefore, to the
long-term growth of our business.
Without them, we might be unable
to meet our customers’ future
requirements, which could damage
our performance and reputation
and result in customers switching to
our competitors.
• We have a robust innovation process, based on both in-house development
and external open innovation, which delivers a strong pipeline of new
ingredients and solutions for our customers.
• Our ICD team monitors consumer and category trends and works closely with
commercial partners to ensure new products and solutions meet our
customers’ needs.
• Our ICD team connects with external organisations, including biotech, pharma,
and food technology ecosystems, to identify and make the most of scalable
innovation and new product opportunities.
• We prioritise opportunities to partner with our customers to accelerate
development cycles and bring new products to market more quickly.
• Our investment in innovation and solution selling capabilities, increased by 5%.
• New Products revenue grew by 13% on a like-for-like basis (ie no products are
removed from disclosure due to age).
• Solutions revenue from new business wins increased by 3ppts, to 21%.
• We launched nine New Products into the market including TASTEVA
®
SOL
Stevia sweetener, a patent-protected breakthrough in stevia technology to help
customers solve stevia solubility challenges.
• We invested in a new automated lab at our Customer Innovation and
Collaboration Centre in Singapore with advanced technology to accelerate the
development and speed-to-market of mouthfeel solutions.
• We improved our approach to developing and deploying ingredients as part of a
solution, in particular by embracing our global solutions chassis approach.
• We added 61 patents to our patent portfolio and now have over 540 patents
granted and over 220 pending.
Trend compared with 2023
financial year
Our principal risks
Increasing
Unchanged
Decreasing
Strategic report Governance Financial statements Useful information
67
Tate & Lyle PLC Annual Report 2024
Risk report continued
Risks How we mitigate the risk What we’ve done this year Risk trend
Strategic risks continued
3. People and talent
It is critical that we have the right people
with the right capabilities to be a
successful and purpose-led global
business and deliver our strategy. We
have strategies in place to recruit,
develop, engage and retain our people,
and to build a diverse and inclusive
workforce.
• Our talent development plans give employees opportunities and training to
build their capabilities and resilience.
• We have set several 2030 targets to track our progress on delivering equity,
diversity and inclusion.
• We have initiatives in place at Group, local and functional levels to progress
equity, diversity and inclusion across the organisation. We also have
employees dedicated to developing and measuring our progress against our
equity, diversity and inclusion targets.
• We have a mix of short- and long-term incentives, including a bonus scheme
that is available to a broad number of employees.
• We have a single global performance management system and talent
planning process.
• We carry out global employee surveys that tell us what employees really think
about working at Tate & Lyle.
• Our Executive Committee and the Board plan succession for business-critical
roles.
• We encourage our people to share open and transparent feedback so we can
react to any challenges that emerge.
• We focused on maintaining competitiveness by updating our reward framework
to ensure it reflects current local conditions.
• We have a Group-wide programme to support the physical and mental
wellbeing of our employees.
• We carried out a global employee engagement survey managed by an external
organisation. The response rate was high at 80% and showed an encouragingly
strong level of employee engagement.
• We have seven Employee Resource Groups which play an important part in
enabling employees to experience solidarity, support, education, growth and
development.
• We are strengthening our performance management system to create clear
strategic alignment for our teams, as well as introducing a more frequent
development conversation cycle and clarity of reward outcomes.
• We launched a new management training programme, Connect Catalyst, to
help our managers create an engaging, inclusive and high-performing
organisation. More than 200 managers have taken part so far.
• We completed a talent review for all employees to understand their capabilities,
aspirations and potential and how that connects with future development and
succession opportunities.
4. Climate change and sustainability
Climate change risks, both physical and
transition, such as extreme weather
events, temperature rises, water stress
and increased regulation, may increase
volatility in our raw materials supply
chain and production costs. They may
also lead to capacity constraints and
higher costs of compliance. In addition,
failing to meet our sustainability goals
could result in financial loss and
reputational damage among
customers, consumers, investors and
other stakeholders.
• Caring for our planet is one of the three pillars of our purpose, and considering the
impact of climate change is embedded into our key processes, including capital
investment, new product development and acquisitions.
• We have established a governance process to oversee and monitor our
sustainability programme, including a Sustainability Committee that is chaired
by the Chief Executive and meets at least twice a year, and a Sustainability
Working Group that meets at least monthly.
• We have set Group targets to reduce our absolute greenhouse gas emissions,
our water use intensity and to ensure we beneficially use our waste. We also
operate sustainable agriculture programmes.
• Each site is set sustainability goals each year as part of the annual planning
process.
• We run communication programmes to highlight the impact of climate change
and encourage our employees to help us reduce our impact on the planet.
• Our risk management and sustainability teams work alongside the business to
identify potential risks associated with resource scarcity, particularly within
sourcing key raw materials, manufacturing, water and energy, and look for ways
to mitigate those risks.
• We encourage our people to help us lower our impact on the planet while
improving efficiency through our J2E programme (see pages 41 to 43).
• We continue to make good progress against our sustainability targets and
commitments.
• In May 2024, we announced ambitious new Scope 1 and 2 and Scope 3 GHG
emissions targets to 2028. These targets have been validated by the Science
Based Targets initiative and are aligned to a 1.5ºC trajectory.
•
T
hrough our sustainable agriculture programme with Truterra LLC in the US, we
maintain sustainable acreage equivalent to the volume of corn we buy globally
each year (367,000 acres in 2023).
• We continued to deliver a positive environmental impact through our
sustainable stevia agriculture programme in China, working in partnership with
the NGO, Earthwatch Europe, and Nanjing Agricultural University.
• Our facility in Guarani, Brazil, became our first site to be 100% powered by
renewable energy, and our facilities in the Netherlands, UK and Italy are buying
100% of their electricity from renewable sources.
• We carried out an analysis of the impact of climate change on our operations
and supply chain to identify key climate-related issues that are affecting our
business currently, and could have an impact in future, to help us prioritise
actions to mitigate those risks.
• We carried out a water risk assessment at our main facilities and across our
corn and stevia supply chain.
68
Strategic report
Tate & Lyle PLC Annual Report 2024
Risk report continued
Risks How we mitigate the risk What we’ve done this year Risk trend
Operational risks
5. Operating safely
Safety is not just a priority at Tate & Lyle,
it’s foundational. Failure to comply with
laws and regulations relating to health,
safety and the environment could result
in us being unable to protect our
employees, stakeholders and the wider
communities where we operate. It could
also lead to fines and have a negative
impact on our reputation.
• We have a continuous improvement plan for Environment, Health, Safety,
Quality and Security (EHSQS) in place at all our sites (also known as the J2E).
It is visibly sponsored by the Chief Executive and Executive Committee.
• Our EHS Advisory Board, which includes our Chief Executive, receives EHSQS
updates and reviews performance quarterly. Our Executive Committee and
Board regularly review safety performance and progress against J2E.
• We have an Incident Review Board which conducts reviews of major, severe or
potentially severe events.
• We use a cloud-based tool called Benchmark to manage EHS data and
facilitate EHS reporting.
• We saw a significant improvement in our safety performance with the
recordable incident rate 41% lower and the lost-time rate 38% lower.
• In J2E, 60% of our plants and 38% of offices and labs had passed tollgate 5 by
the end of March 2024, with three sites having passed tollgate 7.
• We continued to deliver a major shift in risk awareness through our combustible
dust and chemical management programmes.
• We continued to focus on employee wellbeing as part of our J2E programme.
6. Product quality
Poor quality products could cause
safety issues and damage our
reputation and relationships with
customers. This could have a negative
effect on our performance and
corporate reputation.
• We have strict quality control and product testing procedures in place.
• We regularly test our recall process.
• We have a third-party audit programme, supplemented by internal compliance
audits.
• We assess our raw material suppliers, tollers and third-party warehouses for
food safety and quality risks.
• We have a programme to manage allergens in our supply chain and ensure our
ingredients are either free from allergens or that any allergens are disclosed.
• Our Quality Incident Review Board investigates incidents and shares lessons
learnt across our sites.
• We have a governance process in place for Tate & Lyle and Primient to
regularly review compliance with our long-term supply and other agreements.
Amongst other things, these determine the safety and quality standards that
products sold to each business must meet.
• We successfully started up our new quality lab within our facility in Hoffman
Estates, Illinois, US, complete with ISO certification.
• Our product recall processes were validated by our insurance company, and we
carried out recall simulation exercises.
• We fully implemented our environmental monitoring programme at all our
locations.
• We simplified our Food Safety Incident Management programme, including
implementing a steering committee and delivering training.
• We transitioned all our manufacturing facilities to the ISO-based FSSC 22000
GFSI (Global Food Safety Initiative) scheme.
• We developed and implemented a professional development programme for
quality team members.
• We refreshed our ‘management of change’ (MOC) processes to enhance our
compliance from a quality, legal and regulatory perspective.
Strategic report Governance Financial statements Useful information
69
Tate & Lyle PLC Annual Report 2024
Risk report continued
Risks How we mitigate the risk What we’ve done this year Risk trend
Operational risks continued
7. Supply chain
Fluctuations in crop prices could affect
our margins. Climate and weather-
related events, disease, lower yields,
competition for acreage and freight
restrictions can affect crop availability
and, therefore, price. We may not be
able to pass the full change in raw
material prices, or higher energy, freight
or other operating costs, on to our
customers. Our margins may also be
affected by customers not taking
expected volumes.
• We have strategic relationships and multi-year agreements with suppliers and
trading companies.
• We increase the security of our supply through our raw material and energy
purchasing policies.
• We have a governance process in place for Tate & Lyle and Primient to
regularly review the delivery of the long-term supply agreements we have in
place, as well as related corn procurement services.
• We benefit from the scale and expertise of Primient’s corn procurement
services. This provides security of supply and allows us to lock in corn prices
when we secure customer contracts, reducing cost volatility.
• We maintain a good working relationship with KPS Capital Partners, the
majority shareholder in Primient.
• The raw material procurement team continued to manage corn supply across
the European corn sourcing regions for both dent and waxy corn.
• We identified new sourcing regions and suppliers for dent and waxy corn in
Europe, and agreed new waxy corn contracts to support our volume growth.
• We review and renew our energy supply contracts every year or, where
required, we adjust them to manage supply and price conditions.
• To further build resilience, we undertook a review of the impact of climate
change on our logistics and raw material supply chain over the last five years,
looking at the mitigations we had put in place, and their effectiveness. The
lessons learned and subsequent actions are increasing the resilience of our
supply chain.
• We hold monthly sessions with Primient to manage key supply topics, including
short-term adjustments in supply and medium-term forecasting.
8. Business disruption
Business disruptions can occur for a
range of reasons, including pandemics,
natural disasters and geopolitical
turbulence. There are also many risks in
operating our plants that could cause
breaks in production, leading to
disruption in our business and a
deterioration in customer service. In all
cases, this could affect our financial
performance and damage our ability to
grow our business.
• We have a global business continuity management framework in place to
enable effective recovery from a major disruption.
• Our Risk Committee oversees existing and emerging risks to ensure mitigating
actions are in place wherever possible to meet customers’ needs.
• Having plants in different regions and countries means we can continue to
serve customers where practical if a particular area or plant is disrupted. It also
diversifies our business into different markets and geographies.
• Our plant network has a preventative maintenance programme.
• Our customer service team is part of Global Operations so works closely with
our plants, enabling us to be agile and responsive to customer needs.
• We have contingency plans in place to manage, as far as possible, disruption
such as extreme winter weather.
• We have a governance process in place for Tate & Lyle and Primient to
regularly review the delivery of our long-term supply and other related
agreements.
• We undertook business continuity tests at all our sites.
• Our Manufacturing Excellence programme continues to support our ability to
operate safely and efficiently. It is a process of continuous improvement across
the business to drive safe working practices, strengthen resilience and develop
our wider safety culture.
• We enhanced our sales and operational planning programme by using
technology to improve our ability to forecast effectively and strengthen how we
supply customers.
•
W
e introduced a Global Enterprise Crisis Management Policy and strategy to
strengthen our ability to manage large-scale business disruption.
• We undertook a review of the impact of climate change on our manufacturing
facilities, logistics and raw material supply chain over the last five years, looking
at the mitigations we had put in place and their effectiveness. The lessons
learned and subsequent actions are increasing the resilience of our business.
• We also carried out an analysis of the impact that geopolitical turmoil and trade
restrictions could have on our operations, supply chain and key products, and
the mitigations we have in place, and their effectiveness.
70
Strategic report
Tate & Lyle PLC Annual Report 2024
Risk report continued
Risks How we mitigate the risk What we’ve done this year Risk trend
Operational risks continued
9. Cyber and IT resilience
We need to maintain the continuing
operation and security of our
information systems and data. A cyber
security breach, whether from human
error, deliberate action or a technology
failure, could lead to unauthorised
access to, or misuse of, our information
systems, technology or data. This, in
turn, could result in harm to our assets,
data loss and business disruption – and
it could create legal risks and
reputational damage.
• Our cyber security programme focuses on maintaining and strengthening
our defences in terms of our processes, people and technology.
• We run compulsory cyber security awareness training for our employees,
which includes simulated phishing campaigns.
• We have robust cyber security defences, including a continuous
programme to detect threats and vulnerabilities, and we carry out
independent penetration tests.
• Our plants run on separate IT systems, which increases their resilience.
• We have a 24/7, third-party security operations centre to deal promptly with
any issues.
• We have an investment plan in place to update ageing equipment and address
new threats as they emerge.
• As part of the integration process, acquisitions are aligned to our operational
and cyber security model.
• We improved our email protection by using new monitoring technology.
• We introduced new reporting and dashboard capabilities across our cyber and
operations landscape.
• We completed the integrations of businesses acquired in Asia to ensure they
align with our operational and cyber model.
• We established a separate IT security environment for China, to improve our
resilience.
• We replaced equipment that had reached the end of its useful life and that we
could no longer maintain effectively within our operations.
Legal, regulatory and governance risks
10. Legal and compliance
If we don’t meet our legal and/or
regulatory obligations, our relationships
with customers and suppliers are likely
to suffer. We could be subject to
contractual claims, face threats to our
licences and, in extreme cases, risks to
our directors and officers. This could
also affect our performance and
corporate reputation.
• Our legal and regulatory teams work closely with colleagues around the world
to identify our legal and regulatory risks and provide advice and solutions to
mitigate them.
• We regularly monitor legal and regulatory developments to make sure we
understand how any changes could affect Tate & Lyle.
• We regularly review our key policies and training material, and update them
as needed.
• We run a comprehensive legal and ethics and compliance training programme.
•
W
e have a third-party whistleblowing service that allows our employees to
raise concerns anonymously if they’re not comfortable speaking up internally.
•
W
e have lawyers in each region who work with colleagues to identify and
mitigate relevant legal and regulatory risks.
• We further embedded our contract documentation processes, including
the tracking of customer terms and conditions, and provided training to
sales teams.
• We worked with our procurement team to review the effectiveness of our legal
and compliance processes for suppliers and implemented improvement
opportunities identified.
• We continued to run our annual legal, ethics and compliance training across the
organisation, including training on our Code of Ethics, anti-trust/competition,
modern slavery, criminal finances and trade secrets (all with at least 98%
compliance completion rates).
•
W
e reinforced our sanctions procedures and continued to provide training to
relevant employees.
• We continued to expand our Responsible Sourcing Programme with further
audits completed of existing Tier 1 suppliers and further due diligence on new,
high-risk suppliers.
Strategic report Governance Financial statements Useful information
71
Tate & Lyle PLC Annual Report 2024
Risks How we mitigate the risk What we’ve done this year Risk trend
Legal, regulatory and governance risks continued
11. Financial controls
Without effective internal financial
controls, we could be exposed to the
risk of fraud and error in our financial
reporting, as well as losses from events
which could affect our performance
and ability to operate.
• We have a well-established framework of financial policies and standards
supported by procedures and controls over key processes. Where possible,
these controls are automated, and we maximise the use of preventative
controls.
• We monitor the design and operating effectiveness of controls on an ongoing
basis and regularly report the results to the Audit Committee and Executive
Committee.
• We have several forums to monitor and manage the effectiveness of our
financial controls, such as our quarterly regional Control Environment Councils,
chaired by the relevant General Manager.
• The Chief Executive and Chief Financial Officer review the business and
financial performance at least monthly.
• At both the half year and the end of the financial year, the Executive Committee,
Audit Committee and Board receive confirmation that minimum control
standards are operating effectively.
• Our well-resourced Group Audit and Assurance team provides independent
assurance to our Executive Committee and the Board.
• We continued to invest in our financial controls function and our centres of
excellence within our Global Shared Services Centre in Poland.
• We continued to evolve our Risk and Controls matrix to ensure that our controls
adapt to mirror changes within the organisation along with increasing levels of
automation across multiple process areas.
• We continued to leverage our Finance Global Process Ownership forum, to
maintain the consistency and effectiveness of financial controls at all Group
locations.
• We continued to invest in training to ensure control owners fully understand their
responsibilities and accountabilities.
• We continued to leverage technology to enhance our control environment and
support our key financial processes.
12. Regulatory and trade policies
The regulatory status or perception of
our ingredients could be affected by
things like changes in customers’ or
consumers’ attitudes, changes in
food laws and regulations, and/or
campaigns targeted at specific
ingredients or technologies. These
could affect our ability or freedom
to operate. Government actions or
policies could also impose import/
export limitations and other barriers
on our business. These could lead to
additional costs, restrict our growth
and limit our ability to operate in
certain markets.
• The science behind our ingredients, for example health claims or nutritional
impact, is supported by credible sources and is communicated clearly to, so
that it is understood by, the relevant regulatory authorities.
• Our global regulatory team, supported by external consultants, monitors any
local regulatory requirements that affect our products.
• Our global nutrition team initiates and monitors research and publications on
the use and functionality of our ingredients and maintains a global advisory
network of health and nutrition clinicians, academics and experts.
• We work closely with thought-leading customers around the world to jointly
focus on the science and consumer benefits of our ingredients.
• We are members of trade organisations that give us access to broader sources
of information and provide, where necessary, a single voice for our industry on
issues of both regulatory and public interest that affect our ingredients.
• We engage with political parties, influencers and regulatory authorities in the
main countries where we operate.
• We worked with national and state trade associations, as well as local
authorities in several key countries where we operate, including the US and
China to progress our commercial and sustainability goals.
• We continued to develop our regulatory team in the Asia, Middle East, Africa and
Latin America regions to strengthen our relationships with regulators in these
markets.
•
W
e continued to invest in our Global Nutrition team with funding for studies that
support the safety and efficacy of our ingredients and maintain differentiation
against competitors.
• We expanded our advocacy programme in key markets, including building
partnerships with customers and participating on the boards and committees
of key trade associations. This included working with trade associations and
other nutritional bodies to improve understanding about the importance of the
nutritional content of food, rather than the level of processing, as well as the
benefits of low- and no-calorie sweeteners to help people reduce their calorie
and sugar intake.
• We continued to expand our online Nutrition Centre, which includes
independent scientific contributions by external experts on key topics of public
health and on our ingredients.
Risk report continued
72
Strategic report
Tate & Lyle PLC Annual Report 2024
Task Force on Climate-related
Financial Disclosures
Nature provides the water, air and food – part of what’s known as
ecosystem services – to sustain life, as well as many of the raw
materials that support human prosperity and long-term health.
But human activity is having a detrimental impact: our natural
habitats are deteriorating and biodiversity is declining faster than
at any time in human history.
Since our business and supply chain are both reliant on, and part
of, those ecosystem services, we understand how important it is
that we make our products in ways that lower our impact on the
natural world. In doing so we can also minimise the risk nature-
related issues pose to our business.
We are working to adapt to changes brought by climate- and
nature-related issues by understanding the material issues that
matter to our stakeholders and where we can have most impact
(see page 52 for details). We are also incorporating climate-related
risks into our enterprise risk management (ERM) system. In 2022,
the Board implemented a new principal risk, ‘climate change and
sustainability’, which includes nature-related risks.
As discussed in the Environment section on pages 52 to 62, we
have a robust governance structure in place to embed climate
change risks and opportunities into our day-to-day thinking and
at all levels of the business. It includes considering the:
• Potential climate- and nature-related issues as part of our
five-year strategic planning process
• Environmental impact or benefits of capital investments as part
of our capital approval process
• Carbon footprint of potential acquisitions and of new products
being developed in our innovation pipeline.
Additional strategy disclosures
Our operations are exposed to a wide variety of physical climate
risks, as well as the opportunities and risks associated with the
transition to a low-carbon economy.
Working with sustainability experts, AECOM, in 2021, we carried
out a physical and transition climate change risk assessment
(CCRA) of our production facilities and the key raw materials in
Introduction
The climate and nature crises are two of the most urgent
challenges facing the world today. And while we have a
responsibility to reduce our own impact on the natural
environment, we must also understand, and prepare for, the
climate- and nature-related risks and opportunities that could
affect our business, so that we are resilient enough to withstand
future challenges, while flexible enough to adapt to new
opportunities as they arise.
our supply chain. The assessment also considered the results of
AECOM’s 2019 water risk review at our major production facilities,
which we updated in 2023 to include risks within our supply chain
for corn and stevia. What we learnt from both these assessments
has helped us strengthen our ERM system, with better integration
of climate- and nature-related risks and opportunities, and closer
alignment of our disclosures with TCFD and TNFD.
We conducted the CCRA before we separated from Primient in
April 2022. Therefore, in 2023 AECOM helped us update the CCRA
to specifically consider the sites, countries and regions within
Tate & Lyle’s new operational footprint and supply chain. This
assessment included our more recently acquired businesses –
Chaodee Modified Starch in Thailand, and Quantum Hi-Tech and
Sweet Green Fields in China.
Our business and supply chain depend on natural resources
such as freshwater for our operations. We also have an impact on
nature, for example, through our GHG emissions and wastewater
discharge, and have a responsibility to help restore nature, such
as through our sustainable agriculture programmes which
support regenerative farming practices. In 2023, we carried out a
gap analysis and a LEAP (Locate, Evaluate, Assess and Prepare)
scoping exercise to better understand where we align with the
TNFD, and where we have more work to do. In the coming year,
we aim to build on this work and carry out an initial assessment of
nature-related issues aligned to the LEAP process. This will help
us disclose better against the TNFD in future.
Assessing climate- and nature-related risks and opportunities
The CCRA analysed physical and transition risks and
opportunities over three different timeframes. Transition risks
were considered over a shorter timeframe (to 2035 and beyond),
since changes in legislation, policy and technology related to the
transition to a low
-c
arbon economy are constantly evolving.
By
contrast, the physical impact of climate change and extreme
weather events is likely to be felt over much longer periods,
with projection data typically available up to the end of this
century. Therefore, physical risks were considered to 2039, 2059
and beyond.
For each risk and opportunity, we considered the likelihood
of it occurring, alongside the nature and magnitude of its
impact, to determine its overall potential impact and financial
implications, in line with our ERM system. We then assigned
each potential risk an overall risk rating. The tables on pages 75
to 77 set out the parameters of our analysis as well as the key
risks and opportunities most likely to affect us. In future, we
will define these better in terms of nature as well as climate.
Integrating TCFD across the Annual
Report
To avoid repetition, we have cross-referenced to relevant
information elsewhere, as follows:
• Governance – see Environment section, page 54
• Risk management – see Risk report, pages 63 to 72
• Strategy – see Environment section, pages 52 to 62 and
disclosures below
• Metrics and targets – see Environment section, pages 52
to 62.
We have summarised our compliance with the Task Force
on Climate-related Financial Disclosures (TCFD) in the table
on page 77 with cross-references for every disclosure.
We consider this statement to be consistent with the TCFD
Recommendations and Recommended Disclosures, and,
therefore, compliant with the requirements of Listing
Rule 9.8.6(8).
Taskforce on Nature-related Financial
Disclosures
The Taskforce on Nature-related Financial Disclosures
(TNFD) finalised its recommendations in September 2023. As
a result, this year we are starting to report more specifically on
nature as we move towards reporting in line with TNFD.
Strategic report Governance Financial statements Useful information
73
Tate & Lyle PLC Annual Report 2024
Water availability, for example, is a risk to our operations and
supply chain. We’re already experiencing the impacts of some of
these risks, so it’s important we mitigate them to make both our
operations and supply chain more resilient.
Building resilience across our operations and supply chain
Having analysed the overall findings of the CCRA, we looked at
two specific risks to assess their impact:
• Physical risk – drought in Europe affecting waxy corn: a risk
identified in the CCRA is more frequent and severe heatwaves
and drought affecting the regions where we source corn. That
risk became a reality in the summers of both 2022 and 2023
when drought in Europe, particularly northern France, reduced
the availability of the less widely grown waxy corn variant. As a
result, we analysed the impact on the availability and price of
waxy corn if Europe experienced a significant drought over a
consecutive three-year period that affected yields by 20%.
The analysis found that alternative supplies from other regions
would be needed to meet customer demand. As a result,
alternative sourcing regions have been identified.
• Transition risk – emissions trading schemes: we analysed the
financial impact on carbon pricing if the US and China were to
introduce emissions trading schemes equivalent to the existing
EU Emissions Trading System (EU ETS). We found that the total
cost for ETS schemes across Europe, China and the US would
be around US$13 million. Of this, US$7 million would be
additional cost, since we are already covered by the EU ETS.
This year, supported by the Board, we built on the CCRA by
carrying out a review of the impact of climate change on our
manufacturing, logistics and agricultural supply chains over the
past five years, the measures we had put in place to mitigate its
effects, and their effectiveness.
For example, in that period, the US has seen increasingly severe
winter weather, from the polar vortex of 2020 through to a
50-year low windchill in 2023. Both had operational impact for us
and, as a result, we have put in place winterisation plans for all our
plants located in areas that may be affected. Another example is
the severe drought that affected the Panama Canal last year,
which caused disruption to supply chains. In response, we have
adapted our logistics, localising our supply chain where possible,
and ensuring we have multiple suppliers for key ingredients and
transportation routes. Our review confirmed that we have good
mitigation plans for our plants to cope with extreme weather and
that there is no current need to relocate any capacity from
existing sites.
Nonetheless, with the rapid pace of change, what works today
may well not be sufficient for the coming years, and so our review
also looked ahead to the next five years and beyond, and
highlighted areas for improvement, such as the need for greater
flexibility in our raw material supply, for example more regional
corn sourcing and from areas that are less likely to experience
water scarcity.
We will continue to adapt our climate-related plans as needed
and to ensure nature-related risks are fully identified and
incorporated. Our aim remains to minimise the negative effects
and costs of climate- and nature-related risks, while maximising
our ability to serve our customers.
Climate- and nature-related events affecting our operations and supply chain over the last five years
Priorities and mitigating actions
• Protect people and assets: put plans in place to respond
to emergencies and to prepare for extreme weather events
• Build resilience: drive resilience through the supply chain
by increasing flexibility (for example, multiple sources of
supply for key ingredients, different transportation routes)
• Reduce exposure: limit exposure to areas and inputs
predicted to be highly affected by climate change (for
example, areas of water scarcity)
• Develop ecosystems: invest in technologies and/or
partnerships that help to predict climate-related risks,
and build mutually supportive ecosystems
• Decarbonise at scale: play our part in solving the climate
crisis by committing to a 1.5°C pathway of CO
2
e reduction
in our operations and supply chain.
Financial impact
• We estimate the total financial impact of climate-related
events (2020-2024) set out in the table opposite was
between US$25 million and US$30 million after mitigating
actions were taken into account.
2020 2021 2022 2023 2024
Agriculture
Downstream Upstream
Our facilitiesLogistics
North America
Polar
vortex
Hurricane
Sally
Flooding
Flooding Drought Irregular rainfall
Low river water levels
Record low
temperatures
Flooding Drought
Drought
50-year low
windchill
McIntosh,
Alabama, US
Europe
Central China France Asia
Koog, the Netherlands
Van Buren,
Arkansas, US
Boleráz, Slovakia Panama Canal
Boleráz,
Slovakia
Lafayette,
Indiana, US
Task Force on Climate-related Financial Disclosures continued
74
Strategic report
Tate & Lyle PLC Annual Report 2024
Task Force on Climate-related Financial Disclosures continued
Summary of risk Potential impact What we are doing
Production facilities
In the short term, our McIntosh facility in Alabama, US,
is expected to experience the greatest increase in
temperature. All facilities except Noto, Italy, would
experience more frequent and intense heavy rainfall.
These trends are expected to continue in the medium
and long term, affecting some other sites. All sites
would experience higher maximum and average
temperatures and more frequent, longer and severe
heatwaves.
Production could be disrupted and sites could face
asset damage, equipment failure and occupational
health risks.
This could lead to revenue loss, higher operating costs
for energy and water, repair and/or replacement costs,
reduced work capacity, increased insurance premiums,
and/or associated reputational damage.
We continue to monitor potential
physical risks to our facilities and
ensure we have adequate controls
in place to mitigate them. These
include plans to manage impacts of
extreme weather (hot and cold) and
capital investment to maintain and
replace key equipment.
Distribution network
More frequent and severe cold weather, flooding and
wildfires present the main risks, primarily to road, rail
and sea freight. Their frequency and severity are
expected to rise through the medium and long term,
with more frequent and severe storms, storm surges
and rising sea levels creating additional risk.
Our strategic distribution and logistics network could be
disrupted and we could see delays in our product
distribution. We have already experienced port closures
as a result of hurricanes, as well as winter rainfall and
flooding across our road transportation network.
These risks could reduce profitability as we may not be
able to pass on additional shipment re-routing or
product replacement costs to customers.
We continuously review logistics
and shipment risks associated with
climate-related events, including
alternative shipping routes, multiple
suppliers and inventory
management.
Corn and stevia supply
In the short term, changes in total annual rainfall,
increased seasonal variability of rainfall, and more
severe droughts could occur.
The US Midwest corn-growing region could see more
frequent and severe tornadoes, and higher rainfall in
spring and lower in summer. In Europe, extreme rainfall
and frequent flooding are the key risks.
These trends are expected to continue into the
medium and long term, alongside higher temperatures,
and are also expected to affect other regions as well.
Supply uncertainty and declining yields could increase
operating costs and we could face greater price
volatility.
This could reduce our profits and damage our
reputation.
We are reducing our dependence
on corn-based products by
diversifying our raw materials,
acquiring businesses that use
tapioca, stevia, chickpea and sugar
cane.
We are also sourcing corn and
stevia from more regions to mitigate
the impact on their availability in
regions affected by flooding,
drought or disease.
Risks analysed under CCRA
Increase in extreme weather events, such as higher maximum
and average temperatures, drought, wildfire, flooding and tropical
storms. These events could affect all aspects of our business,
causing operational disruption, asset damage, and increased raw
material and utility costs.
Timeframes
• Short term – 2020-2039
• Medium term – 2040-2059
• Long term – beyond 2060
Tate & Lyle sites: 14 production sites across Brazil, China,
Thailand, Italy, Slovakia, the Netherlands and the US
Supply regions: ten corn-growing regions in the US, France and
Slovakia
Transportation: transport, distribution and logistics (upstream
and downstream)
Emissions concentration pathway: high emissions scenario –
+4°C, RCP 8.5 pathway
1
Summary of our key climate-related risks
Physical risk
1 RCP 8.5 is the ‘high-emissions’ business-as-usual scenario, with no policy changes to
reduce emissions and with increasing high atmospheric GHG concentrations.
Strategic report Governance Financial statements Useful information
75
Tate & Lyle PLC Annual Report 2024
Task Force on Climate-related Financial Disclosures continued
1 RCP 2.6 is an aggressive mitigation scenario where GHG emissions are halved by 2050.
Summary of risk Potential impact What we are doing
Group
Increasing expectations from customers and
stakeholders on our commitments to reduce carbon
emissions.
Not meeting our commitments could damage our
reputation with our stakeholders. It could also affect
demand as customers looking to meet their own
sustainability goals choose to work with other suppliers.
We have had science-based
targets for GHG emissions
reduction since 2020. In May 2024,
we announced ambitious new
science-based targets, aligned to a
1.5°C pathway.
Production facilities
In the short to medium term, predicted changes in
regulation, policy and technology are likely to affect us
financially. We expect the following to be most
relevant: national climate commitments in countries
where we have major production facilities, and
decreasing caps on carbon allowances.
New and emerging carbon tax legislation and pricing
mechanisms and a global move to lower-carbon
transport could lead to an increase in the cost of raw
materials and energy at our sites.
An increase in costs due to the need to adapt products
and materials to lower-carbon alternatives, for example
additional research and development costs. This may
also lead to additional processing, which could
indirectly trigger higher carbon emissions and costs
associated with minimising those emissions at our
facilities.
Utility and supply costs are likely to continue rising in
the long term, for example due to a lack of lower-carbon
alternatives and continued market expectations for
low-carbon production. This could affect site
competitiveness.
As part of our sustainability
commitments, we continue to work
towards lower-carbon production,
introducing renewable electricity
and cleaner energy options where
available.
We factor the impact of GHG
emissions and water use into our
engineering feasibility studies for
capital projects and continue to
respond proactively to emerging
regulation.
We look for ways to improve our
overall operational efficiency and
reduce our exposure to variable
fossil fuel prices and carbon taxes.
Distribution network
Increased costs due to the global switch to
lower-carbon transport.
Our transport costs could increase as our
sub-contracted hauliers switch from diesel to
lower-carbon vehicles to meet their own
environmental goals.
Our logistics team ensures we have
sufficient flexibility in our
distribution network to use different
suppliers, where needed, to meet
our economic and environmental
goals.
Risks analysed under CCRA
Increasing expectations from society, changes in regulation,
policy and technology and rising costs associated with the
transition to a lower-carbon economy could all have an impact on
our business.
Timeframes
• Short term – 2020-2025
• Medium term – 2026-2035
• Long term – beyond 2035
Tate & Lyle sites: 14 production sites across Brazil, China,
Thailand, Italy, Slovakia, the Netherlands and the US
Transportation: transport, distribution and logistics (upstream
and downstream)
Procurement and commercial: global policy trends with potential
effect on Tate & Lyle’s key geographies and markets
Emissions concentration pathway: aggressive mitigation
scenario – 2°C, RCP 2.6 pathway
1
Summary of our key climate-related risks continued
Transition risk
76
Strategic report
Tate & Lyle PLC Annual Report 2024
Transition opportunities
Opportunity Description How we’re responding
Increased market demand for low-carbon, plant-based
products in the food industry
In the short to medium term this could open up access to new markets and
customers.
All the New Products in our innovation pipeline are assessed for their
sustainability impact. In 2024, we will launch CLARIA G
®
, our first new
product specifically marketed on its sustainability credentials.
More efficient production processes and renewable
energy sources
By embracing new technology and adopting new processes or sources of
energy, we could increase our efficiency and significantly reduce the carbon
footprint of our business and products.
We are significantly increasing the use of renewable energy at many of our
plants. In 2023, our production facility in Guarani, Brazil, became our first
site to be 100% powered by renewable energy, and our facilities in the
Netherlands, UK and Italy are buying 100% of their electricity from
renewable sources.
Lower-carbon transport options
This is both a risk and an opportunity for Tate & Lyle, since costs could
fall in the medium to long term as more businesses adopt low- and
zero-emissions transport options. This could improve our efficiency
and reduce our costs.
We continue to work with our logistics suppliers to find more carbon-
efficient ways to transport our raw materials and finished products, such
as using electrified modes of transport.
Summary of our key climate-related opportunities
TCFD table of concordance
The table below cross-refers to where the relevant disclosures in this Annual Report have been made against the 11 principles of the TCFD.
TCFD Principles Page(s)
1. Governance
1.1 Describe the Board’s oversight of climate-related risks and opportunities 54
1.2 Describe management’s role in assessing and managing climate-related risks and opportunities 54
2. Strategy
2.1 Describe the climate-related risk and opportunities the organisation has identified over the short, medium and long term 73-77
2.2 Describe the impact of climate-related risk and opportunities on the organisation’s businesses, strategy and financial planning 73-77
2.3 Describe the resilience of the organisation’s strategy, taking into consideration different climate-related scenarios, including a 2ºC or lower scenario 73-77
3. Risk management
3.1 Describe the organisation’s processes for identifying and assessing climate-related risks 65, 73-77
3.2 Describe the organisation’s processes for managing climate-related risks 65, 73-77
3.3 Describe how the processes for identifying, assessing and managing climate-related risks are integrated into the organisation’s overall risk management 65, 73-77
4. Metrics and targets
4.1 Disclose the metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and management process 53, 55-62
4.2 Disclose Scope 1, Scope 2 and if appropriate Scope 3 GHG emissions and related risks 55-62, 73-77
4.3 Describe the targets used by the organisation to manage climate-related risks and opportunities, and performance against targets 53, 55-62
Task Force on Climate-related Financial Disclosures continued
Strategic report Governance Financial statements Useful information
77
Tate & Lyle PLC Annual Report 2024
Reporting requirements Relevant policies Where to read about our impact Pages
Environmental matters Global EHS Policy
1
Environment and sustainability
Task Force on Climate-related Financial
Disclosures
52 to 62
73 to 79
Employees Code of Ethics
1
Global EHS Policy
1
Global HR Policy
2
Equal Parental Leave Policy
2
Domestic Abuse Support Policy
2
Our people
Gender pay gap reporting
Health and safety
Ethics and whistleblowing
44 to 49
47
41 to 43
93
Human rights Code of Ethics
1
Anti-Slavery Statement
1
Data Protection
2
Our people
Supplier audit programme
Risk report
49
63
63 to 72
Social matters Code of Ethics
1
Board Policy on equity, diversity and inclusion
1
Our people
Community involvement
Equity, diversity and inclusion matters
49
48, 93, 96 and 101
Throughout this Report
Anti-bribery and
corruption
Code of Ethics
1
Anti-money laundering and Anti-bribery Standard
2
Agents and Distributors
2
Group Compewtition (Anti-trust)
2
Trade Compliance
2
Gifts and Hospitality Standard
2
Our people
Supplier audit programme
Risk report
44 to 49
63
63 to 72
Business model Our business model 26 to 27
Non-financial KPIs Our purpose commitments and targets
Gender diversity
Health and safety
Environment and sustainability
28 to 31
45
41 to 43
52 to 62
Principal risks Risk report 63 to 72
1 Available on our website www.tateandlyle.com and available to employees through the Tate & Lyle intranet.
2 Available to all employees through the Tate & Lyle intranet. Not published externally.
Non-financial and sustainability information
statement
The table opposite sets out where you can find the information
as required under the non-financial reporting requirements
contained in sections 414CA and 414CB of the Companies
Act 2006.
Section 172(1) statement and stakeholder
engagement
See pages 95 and 96 within Governance for our ‘Section 172(1)
statement’. This describes how the Directors have had regard to
stakeholders’ interests when discharging the Directors’ duties set
out in section 172 of the Companies Act 2006. Our engagement
activities with stakeholders and the impact of those interactions
are set out from page 90.
The Board approved the Strategic Report on pages 8 to 78 of this
Annual Report on 22 May 2024.
By order of the Board
Claire-Marie O’Grady
Company Secretary
Disclosure statements
78
Strategic report
Tate & Lyle PLC Annual Report 2024
Governance
In this section
80 Board of Directors
83 Executive Committee
84 Corporate governance
100 Nominations Committee Report
102 Audit Committee Report
108 Directors’ Remuneration Report
127 Directors’ Report
129 Directors’ statement of
responsibilities
79
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Board of Directors
Board Committees
Certain responsibilities are delegated to three Board Committees, details of which are provided on pages 100, 102 and 108.
A
Audit Committee
R
Remuneration Committee
N
Nominations Committee
David Hearn
Chair and Chair of the Nominations Committee
N
Date appointed to Board: January 2024
Independent: Yes
Aged: 68
Nationality: British
Skills and expertise:
David brings more than 40 years of knowledge and
deep leadership experience within food and beverage
companies. David has held senior roles at a number of
global businesses including Del Monte, PepsiCo and
United Biscuits.
Current external commitments:
Chair of Safestore plc
Previous roles:
Until November 2023, served as Chair of The a2 Milk
Company, a company listed on the Australian and New
Zealand Stock Exchanges. Served as CEO of Goodman
Fielder, an Australian food business, from 1995 to 2001,
and was CEO of Cordiant Group PLC in the US from 2001
to 2003. In 2005, he was appointed CEO of Committed
Capital, an international private equity and advisory firm
based in London and Sydney, for whom he acted as
chair of a wide range of portfolio businesses over a
12-year period.
Nick Hampton
Chief Executive
Date appointed to Board: September 2014
Date appointed Chief Executive: April 2018
Independent: No
Aged: 57
Nationality: British
Skills and expertise:
Nick brings a wealth of food industry insights to the Board.
His general management, financial and operational
experience in senior management roles in a major
multinational food and beverage business, combined
with his experience in leading transformational projects,
provides him with the skillset required to inspire and lead
the Group.
Current external commitments:
Senior Independent Director at Great Portland Estates plc
Previous roles:
Prior to being appointed Chief Executive, he served as
Chief Financial Officer of Tate & Lyle. Before joining
Tate & Lyle, he held a number of senior roles over a
20-year career at PepsiCo, including Senior Vice
President and Chief Financial Officer, Europe, and
President, West Europe Region and Senior Vice President
Commercial, Europe.
Dawn Allen
Chief Financial Officer
Date appointed to Board: May 2022
Date appointed Chief Financial Officer: May 2022
Independent: No
Aged: 55
Nationality: British
Skills and expertise:
Dawn brings more than two decades of experience in
the global food industry and has a proven track record
of financial leadership. Her financial, commercial and
international experience is of great value to the Board.
Dawn is a member of the Institute of Chartered
Accountants of England and Wales.
Current external commitments:
Non-executive director at ITV plc
Previous roles:
Global CFO & VP, Global Transformation at Mars
Incorporated from 2020 until joining Tate & Lyle. During
a 25-year career at Mars, she held a number of senior
financial roles in Europe and the US including Global
Divisional CFO, Food, Drinks and Multisales, and Regional
CFO Wrigley Americas.
Kimberly (Kim) Nelson
Senior Independent Director
A
N
Date appointed to Board: July 2019
Independent: Yes
Aged: 61
Nationality: American
Skills and expertise:
Kim brings substantial experience in the food and
beverage industry and specific insights into the US
market, having worked for General Mills Inc. for nearly
30 years. During her career at General Mills, she held a
number of senior brand and general management roles,
including serving as President of the Snacks operating
division. She served as Senior Vice President, External
Relations, leading on issues and crisis management,
environmental, social, governance and global external
stakeholder relations.
Current external commitments:
Non-executive director of Colgate-Palmolive Company
Non-executive director of Cummins, Inc.
Previous roles:
President of the Snacks operating division at General Mills
Inc. and Senior Vice President, External Relations, from
2010 until retirement in 2018.
80
Governance
Tate & Lyle PLC Annual Report 2024
John Cheung
Non-Executive Director
A
N
Date appointed to Board: January 2021
Independent: Yes
Aged: 59
Nationality: Chinese (The People’s Republic of China
(Hong Kong SAR))
Skills and expertise:
John brings a breadth of food and beverage experience
with a deep understanding of markets in Asia, particularly
in China. His experience in senior positions in Asia in
multiple companies and as a CEO enables him to provide
valuable insights into the region.
Current external commitments:
Chief Executive Officer at Zhejiang Supor Co., Limited
Non-executive director at China Feihe Limited
Previous roles:
President of Wyeth Nutrition Global, Chairman and CEO
of Nestlé Greater China, VP China at Coca-Cola.
Board of Directors continued
Board Committees
Certain responsibilities are delegated to three Board Committees, details of which are provided on pages 100, 102 and 108.
A
Audit Committee
R
Remuneration Committee
N
Nominations Committee
Lars Frederiksen
Non-Executive Director
R
N
Date appointed to Board: April 2016
Independent: Yes
Aged: 65
Nationality: Danish
Skills and expertise:
As the former CEO of a global speciality food ingredients
business, Lars led a successful business transformation
and his insights are invaluable to the Board as Tate & Lyle
continues to evolve. He also brings operational expertise
and an understanding of how to attract and retain talent in
a global business.
Current external commitments:
Chairman of Matas A/S
Non-executive director of Falck A/S
Chairman of the Hedorf Foundation
Chairman of PAI Partners SA
Previous roles:
CEO of Chr. Hansen Holding A/S from 2005 until
retirement in March 2013, leading a successful listing on
the Copenhagen stock exchange during that period. Prior
to becoming CEO, he held various management positions
at Chr. Hansen.
Patrícia Corsi
Non-Executive Director
R
N
Date appointed to Board: May 2021
Independent: Yes
Aged: 51
Nationality: Brazilian
Skills and expertise:
Patrícia brings brand marketing and digital expertise and
significant experience and understanding of the Latin
American market. She has nearly 30 years of experience
in global consumer products throughout the region.
Current external commitments:
Global Chief Marketing, Digital, and IT Officer at Bayer
Consumer Health. From 1 July 2024, Patrícia will be the
Global Chief Growth Officer at Kimberly-Clark Corp.
Previous roles:
SVP and Chief Marketing Officer, Mexico for Heineken NV
and held various global brand roles for Unilever as well
as marketing roles for Kraft Foods and Tetra Pak
International in Brazil.
Dr Isabelle Esser
Non-Executive Director
R
N
Date appointed to Board: June 2022
Independent: Yes
Aged: 60
Nationality: Belgian
Skills and expertise:
Isabelle brings over 30 years’ experience in global
consumer food and ingredient companies, with a
particular focus on research and development. Her
scientific expertise and extensive technology leadership
experience in Tate & Lyle’s markets are of significant
benefit to the Board.
Current external commitments:
Chief Research, Innovation, Quality and Food Safety
Officer at Danone SA
Previous roles:
EVP, R&D Foods Transformation, Global Foods and
Refreshment at Unilever PLC and Chief Human Resources
Officer at Barry Callebaut AG.
81
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Board of Directors continued
Warren Tucker
Non-Executive Director and Chair of the
Audit Committee
A
R
N
Date appointed to Board: November 2018
Independent: Yes
Aged: 61
Nationality: British
Skills and expertise:
Warren is a chartered accountant and has extensive
experience as a former Chief Financial Officer of a large
global manufacturing group, where he also co-led the
company’s organic and strategic growth. His experience
in large multinational and business-to-business
organisations across several geographies and industries
enables him to provide valuable insights to the Board. He
also brings an understanding of the London investment
community and shareholder institutions.
Current external commitments:
Chair at TT Electronics Plc
Audit Committee Chair at Modulaire Group
Previous roles:
CFO of Cobham plc for ten years until 2013. Most recently
non-executive director of Reckitt Benckiser Group plc
until 2020, and chair of the Audit Committee at Survitec
Topco Ltd. He also held senior finance roles at Cable &
Wireless and British Airways, and was a non-executive
director and chair of the Remuneration Committee at
Thomas Cook Group plc, and a non-executive director
at PayPoint plc.
Sybella Stanley
Non-Executive Director and Chair of the
Remuneration Committee
A
R
N
Date appointed to Board: April 2016
Independent: Yes
Aged: 62
Nationality: British
Skills and expertise:
Sybella has extensive commercial and financial
experience and brings a wealth of knowledge about
the London investment community and substantial
experience of communicating with this and other
investment communities outside the UK. Her long career
in corporate finance and M&A is invaluable to the Board’s
consideration of strategic opportunities.
Current external commitments:
Director of Corporate Finance at RELX plc
Non-executive director of The Merchants Trust PLC
Co-chair of the Somerville College Oxford
Development Board
Previous roles:
Originally qualified as a barrister and, before joining RELX
in 1997, she was a member of the M&A advisory team at
Citigroup and later Barings.
Jeffrey (Jeff) Carr
Non-Executive Director
A
N
Date appointed to Board: April 2024
Independent: Yes
Aged: 62
Nationality: British
Skills and expertise:
Jeff is a chartered management accountant and has
over 30 years’ experience in international financial roles,
across a range of consumer and retail companies. Jeff
brings an understanding of the investment community
and shareholder institutions, and in his previous role as
CFO at Reckitt Benckiser Group plc, he was a key player
in delivering strategic and cultural change.
Current external commitments:
Chair of the Audit Committee and non-executive director
of Kingfisher plc
Previous roles:
CFO of Reckitt Benckiser Group plc (2020-2024), CFO for
European retailer Ahold Delhaize (2011-2020).
Board composition
As at 22 May 2024
Gender diversity of directors
6
5
Men
Women
Directors’ nationalities
6
1
1
1
1
1
British
American
Danish
Chinese
Brazilian
Belgian
Tenure of non-executive directors
3
4
2
Less than 3
years
3 to 6 years
Over 6 years
Board Committees
Certain responsibilities are delegated to three Board Committees, details of which are provided on pages 100, 102 and 108.
A
Audit Committee
R
Remuneration Committee
N
Nominations Committee
Directors whose tenure ceased during the 2024
financial year
• Dr Gerry Murphy stepped down as Chair on
31 August 2023.
• Paul Forman stepped down as Senior Independent
Director on 31 December 2023.
Joined the Board on 1 April 2024
82
Governance
Tate & Lyle PLC Annual Report 2024
Our Executive Committee
Nationalities of the
Executive Committee
As at 22 May 2024
British
American
Argentinian
5
3
1
Victoria Spadaro Grant
President, Innovation and
Commercial Development
Nationality: Argentinian/American
Victoria joined Tate & Lyle in November 2020,
from the Italian multinational food company
Barilla, where she was the Chief Global
Research Development and Quality Officer.
Victoria has strong R&D, commercial and
customer-facing expertise having previously
held positions at Mars, Kraft Heinz and
PepsiCo. Victoria has worked and lived in
many countries including Asia, US, Italy and
her native Argentina. Her extensive
experience driving innovation in the global
food and beverage marketplace is key to
delivering our growth strategy.
Lindsay Beardsell
Executive Vice President,
General Counsel
Nationality: British
Lindsay joined Tate & Lyle in September 2018
from GVC Holdings PLC where she was
Group General Counsel. She studied local
and European law in the UK, France and
Germany, giving her a broad understanding
of different legal environments. Lindsay
brings a wide knowledge of corporate law
and practical legal experience from her early
career at Freshfields Bruckhaus Deringer, as
well as from her years working in FTSE
companies across a diverse range of sectors.
Lindsay currently serves as a non-executive
director of 4Imprint Group plc.
Melissa Law
President, Global Operations
Nationality: American
A chemist by training, Melissa joined
Tate & Lyle in 2017 after 20 years in the oil
industry. Before joining us, she was President
of the Global Specialities Division of Baker
Hughes, a GE company. Prior to that, she held
senior executive management positions in
Australasia and the Gulf of Mexico in areas
such as commercial management, supply
chain and research and technology. Her
commitment to making our operations safe
and productive places to work is making a real
difference across Tate & Lyle. Melissa currently
serves as a non-executive director for Cactus
Inc., a US-based oilfield service provider.
Tamsin Vine
Chief Human Resources Officer
Nationality: British
Tamsin joined Tate & Lyle in November
2021 as Vice President of Human
Resources, Corporate Functions and VP of
Organisational Development and Talent. In
December 2022, she was appointed Chief
Human Resources Officer. Before joining
Tate & Lyle, Tamsin spent 12 years in global
roles covering all dimensions of people
development at Sodexo, based in Paris. She
has also held senior positions at WorldPay as
Director of Talent Development and at
Vodafone as Senior HR Business Partner.
Andrew Taylor
President, Asia, Middle East, Africa
and Latin America
Nationality: American
Andrew joined Tate & Lyle in 2017 as
President, Innovation and Commercial
Development, having spent 20 years at
management consultancy firm Boston
Consulting Group (BCG), where he was a
Senior Partner and Managing Director, and
led BCG’s Global Innovation Practice. He took
on his current role in October 2020. Andrew’s
broad international experience and deep
understanding of the food industry are key to
delivering our strategy in many of the world’s
higher growth markets.
William (Bill) Magee
President, North America
Nationality: American
Bill joined Tate & Lyle in 2018 as Commercial
Vice President for Food & Beverage Solutions,
North America. Later that year, he was
appointed Senior Vice President and General
Manager for Food & Beverage Solutions,
North America before becoming President,
North America and joining the Executive
Committee in October 2021. Previously Bill
held senior leadership roles in speciality
materials firms including Rohm & Haas, Dow,
and H.B. Fuller. Bill’s experience and customer
focus has been instrumental in driving North
America’s growth strategy.
Rowan Adams
Executive Vice President, Corporate Affairs
Nationality: British
Rowan is the longest serving employee on our
Executive Committee. He joined Tate & Lyle in
2001 and has since held a number of senior
roles including leading our global strategy
team. He became EVP, Corporate Affairs, and
joined the Executive Committee in November
2014. His current responsibilities include
leading our global sustainability programme.
He has deep knowledge and understanding
of the Company and our industry. Rowan
currently serves as a Trustee of The Royal
Engineers Association.
Nick Hampton
Chief Executive
Nationality: British
Nick became Chief Executive of Tate & Lyle
in April 2018, having joined as Chief Financial
Officer in September 2014. He brings a wealth
of food industry insights from his 20-year
career at PepsiCo. He has general
management, financial and operational
experience through senior management
roles, as well as experience in leading
transformational projects. This provides him
with the skills and attributes to inspire and
lead the Tate & Lyle team. Nick currently
serves as Senior Independent Director of
Great Portland Estates plc.
Dawn Allen
Chief Financial Officer
Nationality: British
Dawn joined Tate & Lyle in May 2022 as Chief
Financial Officer from Mars Incorporated
where she was Global CFO & VP, Global
Transformation since 2020. Prior to that,
during a 25-year career at Mars, she held a
number of senior finance roles in Europe
and the US. Her financial experience and
knowledge of the global food and beverage
industry is of great benefit to Tate & Lyle.
Dawn currently serves as a non-executive
director of ITV plc.
83
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Good governance is embedded throughout
the business, it is not something that the
Board does separately.
Corporate
Governance:
Chair’s introduction
Introduction
As shareholders will recall, in August 2023 my predecessor
Dr Gerry Murphy stepped down from the Board to become
Chair of Tesco plc. I know the Board was grateful to Gerry for his
inspiring leadership since 2017, and to Warren Tucker for stepping
in as the Interim Chair until I joined in January 2024. Paul Forman,
our former Senior Independent Director, led the search process
with the Nominations Committee to appoint a successor to Gerry,
staying on the Board beyond his anticipated retirement date to do
so. The Board is grateful to Paul for his leadership of this process
and to Kim Nelson for taking on the role of Senior Independent
Director in January this year.
During the Chair selection process it became clear to me that
Tate & Lyle is a company with a strong governance framework
and a culture of respect for the value of good corporate
governance. Since joining the Board, this impression has been
confirmed. I have enjoyed a thorough induction process, meeting
key senior leaders and external advisors and, in April 2024,
I also had the opportunity to visit our plants in Sagamore, Indiana,
and Sycamore, Illinois, in the US and our Customer Innovation
and Collaboration Centre at Hoffman Estates, Illinois, with Nick.
In May 2024, I was able to visit our corn wet mill in Boleráz,
Slovakia, and see the newly-installed fibre capacity there.
In June 2024, I plan to visit our plants and offices in China.
I have also taken time recently to meet with several of our largest
institutional investors to share with them my enthusiasm for the
future of Tate & Lyle and to hear their thoughts and priorities for
the business which they own.
I very much look forward to visiting more Tate & Lyle sites, and
to meeting more Tate & Lyle colleagues, shareholders and
stakeholders over the coming year.
Our priorities during the year
During the year, the Board discussed and reconfirmed our
ambition to be a company at the centre of the future of food and
discussed the key initiatives which the management team are
leading to realise that goal.
This included consideration of the development of a science
(technical) roadmap to be the best-in-class solutions provider
across sweetening, mouthfeel and fortification. It also
encompassed a review of the capabilities we are developing to
be our customers’ partner of choice in solution selling, and the
development of a digital strategy and roadmap. On sustainability,
we considered the requirements and challenges associated with
developing a science-based pathway to meeting our emissions
targets, and to achieve net zero by 2050. Over the course of the
year, the Board had the opportunity to receive updates on all
these programmes and initiatives.
At our annual Board Strategy session in December 2023,
which I was delighted to be able to attend as an observer, we
reviewed progress against the five-year plan to 2028 and the key
priorities for the business as we strive to deliver our ambition to
be at the centre of the future of food.
In addition to these priorities, we also considered the usual
subjects on the Board’s calendar: financial performance; risk
management; environmental, health and safety matters
among others.
Attending to our relationships with stakeholders
Although the Board is not able to engage directly with all our
stakeholders, we always try to consider every perspective in our
discussions. Some of the Board’s highlights this year include:
Our people
I know how much my fellow directors enjoy visiting our sites and
meeting our people. However, because of the timing of the new
Chair search, we did not conduct an overseas visit in the year
as a Board, but we intend to visit our Customer Innovation
and Collaboration Centre in Hoffman Estates, Illinois, US, in
September 2024. However, fortunately, during the year, several of
our non-executive directors were able to make individual visits to
our sites. The feedback they give to the Board after these visits is
extremely valuable. In particular, Lars Frederiksen visited our corn
wet mill in Boleráz, Slovakia, in June 2023; John Cheung visited
our stevia facility in Anji, China, in October 2023, and Warren
Tucker visited our Customer Innovation and Collaboration Centre
David Hearn
Chair
84
Governance
Tate & Lyle PLC Annual Report 2024
Chair’s introduction continued
in Singapore before going on to visit our dietary fibre facility,
Quantum, in Guangdong, China in January 2024. As I mentioned
in my introduction, I have also enjoyed a number of site visits.
I’m always energised by meeting the people and teams at the
front-line of the business, whether that is colleagues managing
customer relationships, operators in our plants, or scientists in our
labs and I look forward to conducting more of these visits in the
coming year.
Customers
At Tate & Lyle, we talk about being customer obsessed. The
Board also takes a close interest in our customers. It receives
regular updates on conversations Nick and his senior leadership
team have had with customers and on the feedback they’ve
received. Over the past two years our customers and, therefore,
we have had to manage rapid inflation and more recently
significant deflation. Being close to our customers and
understanding their challenges is critical to enabling us to
manage our business. We have also learnt about the innovative
ways our teams are working with our customers through a
multi-year programme designed to change the way we work
with customers and become their solutions and innovation
partner of choice.
Primient
Our relationship with Primient, our joint venture with KPS Capital
Partners and an important supplier to Tate & Lyle, continued to
operate well during the year. Tate & Lyle and Primient work
together through long-term supply agreements which benefit
both businesses. As Tate & Lyle is a shareholder and major
customer, the Board took a keen interest in the success of
Primient and was pleased to see its performance improving
during the course of the year.
Shareholders
Board members enjoyed the opportunity to meet with
shareholders at our AGM in July 2023 and I look forward to
meeting shareholders at our AGM in July 2024.
A culture driven by our purpose
As I get to know Tate & Lyle, particularly through the visits I have
made to our sites, I can see that our purpose of Transforming
Lives through the Science of Food truly inspires our people and
it was one of the factors which attracted me to Tate & Lyle. Our
corporate commitment to ‘Science, Solutions, Society’ is at the
heart of what we do as a business and, consequently, in the
conversations that we have in the boardroom.
The safety of our people and products is always a focus for
the Board. We receive updates from Nick on health and safety
performance at every Board meeting and we had an in-depth
session during the year on the continuing progress of our
Journey to Environment, Health, Safety, Quality and Security
Excellence (J2E) programme. This programme is now six years
old and while there is more work to do, it is clear that we continue
to improve the way we manage the risks associated with health
and safety. We also held a detailed session on our sustainability
strategy and programme, and our plans to reduce our carbon
footprint further. These initiatives are not only important to
Tate & Lyle but also to our customers and that is why the Board
was particularly pleased that Tate & Lyle was recognised by the
CDP with an A rating for supplier engagement on climate change.
In addition to our direct engagement with colleagues in the
business, the Board also receives updates from Nick and
Tamsin Vine, our Chief Human Resources Officer, on the results
of employee engagement surveys and our progress on our
equity, diversity and inclusion agenda.
Our ethics and compliance programme is fundamental to
ensuring that we operate to the high standards we expect in all
aspects of Tate & Lyle’s business globally. Each year, the Board
reviews a report from our Head of Ethics and Compliance on the
progress of our programme, and the number and nature of
reports to our whistleblowing hotline. The Audit Committee also
receives updates from the Head of Ethics and Compliance twice
a year. This year, we had a slightly higher number of reports which
were substantiated than in the prior year, and on a wider variety of
subjects. The majority of our reports came from North America
and Asia, followed by the Middle East. Encouragingly, the number
of Asia reports suggest good integration of our compliance
policies and procedures in more recent acquisitions, which the
Board found to be reassuring.
Our effectiveness as a Board
This year, our Board effectiveness review was internally
facilitated using a questionnaire-based approach as in previous
years. The Board, as well as members of our executive team and
members of management (who are regular attendees at our
meetings), together with external advisors Deloitte (for the
Remuneration Committee) and our external auditor EY (for the
Audit Committee) completed the questionnaires. I also held
individual meetings with each of the directors.
The review concluded that the Board and its Committees are
operating well, and identified areas for continued focus for the
year ahead. These priorities are described on page 89.
Our focus for the 2025 financial year
Over the past two years, we have seen challenging market and
geopolitical conditions which the team at Tate & Lyle has
navigated well. At the time of writing, these continue to persist.
Therefore, during this year, the Board will continue to support Nick
and his team on the delivery of the Group’s growth-focused
strategy and its five-year financial ambition to March 2028. In
doing so, we will maintain our focus on people and culture,
succession and talent development, and sustainability.
David Hearn
Chair
David Hearn, Board Chair, on a tour of our manufacturing plant in
Sagamore, Indiana, US, with Jacob Crum, Operations Manager
David Hearn, Board Chair, tasting products in our lab in Sycamore,
Illinois, US
85
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Our Governance
Structure
Leadership
Our governance structure
Our primary decision-making body is the Board. It is
accountable to shareholders for the Group’s financial and
operational performance, and is responsible for setting
the strategy and ensuring that risk is managed effectively.
The Board maintains a schedule of items which it is
required to consider and approve. We review this
schedule regularly and update it to reflect developments
in corporate governance and emerging practice.
As shown in the diagram below, the Board has delegated
certain responsibilities to a number of Committees. The
Board retains overall accountability and the Committee
Chairs are responsible for reporting back to the Board on
the Committees’ activities. Minutes of and papers for the
Committees’ meetings are made available to all the
directors on the web-based portal.
The Board – Chair: David Hearn
• Accountable to shareholders for the Group’s financial and
operational performance
• Sets the Group’s strategy
• Oversees management’s implementation of the strategy
• Monitors the operational, environmental and financial
performance of the Group
• Sets the Group’s risk appetite
• Ensures that appropriate risk management systems and
internal controls are in place
• Sets the Group’s ethics and culture and agrees the Group’s
purpose and values
• Ensures good corporate governance practices are in place
Chief Executive
Nick Hampton
Executive Committee
• Recommends strategic and operating plans to the Board
• Assists the Chief Executive in implementing the strategy
agreed by the Board
• Monitors the performance of the reporting segments and
global support functions
• Monitors performance against our purpose commitments
• Identifies, evaluates, manages and monitors risks to the Group
• Manages the relationship with Primient
The Executive Committee is supported by a number of operational committees, including the Environment, Health and Safety (EHS) Advisory Board, the Operations Committee, the Risk Committee,
the Sustainability Committee and the Capital Approval Committee. Committees may also be established for a finite period to oversee key strategic or operational priorities.
Audit Committee
Chair: Warren Tucker
•
Oversees financial reporting, internal
financial controls and risk management
systems, the risk management process, the
internal audit function and the Group’s
relationship with the external auditor
Read more on page 102
Nominations Committee
Chair: David Hearn
•
Makes recommendations to the Board
regarding the structure, size, composition
and succession needs of the Board and its
Committees
• Reviews the performance of the Executive
Directors
• Oversees succession planning for Directors
and senior management
Read more on page 100
Remuneration Committee
Chair: Sybella Stanley
•
Recommends the Group’s Remuneration
Policy for Executive Directors
• Sets and monitors the level and structure of
remuneration for the Executive Directors and
other senior executives
• Sets the Board Chair’s fee
Read more on page 108
86
Governance
Tate & Lyle PLC Annual Report 2024
Our Governance Structure continued
Key responsibilities of the Board
At the date of this Annual Report, the Board comprises the Chair, two executive directors and eight non-executive directors. Their responsibilities are summarised below. There is a clear division of
responsibilities: the Chair leads the Board and the Chief Executive leads the business.
Chair Chief Executive
Responsible for the effective operation, leadership and governance of the Board
• Chairs Board meetings, Nominations Committee meetings and the Annual General Meeting
• Sets the Board agenda with the Chief Executive and Company Secretary
• Facilitates active engagement by all directors
• Sets the style and tone of Board discussions
• Ensures the Directors receive accurate, timely and clear information
Responsible for proposing strategy to the Board and delivering it
• Runs the business
• Communicates within the organisation the Board’s expectation with regard to culture, values
and behaviours
• Ensures the Board is aware of current business issues
Chief Financial Officer Non-executive directors
Responsible for the Group’s financial affairs
• Contributes to the management of the Group’s business
• Supports the Chief Executive with the development and implementation of the strategy
Responsible for overseeing the delivery of the strategy within the risk appetite set
by the Board
• Advise and constructively challenge the executive directors
• Scrutinise the performance of management in meeting agreed goals and objectives and
monitor the reporting of performance
• Perform their duties diligently and use best endeavours to promote, protect, develop and
extend the business of the Group
• Devote time to develop and refresh knowledge and skills
Senior Independent Director Company Secretary
Responsible for ensuring that the Chair’s performance is evaluated
• Acts as a sounding board for the Chair and supports him in the delivery of his objectives
• Serves as an intermediary with the Chair for other directors if necessary
• Maintains a comprehensive understanding of the major views of shareholders and is available
if shareholders have any concerns that they have been unable to resolve through the normal
channels
Responsible for maintaining the governance and listing rules compliance framework
• Supports the Chair, Chief Executive and Committee Chairs in setting agenda items for Board
and Committee meetings
• Advises the Board on developments in corporate governance, legislation and regulation
• Assists the Chair and the Chief Executive in ensuring that the Directors are provided with
relevant information in a timely manner
• Organises inductions for new directors and ongoing training for all directors
87
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Board activity during
the year ended 31 March 2024
The Board holds six scheduled meetings each year and a meeting to discuss strategy. An additional meeting was also held during the year.
This year’s meetings were mainly held in person with one or two directors who were not able to travel occasionally attending via video conference.
The Board continues to hold some meetings via video conference.
Strategy
• Reviewed progress on Tate & Lyle’s transformation journey
• Reviewed the Group’s five-year strategic plan
• Held a Board Strategy Day which included consideration of the steps required to future-
proof our platforms in order to position Tate & Lyle at the centre of the future of food beyond
the next five years
• Considered the Group’s strategy and ongoing activities for organic and M&A growth
opportunities
Financial
• Considered and approved the full-year results for the year ended 31 March 2023, the
half-year results for the year ended 31 March 2024, and the Q3 trading statement for the year
ended 31 March 2024
• Considered and approved the annual operating plan for the year ending 31 March 2025 and
the Group financing plan
• Considered the Group’s pension arrangements, Treasury policy and Group insurance
renewals for the year ended 31 March 2025
Internal Control and Risk Management
• Considered and agreed the Group’s risk appetite and principal risks
• Assessed the effectiveness of our internal controls and risk management systems
• Agreed the Viability Statement as disclosed in the Annual Report 2023
• Approved the adoption of a going concern basis of accounting in preparing the half- and
full-year results
• Agreed the Modern Slavery Act statement, available at:
www.tateandlyle.com/anti-slavery-statement
Governance and stakeholders
• Considered the output and recommendations from the Board effectiveness review
• Discussed feedback from institutional shareholders and analysts
• Reviewed and approved the directors’ register of interests
Operational/commercial
• Received regular progress updates on the Group’s Environment, Health, Safety, Quality and
Security performance
• Considered progress against the priorities established by Global Operations in July 2022 and
its priorities following the creation of the Primient joint venture in April 2022
• Considered how Global Operations is thinking about supply chain requirements for Tate & Lyle
in five years and beyond as it drives its agenda to be at the centre of the future of food
•
R
eceived an update on the three-year programme commenced in 2022 within the
commercial and innovation functions to accelerate our solutions offering to customers
•
C
onsidered the priority areas identified for building our capabilities in science
•
C
onsidered the transition to regional supply chain models and potential disruptors to the
supply chain namely climate change and potential geopolitical risks
• Reviewed progress on our long-term purpose targets, including our sustainability targets for
2030 and our pathway towards net zero by 2050. Also discussed the setting of new targets for
greenhouse gas emissions reduction to 2028
• Received a presentation from an external expert about the nature and potential of generative
AI and the role it can play in Tate & Lyle’s business
• Received updates on the digital roadmap
Leadership and employees
• Undertook a search for a new Chair following Dr Gerry Murphy’s decision to step down in
August 2023
• Undertook a search for a new non-executive director and appointed Jeff Carr with effect
from April 2024
• Reviewed the Group’s people agenda including equity, diversity and inclusion, talent
management and bench strength within the organisation
88
Governance
Tate & Lyle PLC Annual Report 2024
Board activity continued
Directors’ attendance at Board and Committee meetings during the financial year
Name Board
Audit
Committee
Remuneration
Committee
Nominations
Committee
Dr Gerry Murphy
2
2/2 2/2
1
1/1
1
-
David Hearn
3
3/3 1/2
1
2/2
1
2/2
Nick Hampton 8/8 4/5
1
4/4
1
5/5
1
Dawn Allen 8/8 5/5
1
--
John Cheung 7/8 4/5 - 4/5
Patrícia Corsi 8/8 - 4/4 5/5
Dr Isabelle Esser 8/8 - 4/4 5/5
Paul Forman
4
5/5 3/3 - 3/3
Lars Frederiksen 8/8 - 3/4 4/5
Kim Nelson 8/8 5/5 - 5/5
Sybella Stanley 8/8 5/5 4/4 5/5
Warren Tucker 8/8 5/5 4/4 5/5
1 Although not a Committee member, attended the Committee meetings by invitation.
2 Stepped down from the Board on 31 August 2023.
3 Appointed to the Board as Chair and non-executive director with effect from 1 January 2024.
4 Retired from the Board on 31 December 2023.
Board effectiveness review
2024 Board effectiveness review
This year’s evaluation of the Board and its Committees was internally facilitated using
questionnaires circulated to the relevant Board members as well as to regular attendees from
management and external advisors. The questionnaires sought input on a range of matters
including: composition; Board and Committee dynamics; engagement with management; effective
oversight of matters within remit, including risk; and quality of papers and presentations. The review
concluded that the Board and its Committees are effective. The report identified areas for ongoing
or increased focus in the 2025 financial year. Please see pages 100, 102 and 108 for information
about the effectiveness evaluations of each of the Committees and of individual directors
conducted this year.
2025 areas of focus
The areas of focus for the 2025 financial year remain similar to those in the prior year as the Board
seeks to support the management team in delivering on the Group’s strategic plan and ambition as
a growth-focused speciality food and beverage solutions business.
Area of focus Action
Continuing to focus on
mergers and acquisitions
(M&A)
The Board and the management team will continue to review M&A
opportunities and to monitor the integration of previous acquisitions
including Quantum.
Organic growth and
innovation
The Board will continue its focus on the key strategic pillars for future
success.
Building our
understanding of
customers and
consumers
The Board will continue to welcome opportunities to gain a greater
understanding of customers, consumers and market trends and how
Tate & Lyle can be the solutions partner of choice for our customers.
Board succession
planning, and talent
development throughout
the organisation
The Nominations Committee will focus on succession planning for
those non-executive directors who are due to retire from the Board in
the near term, in particular the Chair of the Remuneration Committee.
The Board will also consider long-term executive succession
planning and how we ensure that the Group’s talent strategy reflects
its future needs.
In April 2024, Dawn Allen announced her decision to leave Tate & Lyle
in October 2024. Therefore, in the first half of the 2025 financial year,
the Board will focus on appointing a new Chief Financial Officer.
Culture, equity, diversity
and inclusion
The Board will continue to monitor the culture of the organisation with
a particular focus on our progress towards greater equity, diversity
and inclusion within our business.
89
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Why they matter Engagement activities Outcomes/impact
Shareholders
Our shareholders are investors in and owners of our
business, providing the capital we need to invest in and
grow the business.
Engagement takes various forms throughout the year
by Executive Directors; our Chair; and our Investor
Relations team.
Our engagement activities provide opportunities for management
and the Board to communicate our strategy and performance, and
to listen and understand shareholders’ views and concerns.
Customers
As a business-to-business company, all the ingredients
we make are sold to our customers. Listening to our
customers helps us to better understand their needs
and provide the products and services they want.
We maintain close relationships with our customers at
all levels of their organisation, from the Chief Executive,
to R&D, to Sales and Marketing. We are a growth partner
for many of our customers.
Our ingredients help our customers meet growing consumer
demand for food and drink which is lower in sugar, calories and fat,
and with added fibre and protein, and which also taste great.
Customer insight and market understanding plays an important
part in our decision-making process, for example, in areas such as
new product development and capacity expansions.
Two years ago, we launched a targeted programme to develop new
ways of working with our customers to build stronger solutions-
based partnerships. During the year, we continued to invest in
strengthening our solutions capabilities in areas like sensory,
nutrition and regulatory to support our customers.
Employees
Everyone at Tate & Lyle plays a role in driving our
success by partnering with each other in an agile way to
deliver a consistently great service for our customers, to
ensure our plants run safely and efficiently, and that new
products are created that provide solutions to address
our customers’ and consumers’ needs.
We listen to our employees to gain their insight and
feedback through a range of channels such as team
meetings, townhalls and pulse surveys. This feedback
helps us to take actions and establish programmes
which develop and stretch our employees and helps
them both deliver our strategy and fulfil their personal
goals. Details of the Board’s engagement with
employees are set out from page 92.
Having the right culture is central to our success. People are at their
best when they feel they are contributing to the Group and are fully
engaged and happy in their work. We continued to operate a
number of programmes to keep our people safe, well connected
and productive. The Board maintains a focus on equity, diversity
and inclusion. See pages 92 to 93 for more details on our people
and how we engage with them.
We engage with a wide range of stakeholders,
all of whom are essential in enabling us to do
business across the world.
The table below describes our key stakeholders and summarises
the engagement that has been undertaken across the business,
including by the Board, during the year. In addition, the Board’s
engagement with our workforce is set out from page 92. How the
Board understands the interests of stakeholders, and how the
Board considers stakeholders’ interests in decision making,
including examples of principal decisions made in the financial
year and our section 172(1) statement, are summarised on page 95.
Stakeholder
engagement
90
Governance
Tate & Lyle PLC Annual Report 2024
Why they matter Engagement activities Outcomes/impact
Suppliers
We cannot conduct or grow our business without the
products, expertise, advice and support of our
suppliers.
We have a dedicated procurement function, based
around the world, which engages with our suppliers
to optimise the way we work with them.
We build relationships globally, regionally and locally
with our suppliers to better understand the markets
where we source.
By leveraging third-party supplier relationships we are able to be
more agile and meet ever-changing customer demands. This also
limits our supply risk across an increasingly complex global supply
network.
Communities
It’s where our employees and their families live and
where we recruit many of the people who work for us.
It’s also important that, as a significant local employer in
some locations, we support the local community not
only through employee involvement but as a
responsible and sustainable local manufacturer.
Our community involvement programme is centred
around three main areas: health, hunger and
education, with a particular emphasis on supporting
children and young adults. We support projects in our
local communities based on these three areas.
Through a range of programmes supporting health, wellbeing and
education across the world, we help improve the lives of thousands
of people in our local communities. See pages 50 and 51 for more
details.
Through our partnership with food banks across the world, we have
donated 4.2 million nutritious meals to people in need in our local
communities since 2020.
We have also helped 47,000 children and students through learning
programmes, grants and bursaries since 2020.
Regulators
Before our new ingredients can be incorporated into our
customers’ products they must be approved by
regulatory authorities.
We have a dedicated team of regulatory experts,
based around the world, who actively engage with
regulators to provide evidence of, and answer
enquiries about, the safety and quality of our
ingredients.
By helping regulators understand our ingredients we speed up the
process of regulatory approval.
Governments
Government policies on trade, safety and product
quality, transport, tax and inward investment, among
others, all have an impact on how we do business.
We meet periodically with federal, state and local
officials in countries where we have significant
operations.
We are also members of major trade associations in
our key markets, such as the Corn Refiners
Association in the US.
Government policies and legislation, in areas such as trade and tax,
can have an impact on our ability to operate competitively, and sell
and transport our products around the world. At a more local level,
permits are needed to operate or expand our production facilities.
Stakeholder engagement continued
91
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
People and culture
Engaging with our people
To meet the 2018 UK Corporate Governance Code requirements on
workforce engagement, the Board concluded that each Director should
be active in engaging with our people in order to gather their views and
to understand the culture within the Group. The Board decided not to
introduce any of the three methods suggested in the Code but to
develop an approach which built on the mechanisms and practices
which we already had in place, in particular the non-executive director
site visit programme. The methods of engagement are set out below.
It is the practice at each Board meeting for the Chair and the non-
executive directors to brief the Board on their interactions with, and
impressions of, our people, our sites and our culture. The Board believes
that these methods of engagement have enabled them to learn the
views of a wide cross-section of the workforce and to understand how
our strategy, purpose and priorities are being received, understood and
applied across Tate & Lyle.
At Tate & Lyle, we consider our workforce to include employees,
contractors (in post for three months or more), representatives in
countries where we do not have employees and contingent labour.
We do not include temporary contract labour (of less than three months),
service provision workers, outsourced contract consultants and staff at
our joint ventures.
Engagement activities
Individual non-
executive director
site visits
In June 2023, non-executive director, Lars Frederiksen, visited our corn wet mill plant in Boleráz, Slovakia, and in October
2023, non-executive director, John Cheung, visited our stevia plant in Anji, China.
In January 2024, Chair of the Audit Committee, Warren Tucker, visited our offices in Singapore and Quantum, our dietary
fibre business in China.
Supporting Employee
Resource Groups
Non-executive director, Kim Nelson, continued to provide support to the Black Employee Network.
Employee surveys
and engagement
initiatives
The Chief Executive and the Chief Human Resources Officer regularly report to the Board on the outcome of employee
surveys and other engagement initiatives. The quarterly business performance dashboard which is shared with the
Board contains information on the number of open roles, regrettable resignations and gender diversity throughout
the workforce.
CEO Newsletter,
‘virtual cafés’ and
on-site townhalls
Nick Hampton and Executive Committee members share a business update with the workforce via email every month.
Nick also holds virtual cafés twice a year with each of the four regions, sometimes with other members of the
Executive Committee.
During the course of the year, Nick and other members of the Executive Committee held townhalls with staff at our sites
in: Koog aan de Zaan, the Netherlands; Hoffman Estates, Sagamore, and Decatur, US; Singapore; Thailand; Shanghai,
Anji, and Guangdong, China; as well as opening our new Customer Innovation and Collaboaration Centre in Jakarta,
Indonesia.
Additionally, Dawn Allen visited our Global Shared Services Centre in Łódź, Poland, twice in the year, and conducted
townhalls there on each occasion.
These activities provide our broader employee population with an opportunity to connect with the executive directors.
Stakeholder engagement continued
Visiting colleagues in China
Non-executive director, John Cheung,
Chief Executive Nick Hampton and
Andrew Taylor with members of the China
business leadership team at our stevia site
in Anji, China.
Visiting a key European facility
Non-executive director, Lars Frederiksen
with colleagues at our corn wet mill plant in
Boleráz, Slovakia.
92
Governance
Tate & Lyle PLC Annual Report 2024
Assessing and monitoring culture
As described in the Chair’s introduction to corporate governance
on pages 84 and 85, the Board has multiple touchpoints
throughout the year which provide opportunities for gauging and
monitoring the culture at Tate & Lyle and how it aligns with our
purpose and values. These touchpoints include individual Board
member engagement activities and management reports to the
Board and its Committees on a range of topics including:
environment, health and safety performance; results of employee
engagement surveys; equity, diversity and inclusion statistics
and analysis; reports to the whistleblowing hotline; reports from
the Head of Internal Audit; and reviews of workforce policies and
practices. On those occasions where the Board is not satisfied
that policy, practices or behaviours are aligned with the
Company’s purpose, values and strategy, it seeks assurance
from management that: (i) it has thoroughly understood the
extent of and the reasons for the issue; (ii) it has considered
whether the issue concerned could have implications across the
wider Group; (iii) corrective action has been taken to address the
issue; and (iv) any lessons which might be learnt are identified
and communicated across the Group.
Ethics and whistleblowing programme
Speak Up, the Group’s whistleblowing programme, has been in
place for a number of years in all operations controlled by the
Group. This programme, which is monitored by the Board, is
designed to enable employees, contractors, customers, suppliers
and other stakeholders to raise concerns confidentially about
conduct they consider contrary to the Group’s values. It
may include, for example, unsafe or unethical practices, or
criminal offences.
The Speak Up programme provides a number of ways to raise
concerns including to various internal points of contact, as well
as through an independent service provider which provides a
telephone reporting line, an email and a web-based reporting
facility. The independent reporting line allows reports in multiple
languages and allows people to report anonymously. Any
whistleblowing concerns are confidentially reviewed by the
Ethics & Compliance team and, as per our Whistleblowing Policy,
appropriately investigated by the appropriate team. At the
conclusion of an investigation, if a matter is substantiated,
appropriate action is taken, as well as identification of any
potential lessons learned. For more information about Speak Up,
see page 49.
During the financial year, reports were analysed and monitored
to ensure the process continued to be effective. The Head of
Ethics and Compliance reports to the Board once a year on the
whistleblowing programme and the Audit Committee twice a
year on the wider ethics and compliance programme, as well as
on whistleblowing.
Engagement with investor community
Investors are an essential stakeholder for any listed company.
At Tate & Lyle, as well as our institutional investors and debt
investors, we have a significant number of retail shareholders,
including many employees and retired employees, who have a
personal interest in the ongoing success of the Company.
Our Investor Relations programme has two objectives. It aims
to help existing and potential investors understand Tate & Lyle,
and to ensure that directors understand the views of our major
investors through regular feedback. All directors receive periodic
updates on investor communication activities, including at every
Board meeting.
Institutional investors
Nick Hampton, Dawn Allen, and our VP, Investor Relations,
maintain a programme of meetings with institutional investors
from the UK, Europe and North America. Our key meetings take
place after our full-year and half-year results, but we also meet
investors regularly outside the results cycle. These meetings
are often face-to-face but we also use video conferencing
technologies to maximise engagement opportunities, particularly
for non-UK based investors. Many of these meetings are
arranged direct, but we also take part in investor conferences
arranged by sell-side institutions. We also use live-broadcast
interviews with sell-side analysts to reach a broader audience
of investors. Other members of the senior management team
occasionally participate in these conferences where possible,
giving investors the opportunity to appreciate the breadth and
depth of the executive team.
As well as the full-year and half-year results presentations to
investors and analysts, we host conference calls after trading
updates are issued. The audio recordings of these calls are
made available on our website for a short period after each event.
Dawn Allen and the VP, Investor Relations, also meet regularly
with sell-side analysts.
Investing in and rewarding our people
The Remuneration Committee considers remuneration
arrangements for our global workforce. The Group’s
remuneration strategy is to provide competitive packages that
enable the Group to recruit, retain and motivate high-calibre
individuals in the markets where we operate, so that we can
deliver consistently strong operational performance and financial
results. For more information, see our Directors’ Remuneration
Report from page 108.
Stakeholder engagement continued
It was great to visit our dietary fibre business,
Quantum, in China; to meet the team there, to
better understand the important contribution this
business makes to our strategy and to see the
good progress they have made integrating into the
wider Tate & Lyle Group.
Warren Tucker
Non-executive director and Chair of the Audit Committee
Warren Tucker, non-executive director, with Andrew Taylor on a tour
of our Customer Innovation and Collaboration Centre in Singapore
93
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
May 2023
• Full-year results
issued
• UK investor
roadshow meetings
– by video and
in person
• US investor
roadshow meetings
– by video
June 2023
• UK investor
roadshow meetings
– by video and
in person
• US investor
roadshow meetings
– in person
• Annual Report
published
July 2023
• Annual General
Meeting
September 2023
• Investor conferences
in London –
in person
November 2023
• Half-year results
issued
• UK investor
roadshow meetings
– by video and
in person
• US investor
roadshow meetings
– by video
• Investor conference
in France – in person
• Investor conference
in Ireland – in person
December 2023
• Investor conference
in the UK – by video
• US investor
roadshow meetings
– by video
February 2024
• Trading statement
issued
March 2024
• Investor conferences
in the UK – in person
Feedback
Our corporate brokers regularly seek investors’ feedback
following key announcements and investor meetings. A
summary of feedback is communicated to all Directors. Our
advisors also give us updates on best practice in investor
relations, which we seek to reflect in our programme. Recent
recommendations include suggestions to support our efforts to
build a broader shareholder base primarily in North America and
expanding time dedicated to the communication of environmental,
social and governance (ESG) matters, an area growing
significantly in importance to the whole investment community.
Other capital providers
The Chief Financial Officer, Head of Group Treasury, and VP,
Investor Relations met periodically with our committed lending
banks, debt investors and ratings agency (Standard & Poor’s).
Private (retail) shareholders
We encourage private shareholders to talk to our Company
Secretary who will share their views with the Board. We also
include a questions card with the AGM documentation we send
to shareholders so that those who cannot come to the meeting
can have their questions answered.
Annual General Meeting
The AGM gives all shareholders the opportunity to ask questions
of the Board, including about this Annual Report.
We look forward to meeting shareholders at our AGM in July.
The details of the 2024 AGM are set out in the Notice of AGM.
Votes received in respect of each resolution put to the AGM,
together with the number of abstentions, are announced through
a regulatory information service and published on the Company’s
website. Shareholders can choose to receive shareholder
documentation, including the Annual Report, electronically or in
paper format, and may submit proxy votes and any questions
either electronically or by post.
Investor calendar
Set out below is a summary of our major investor activity during the year:
Engaging with shareholders
Stakeholder engagement continued
94
Governance
Tate & Lyle PLC Annual Report 2024
Section 172(1) statement
Section 172 of the Companies Act 2006 requires a director of a
company to act in the way he or she considers, in good faith,
would most likely promote the success of the company for the
benefit of its members as a whole. In doing this, section 172
requires a director to have regard, among other matters, to the:
• likely consequences of any decisions in the long term;
• interests of the company’s employees;
• need to foster the company’s business relationships with
suppliers, customers and others;
• impact of the company’s operations on the community and
environment;
• desirability of the company maintaining a reputation for high
standards of business conduct; and
• need to act fairly as between members of the company.
In discharging our section 172 duties we have regard to the
factors set out above. We also have regard to other factors which
we consider relevant to the decision being made. Those factors,
for example, include the interests and views of our pensioners.
We acknowledge that every decision we make will not
necessarily result in a positive outcome for all our stakeholders.
By considering the Company’s purpose and values together with
its strategic priorities, and having a process in place for decision
making, we do, however, aim to make sure that our decisions are
consistent and predictable.
For details on how our Board operates and the way in which we
reach decisions, including the matters we discussed and debated
during the year, the key stakeholder considerations that were
central to those discussions and the way in which we have had
regard to the need to foster the Company’s business relationship
with customers, suppliers and other stakeholders, please see the
Chair’s introduction to corporate governance from page 84, our
corporate governance structure from page 86, Board activity on
page 88, and stakeholder engagement from page 90.
We set out below some examples of how the directors have
had regard to the matters set out in section 172(1)(a)-(f) when
discharging our section 172 duty and the effect of that on
decisions taken by them.
Annual strategy review
Each year the Board carries out a review of the Group’s strategy,
in addition to reviews of the business and enabling units
throughout the year. In 2023, at the Board’s annual strategy day,
directors spent time considering the steps which Tate & Lyle
needs to take to future-proof our platform strategies so that we
can continue to position the Company at the centre of the future
of food over the longer term (that is, five years and beyond).
These discussions focused on the long-term interests of the
Company, the interests of shareholders, employees, customers
and the impact of the Company’s operations on local
communities and the environment.
Dividend
The Board recognises the importance of dividends to
shareholders and maintains a progressive dividend policy in the
context of its growth-focused strategy, and aims to increase
earnings cover over time.
At the 2023 AGM, shareholders approved a final dividend of
13.1p
per share. In accordance with the approach described in our
Annual Report 2023, that interim dividends would be paid at one
third of the previous year’s full-year dividend, the Board approved
an interim dividend for the six months to 30 September 2023 of
6.2p per share. Total dividends paid to shareholders in the 2024
financial year were £76 million.
As well as the cash dividend option, shareholders are also offered
a Dividend Reinvestment Plan alternative.
Responding to the war in Ukraine
The war in Ukraine continues to impact our employees in Europe,
particularly in Poland and Slovakia which experienced the
resulting refugee crisis in the first few months of the conflict.
We continue to support charities working in Łódź, Poland, and
Boleráz, Slovakia, cities where we have operations and which
saw an influx of refugees from Ukraine.
Responding to the cost-of-living crisis
Donating to food banks has been a part of our community
programme for many years. With the cost-of-living crisis we saw
demand at food banks increase significantly so we increased our
support too. We donated over 550,000 meals in the year taking
the total meals donated since 2020 to 4.2 million.
Acquisitions
Tate & Lyle is a growth-focused business with a priority to invest
in growth whether organically, or inorganically through M&A. The
Board routinely considers potential M&A opportunities which are
designed to broaden and deepen our portfolio to better serve and
partner with customers, and to extend our strong positions in
sweetening, mouthfeel and fortification. We look at M&A
opportunities in these platforms and in attractive geographies
where population growth is higher such as Asia.
For example, in June 2022, we announced that we had completed
the acquisition of Quantum Hi-Tech (Guangdong) Biological Co.,
Ltd (Quantum), a leading dietary fibre business in China. Since the
acquisition, the Board has taken an active interest in progress
towards integrating Quantum into Tate & Lyle to ensure that it
operates within our framework of standards and controls and in
accordance with our values and purpose for the benefit of all our
stakeholders. In January 2024, non-executive director and Chair
of the Audit Committee, Warren Tucker, was able to visit
Quantum in person and to meet the leadership team and other
colleagues. For more information on how the Audit Committee
has monitored the integration of acquisitions, see page 102.
95
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Section 172(1) statement continued
The Board continues to monitor the integration of previous
acquisitions in Asia; Chaodee Modified Starch (tapioca) in
Thailand and Sweet Green Fields (stevia) in China.
Sustainability
The Board recognises the need for businesses to play their part in
reducing global greenhouse gas emissions for the benefit of all
our stakeholders. That is why the Board is fully supportive of the
Group’s sustainability targets and commitments aimed at
reducing our environmental impact.
The Board was particularly pleased that, in May 2024, the
Company announced ambitious new targets to reduce its
greenhouse gas (GHG) emissions in line with reductions required
to limit global warming to 1.5ºC above pre-industrial levels. These
targets have been validated as science-based by the Science
Based Targets initiative. The Board also fully supports the
Company’s commitment to reach net zero by 2050. The Board
receives regular updates on progress towards our sustainability
targets and commitments and considers proposals for capital
expenditure at our plants in the context of sustainability among
other factors.
Equity, diversity and inclusion
The Board of Tate & Lyle recognises the importance of equity,
diversity and inclusion to all its stakeholders and for the success
of the Tate & Lyle business.
That is why in December 2021, Tate & Lyle announced a new
strategy for equity, diversity and inclusion consisting of four
pillars – systems, talent, culture and society and a set of
ambitious targets and commitments spanning each of these
pillars to 2030 (see page 48). The Board monitors our progress
against these targets and commitments and is pleased to see
good progress.
96
Governance
Tate & Lyle PLC Annual Report 2024
How we have applied the principles of the Corporate Governance Code
Compliance with the 2018 UK Corporate Governance Code: for the year ended 31 March 2024, we applied the principles and complied with the provisions of the Code, with the exception of one element
of provision 24, which relates to the composition of the Audit Committee. Further explanatory details can be found in Section 4 on page 99. The Code can be found at www.frc.org.uk.
1. Board leadership and purpose
A. The role of the Board:
Our Board comprises a diverse group of skilled and experienced
individuals as described in their biographies on pages 80 to 82.
Working within the governance structure set out on page 86 and
through a programme of regular meetings with agendas which
focus on financial performance, strategic initiatives,
sustainability, risk management, our people and our priorities,
together with an annual strategy day, the Board promotes the
long-term sustainable success of the Company through the
decisions it takes about the products, customers, markets and
geographies in which the Group operates and invests. The
Board maintains a progressive dividend policy to share the value
generated by these operations with shareholders. Tate & Lyle’s
products, many of which also support health and wellbeing, and
our sustainability strategy, contribute to wider society.
For more information about the Group’s strategy, see the
Strategic Report from page 8.
B. Purpose, values and culture:
The Board fully endorses Tate & Lyle’s purpose of Transforming
Lives through the Science of Food. This purpose informs our
strategy, our values and our culture and inspires our people. The
Board reviews workforce culture and employee engagement
through a series of touchpoints throughout the year. The Audit
Committee receives quarterly updates from our Internal Audit
function as well as regular updates from our Head of Ethics and
Compliance. These updates include the results of internal audits
and whistleblowing and provide insights into the culture of the
Group and individual areas of the business. The Committee
reviewed steps taken by management to address any areas of
concern and to ensure follow-up actions were taken.
For more information about: our purpose, see from page 13;
workforce engagement, see page 92; Board oversight of culture
see page 93; and the work of the Audit Committee, see page 102.
C. Resources and controls:
The Board ensures that the necessary resources are in place for
the Group to meet its objectives and measure performance
against them. The Group has an executive Risk Committee and
operates a three lines of defence model which provides a
framework for establishing a range of internal controls and
managing risk.
Conflicts of interest:
The Board has a formal system in place for directors to declare a
conflict, or potential conflict of interest in other companies,
including as significant shareholdings. A statement of directors’
interests in Tate & Lyle shares is set out on page 125.
For more information, see the Risk Report from page 63 and the
Audit Committee Report from page 102.
D. Shareholder and stakeholder engagement:
The Board maintains regular engagement, whether directly or
indirectly, via feedback from the Chief Executive and other
members of management, with shareholders as well as a range
of key stakeholders.
For more information on our engagement with shareholders, see
the Chair’s introduction to corporate governance from page 84,
the shareholder engagement section on pages 93 and 94 and
the Remuneration Committee Chair’s introduction to the
Directors’ Remuneration Report on page 108.
For information on our approach to stakeholder engagement,
see from page 90. Our section 172(1) statement is set out from
page 95.
E. Workforce policies and practices:
Our Code of Ethics sets out our values and the standards of
behaviour we expect from everyone at Tate & Lyle and those
who work with us. We encourage people to report any breaches
of the Code of Ethics through our Speak Up (whistleblowing)
programme which is available to all our workforce and to third
parties. The Board is given access to the Code of Ethics training
undertaken by our people and reviews the operation of and
reports from the Speak Up programme.
For more information about this and our approach to ethics and
compliance generally, see page 49.
Our governance structure
97
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
2. Division of responsibilities
F. The role of the Chair:
David Hearn, our Board Chair, leads the Board and facilitates
constructive and open dialogue and debate between the Board
and management. Under his leadership the Board is responsible
for its overall effectiveness in directing the Company and, every
year, the Board conducts a review of its own effectiveness and
that of its Committees. The Chair reviews the performance of
individual non-executive directors and the Senior Independent
Director leads a review of the Chair. The Nominations
Committee reviews the performance of the executive directors.
For information about the outcome of the Board’s effectiveness
review this year, see page 89 and the Nominations Committee
Report from page 100.
G. Board composition and division of responsibilities:
At the date of this report, the Board comprises ten Directors in
addition to the Chair: two executive directors (Chief Executive,
Nick Hampton and Chief Financial Officer, Dawn Allen) and eight
independent non-executive directors, one of whom is the Senior
Independent Director. None of the directors has served on the
Board for more than nine years. The Board considers all the
non-executive directors to be independent. The Chair was
deemed independent on appointment.
Membership of the Board and information about individual
directors is set out from page 80. The responsibilities of the
executive and non-executive directors are described on page 87.
H. Role of the non-executive directors:
The role of the non-executive directors is to provide constructive
challenge and strategic guidance, offer specialist advice and
hold management to account. Before every Board meeting the
Chair holds a pre-meeting without the executive directors
present to gather the views of the non-executive directors on
the papers submitted and the topics to be discussed. At the
conclusion of each Board meeting, the Chair holds another
meeting without the executive directors present to consider
and discuss any matters that have arisen during the meeting.
The Chairs of the Audit and Remuneration Committees also
hold meetings without the executive directors present at each
Committee meeting.
Time commitment: in accepting their appointment to the Board
of Tate & Lyle, non-executive directors confirm that they are able
to allocate sufficient time to discharge their duties effectively.
Each year the Nominations Committee reviews the time
commitments of the non-executive directors, which indicates
that in a typical year, non-executive directors spend between
30 and 46 days on business relating to Tate & Lyle, with the
Chairs of the Audit and Remuneration Committees spending
the most time.
The Board Chair typically spends two days a week on
Tate & Lyle business. In 2019, the Board agreed a framework
for determining the number of public company directorships
that directors can undertake in addition to their appointment at
Tate & Lyle in order to ensure that they do not become
over-committed.
The significant commitments of each of the Directors are
included in the Board biographies from page 80. For more
information, see meeting attendance in the 2024 financial year
on page 89.
I. Ensuring the Board functions effectively and efficiently:
The Company Secretary works with the Board Chair, the
Chairs of the Committees, the Chief Executive and other
members of management to ensure that the Board has the
policies, processes, information, time and resources it needs
in order to function effectively and efficiently. All Directors
have access to the advice of the Company Secretary who is
responsible for advising the Board on all governance matters.
Directors also have access to the advice of the EVP, General
Counsel, as well as independent professional advice at the
expense of the Company.
3. Composition, succession and evaluation
J. Succession planning for the Board:
The Nominations Committee (which comprises all the non-
executive directors and the Chair) is responsible for succession
planning for, and recommending candidates for appointment to,
the Board and certain senior management positions. It applies a
formal, rigorous and transparent process focused on finding
candidates who can support the strategic priorities of the
business while also representing the diversity of our global
workforce and customer base. The UK Corporate Governance
Code provides that all Directors should seek re-election on an
annual basis and all Directors will seek re-election at the
2024 AGM.
For more information about the work of the Nominations
Committee and the Board’s policy on diversity and inclusion,
see the Nominations Committee Report from page 100.
K. Skills, experience and knowledge of the Board:
The Nominations Committee ensures that the Board and its
Committees have a combination of skills, experience and
knowledge necessary to discharge their oversight roles and to
support the management team in the execution of the
Company’s strategy.
For more information on the Board’s skills and experience, see
page 80 and the Nominations Committee Report from page 100.
L. Board evaluation:
In the 2024 financial year, the Board undertook an internally
facilitated review, in line with the UK Corporate Governance
Code guidance. The last externally facilitated review was
undertaken in the 2023 financial year.
For more information, see the Board evaluation on page 89.
Our governance structure continued
98
Governance
Tate & Lyle PLC Annual Report 2024
4. Audit, risk and internal control
Provision 24: Following the departure of Dr Gerry Murphy, Board Chair, on 31 August 2023, Warren Tucker acted as Interim Chair until David Hearn joined on 1 January 2024. The Board considered
that Warren was best placed to execute this interim role, and during this time Warren continued as Chair of the Audit Committee. Therefore, during the year, there was a four-month period of
non-compliance with Provision 24 of the Code.
5. Remuneration
M. Ensuring the independence and effectiveness of internal
and external audit:
The Audit Committee is responsible for reporting to the Board
on a range of matters concerning audit, risk and internal controls.
In particular, the Audit Committee reviews and monitors the
independence and performance of the internal audit function,
and the external auditor, EY. The Audit Committee has
established and monitors a policy for non-audit work which EY
is permitted to conduct.
For further information about the role and work of the Audit
Committee, external audit and the Internal Audit function, see
from page 102.
N. Fair, balanced and understandable assessment:
The Audit Committee reviews the financial statements set out in
the Group’s annual and half-year results and reports its findings
and recommendations to the Board. The Board, as a whole,
considers the recommendations of the Audit Committee, the
representations made by management and the views of the
internal and external auditor in order to satisfy itself of the
integrity of the narrative and financial statements and to
determine whether the financial and narrative statements when
taken together present a fair, balanced and understandable
assessment of the Company’s position and prospects.
For further information, see the Audit Committee Report from
page 102 and the ‘fair, balanced and understandable’ statement
on page 107.
O. Risk management and internal controls:
The Audit Committee oversees the internal controls framework
and receives regular reports from management and the internal
audit function on the effectiveness of that framework. It reports
its findings to the Board. At least twice a year, the Board reviews
the principal and emerging risks which apply to the Group to
ensure that they remain current and that, to the extent possible,
there are mitigation plans in place to manage those risks in
accordance with the risk appetite that the Board determines,
from time to time, is appropriate to achieve the long-term
strategic objectives of the Group.
For further information, see the Risk Report from page 63 and
the Audit Committee Report from page 102.
P. Designing remuneration policies:
The Remuneration Committee is responsible for determining
remuneration policies and practices which support the strategy
and promote the long-term sustainable success of the Group.
For more information about the work of the Remuneration
Committee, see the Directors’ Remuneration Report from
page 108.
Q. Executive remuneration:
The Directors’ Remuneration Policy was approved by
shareholders on 27 July 2023 with 96.08% for. A summary of the
Policy can be found from page 113, and a copy of the approved
Policy can be found on the Company’s website. As part of the
process for developing the Directors’ Remuneration Policy, the
Chair of the Remuneration Committee consulted major
institutional shareholders on the Committee’s proposals.
The current Directors’ Remuneration Policy can be found in the
2023 Annual Report, available on the Company’s website at
www.tateandlyle.com/annual-report
R. Remuneration outcomes and independent judgement:
The Remuneration Committee determines remuneration
outcomes for the executive directors and other members of
senior management and in so doing exercises independent
judgement and discretion in the context of Company and
individual performance and the wider circumstances.
No director or member of management is involved in
determining their own pay.
For more information about the Remuneration Committee and
remuneration outcomes, see the Directors’ Remuneration
Report from page 108.
Our governance structure continued
99
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Nominations
Committee Report:
Chair’s introduction
I have inherited a strong board which will
focus on succession planning for the future.
I am fortunate to have inherited a board which is diverse, not
only in terms of gender and ethnicity but also in terms of age,
experience and international perspectives – all of which is of
great benefit to Tate & Lyle. Working with Nick Hampton and my
colleagues on the Nominations Committee, our first priority this
year is to find a successor to Dawn Allen as Chief Financial
Officer. Dawn will leave the Board by the end of October 2024.
In addition, the Board will refresh its focus on succession planning
for those non-executive directors who are due to retire in the
near term.
Succession planning
Non-executive directors
At the end of 2023, Paul Forman, our Senior Independent Director
retired from the Board after nine years and having led the search
for a successor to Dr Gerry Murphy. My fellow Board colleagues
and I are grateful to Paul for remaining on the Board beyond his
planned retirement date to lead and conclude the search.
Kim Nelson became the Senior Independent Director upon Paul’s
retirement. Kim has served on the Tate & Lyle Board since 2019
and has a deep understanding of the business.
The Board was pleased that Jeff Carr joined the Board as a
non-executive director in April 2024. Until March 2024, Jeff was
the CFO of Reckitt Benckiser Group plc. He brings over 30 years
of experience in international financial roles, across a range of
consumer and retail companies, together with knowledge of the
investor community.
In 2025, we anticipate that Sybella Stanley, Chair of our
Remuneration Committee and Lars Frederiksen will retire, as they
each approach the nine-year anniversary of their appointment to
the Board. Accordingly, the Nominations Committee will prioritise
Remuneration Committee Chair succession as well as succession
for Lars Frederiksen. In developing candidate profiles for the
non-executive directors we will recruit during the year, the
Nominations Committee will seek to maintain the diversity of
backgrounds and experience of the whole Board in order to
best support the ongoing development of Tate & Lyle in the
coming years.
Executive Committee members
During the year we continued to keep long-term succession
planning for the executive directors and other Executive
Committee members on our agenda.
Diversity at and below the Board
In a purpose-led business like Tate & Lyle, diversity at all levels is
a prerequisite to future-proofing our Company, by ensuring that
our employees reflect the customers and communities we serve.
And, as a global business, our Board needs to reflect the rich
diversity of the regions where we operate.
We are pleased that, at the time of writing, our Board is 45%
women and 18% from Black, Asian or non-white ethnically diverse
groups with a mix of nationalities that reflects the global profile of
our business, with two of the four senior positions on the Board
held by women.
It is also why the Board supported management’s commitment
to achieve 50% gender diversity in leadership and management
roles by 2025. These roles extend to more than 500 managers in
the top five employee bands. The Board monitors progress
against this target and is pleased to see that in the last 12 months
to 31 March 2024 the number of women in leadership and
management roles has increased to 45%.
As at the date of this report, gender diversity of our senior
management
1
and their direct reports was 58% female. Our
Executive Committee is 56% female.
Priorities for the year ahead
In addition to the search for a new CFO and our focus on
non-executive director succession planning, we will consider
long-term succession planning for senior executives at and
below the Board and continue to follow closely the progress of
management’s talent development and equity, diversity and
inclusion initiatives.
David Hearn
Chair
David Hearn
Chair of the
Nominations
Committee
1 In accordance with the Code, senior management is defined as the Executive Committee
(including the Chief Executive and Chief Financial Officer) and the Company Secretary.
In
a
dd
d
it
io
o
n,
t
he
he
Bo
ar
a
d will refre
s
fo
r
thos
e
no
o
n-ex
ec
c
utiv
e
e
di
re
ct
n
ear
te
rm
r
.
Su
Su
cc
cc
es
es
si
s
on
p
p
la
la
nn
n
in
in
g
g
No
N
n-execut
i
ve
di
d
re
ct
c
or
r
s
s
At
At
the end of
20
20
23,
Pa
ul
F
F
or
o
ma
re
e
ti
re
e
d
fr
om
t
t
he
he
B
B
oa
oa
rd
rd
a
f
t
er
e
n
in
fo
fo
r
a
a
succ
es
s
so
o
r to D
r
Ge
Ge
rr
y
y
Mu
and I are
gr
g
at
at
e
f
ul
ul
to
Pa
Pa
ul
u
f
f
or
r
em
e
pl
p
an
n
ne
d
re
re
t
i
reme
nt
nt
d
d
at
at
e
e
to
l
ea
ea
d
Ki
K
m
Ne
Ne
ls
l
on
b
b
ec
ec
am
am
e
e
the
Se
Se
ni
n
o
re
re
ti
ti
re
e
me
m
nt. Kim
ha
ha
s
se
e
rv
ed
d
on
an
an
d has a de
ep
ep
u
nd
n
er
e
st
t
an
a
di
ng
Th
h
e
Bo
B
ar
a
d
d
wa
s
pl
pl
ea
se
se
d
d
th
th
at
t
J
e
no
n
n-ex
ec
utiv
e
e
di
i
re
r
ctor in
Ap
A
ri
r
l
l
th
e
CF
CF
O
O
of R
ec
ec
ki
ki
tt
B
B
en
en
ck
k
is
er
r
G
of
e
xp
p
er
ie
e
nc
nc
e
in
i
i
nt
er
na
a
tional
f
co
c
ns
s
um
um
er
er
a
a
nd
nd
r
et
t
a
ai
l
co
o
mp
m
an
ie
i
nvestor commun
i
ty
y
.
In
2
2
02
2
5,
5
we an
ti
ti
ci
c
pa
a
te
t
t
hat
Sy
Sy
b
Re
R
mu
mu
ne
e
ration
C
C
om
m
mi
m
ttee a
nd
d
ea
ch
a
pp
p
ro
ac
h th
e
e
ni
n
ne
-y
ear
a
th
e
e
Boar
d.
A
cc
or
di
ng
ng
ly
ly
,
th
e
No
N
m
m
R
Re
mu
mu
ne
ra
a
tion
C
C
om
o
mi
m
tt
ee
ee
C
C
ha
a
fo
o
r
La
La
rs
rs
F
F
re
r
de
e
riksen. In
d
d
evel
op
non-
ex
x
ec
e
ut
i
ve
di
re
ct
or
r
s
we
we
w
i
Nomi
na
a
ti
t
on
s
Co
mm
ittee
wi
w
ll
l
s
ba
ck
gr
g
ounds
an
d
experi
en
ce
o
be
b
st
st
s
u
pp
p
or
o
t
th
h
e
on
o
go
go
in
g de
ve
v
co
c
m
i
ng
y
y
ea
ea
rs
r
.
Da
a
vi
i
d
d
H
e
ar
r
n
C
h
ai
a
r
o
f th
e
No
min
a
ti
ti
o
n
s
Co
mm
m
it
te
e
e
100
Governance
Tate & Lyle PLC Annual Report 2024
Gender and ethnicity reporting of the Board as at 22 May 2024
Gender identity of sex
1
Number of
Board members
Percentage
of the Board
Number of senior positions on the
Board (CEO, CFO, SID and Chair)
Number in executive
management
Percentage of executive
management
Men 6 55% 2 4 44%
Women 5 45% 2 5 56%
Not specified/prefer not to say – – – – –
Identity by ethnicity
Number of
Board members
Percentage
of the Board
Number of senior positions on the
Board (CEO, CFO, SID and Chair)
Number in executive
management
2
Percentage of executive
management
White British or other White
(including minority-white groups)
3
982% 3 9 100%
Mixed/Multiple Ethnic Groups – – – – –
Asian/Asian British
4
19% – – –
Black/African/Caribbean/Black British
5
19% 1 – –
Other ethnic group, including Arab – – – – –
Not specified/prefer not to say – – – – –
1 The information in these tables was collected directly from each individual.
2 For the purposes of this disclosure and in accordance with the Code, ‘executive management’ means the Executive Committee (including the Chief Executive and Chief Financial Officer).
3 Patrícia Corsi identifies as Latin White.
4 John Cheung identifies as Chinese (The People’s Republic of China (Hong Kong SAR)).
5 Kim Nelson identifies as African American.
Nominations Committee Report continued
Committee governance
Responsibilities
The Committee assists the Board by reviewing the size
and composition of the Board, including succession planning,
and the leadership needs of the Group generally. It recommends
candidates for appointment as directors and as Company
Secretary and reviews the performance of the executive
directors. Further details of its responsibilities are in the
Committee’s terms of reference, which the Committee
reviews annually and can be found on the Company’s website,
www.tateandlyle.com/about-us/corporate-governance.
Composition
During the year under review, the Committee comprised the
Board Chair and all independent non-executive directors.
The Company Secretary is the secretary to the Committee.
Meetings during the year
The Committee held five meetings during the year, two more than
usual due to the search for a new Board Chair. Attendance during
the year is set out on page 89. The Chief Executive and the Chief
Human Resources Officer are invited to attend and present to
the Committee on an ad hoc basis, depending on the issues
being discussed.
Effectiveness
The Committee carried out an internally facilitated review of its
effectiveness and the output was discussed by the Committee.
This concluded that the Committee continued to operate
effectively and confirmed that the focus for the coming year
would be non-executive succession planning while continuing
to review executive director and executive management team
succession planning.
Work undertaken during the year
The Committee maintains a calendar of items for consideration
at each meeting and reviews and updates it regularly.
Chair recruitment
In July 2023, we announced that Dr Gerry Murphy would step
down from the Board. Paul Forman led the search for a new Board
Chair together with the Committee, which concluded with the
appointment of David Hearn from 1 January 2024.
Board and executive team succession planning
In March 2024, the Committee recommended the appointment
of Jeff Carr as a new non-executive director. The Committee also
considered succession plans for senior executive roles as part
of an ongoing review process.
Review of individual directors and the Executive Committee
Each director goes through a formal performance review process
as part of the annual Board effectiveness review. Although new in
role, David Hearn led performance reviews of the non-executive
directors during April 2024.
The Committee reviewed the performance of the Chief Executive.
The Senior Independent Director, Kim Nelson, gathered views from
members of the Board as to their initial perceptions of, and feedback
for, the Chair, David Hearn, who was appointed on 1 January 2024;
it being too soon in his tenure to conduct a full review of his
effectiveness. These reviews confirmed that each Director
continues to make an effective contribution to the Board’s work
and is well prepared and informed about issues they needed to
consider. In each case, their commitment remains strong. The
Committee evaluated the performance of the members of the
Executive Committee and reported its conclusions to the
Remuneration Committee.
Board diversity
As described in the Chair’s introduction to this Report, the Board
believes that a diverse and inclusive culture is a driver of superior
business performance, growth and innovation. In its Diversity
Policy the Board commits to maintain, as a minimum, 40% female
and 40% male representation, and ethnic representation.
The Committee uses search firms who are signatories to the
FTSE Women Leaders Enhanced Code of Conduct which seeks
to address gender diversity on boards and best practice for the
related search processes. When considering candidate directors,
the Committee reflects in the long- and short-lists a number of
different criteria, including experience, gender, age, culture and
personal attributes such as thinking style.
Diversity below the Board
We recognise that to be a successful company, we must be both
diverse and inclusive. We expect everyone, everywhere, to play
a role in ensuring we become a truly diverse and inclusive
organisation where differences are respected and everyone’s
contributions are valued.
Our approach to equity, diversity and inclusion contains a
commitment to providing opportunities for all colleagues,
irrespective of (among other things) sex, race, ethnicity, colour,
religion, background, age and sexual orientation.
101
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Audit Committee
Report:
Chair’s introduction
Introduction
I am pleased to present the work of the Committee over the year.
We enjoyed welcoming our new Group Finance Controller and,
together with Dawn Allen, seeing their vision for the Finance
function develop. The Committee has continued to take a keen
interest in talent management and succession planning in the
Finance function, including the practice of deep dives into both
the wider function and individual teams. We have every
confidence that the team is well placed to support the business
and provide robust financial reporting during the interregnum
arising from Dawn’s departure later this year.
I continued to engage with our stakeholders, including the Internal
Audit function, senior management, and the external auditor (EY),
to ensure our processes and controls remain robust. In particular,
I have held regular meetings with Jonathan Gill, our new lead
audit partner, through his first year in role.
In January, I enjoyed meeting our regional financial controller and
compliance and audit manager in our offices in Singapore, along
with a number of colleagues. I was pleased to be able to visit
Quantum Hi-Tech in Guangdong, China, with Andrew Taylor and
members of the Asia leadership team to see first-hand how the
integration has progressed since we acquired Quantum in 2022.
The Committee has monitored the operation of the risks and
control framework in Quantum, including reviewing reports
following the Internal Audit team and external auditor’s visit in
March 2024.
In-person audits continued to return to pre-Covid levels from
both the internal and external audit teams. The Committee is
very supportive of these visits as a means to connect deeply with
the business.
Reviews during the year
In addition to the normal review of accounting judgements and
disclosures on key accounting matters including accounting for
exceptional items and taxation (see details set out on page 104),
we continued undertaking ‘deep dives’ into certain aspects of the
control environment. During the year, we again met leaders from
the Group Tax and Treasury teams and undertook in-depth
reviews into their functions, including talent management.
The Committee also received updates on the work of the Internal
Audit team, and on topics including Ethics and Compliance,
IT and cyber risks, data privacy management, and talent
management in Finance. We had our annual deep dive into IT and
cyber risks, and an additional deep dive into the role of the Audit
Committee in sustainability reporting, hearing from external
experts and our own teams.
The Committee continued to monitor the implementation of
Tate & Lyle’s controls, processes and Ethics and Compliance
programme into our recently acquired businesses, Quantum
Hi-Tech and Chaodee Modified Starch. The Committee was
reassured by management and the external auditor that the
Company continued to operate robust processes and controls
throughout this period.
Focus for the coming year
An important focus of work for the Committee this year will be
the handover and transition to a new CFO. The Committee is
reassured that the wider finance team has strong leadership and
is well placed to navigate the period until Dawn’s successor
arrives. As a Committee, we will continue to ensure that EY is
sufficiently challenging of management during the course of its
audit work, and we will concentrate on strategic changes to the
Group, ensuring that there is sufficient assurance over Group
priorities and projects.
Conclusion
I hope that you find this report useful in understanding our work
over the past year, and I welcome any comments from
shareholders on my report.
Finally, I would like to thank my fellow colleagues on the
Committee for their support during the year. I’d like in particular
to thank Paul Forman, who provided enthusiastic and thoughtful
contributions to the Committee over his tenure, and Dr Gerry
Murphy, who provided valuable contributions to meetings as an
attendee over the years.
I look forward to welcoming Jeff Carr to the Committee following
his appointment on 1 April 2024.
Warren Tucker
Chair of the Audit Committee
The Committee has carefully monitored the
integration of our new businesses and their
application of our robust risk and controls
environment.
W
t
t
f
i
F
F
t
t
c
a
a
I
A
t
I
a
I
c
c
w
Q
m
i
T
T
c
c
f
M
I
b
v
t
R
I
d
e
w
Warren Tucker
Chair of the Audit
Committee
102
Governance
Tate & Lyle PLC Annual Report 2024
Audit Committee Report continued
Committee governance
Responsibilities
The Committee assists the Board by overseeing financial
reporting, internal controls and risk management process, the
Internal Audit function, and our relationship with the external
auditor. Further details of its responsibilities are in the
Committee’s terms of reference on the Company’s website:
www.tateandlyle.com/about-us/corporate-governance.
Composition
The Committee, at the date of this report, comprises five
independent Directors: Warren Tucker (Chair), Jeff Carr, John
Cheung, Kim Nelson and Sybella Stanley. Paul Forman retired
from the Board on 31 December 2023, and Jeff Carr joined the
Board and Audit Committee on 1 April 2024. The Company
Secretary is the secretary to the Committee.
During the search for the new Board Chair, Warren Tucker acted
as Interim Chair, and during this time maintained his position as
Chair of the Audit Committee. While this resulted in a period of
non-compliance with Provision 24 of the Code, the Board
considered this was justified.
The Code stipulates that:
• the Committee, as a whole, shall have competence relevant to
the sector in which the Company operates. The Committee
considered that it does, as a whole, have extensive experience
of global manufacturing and supply organisations, and of
business-to-business groups, experience of
commercialisation of innovation pipelines and a wealth of
knowledge and understanding of the London investment
community and governance matters. It continues to strengthen
the competencies of its members through deep dives and
updates on relevant matters.
• at least one Committee member should have recent and
relevant financial experience. Warren Tucker meets this
requirement. Warren was Chief Financial Officer of Cobham
plc for a decade until 2013 and is a chartered accountant. He
also served as an independent non-executive director on a
FTSE 100 audit committee from 2010 to 2020. From 1 April
2024, Jeff Carr also meets this requirement as a chartered
accountant. He is the Chair of a FTSE 100 audit committee, and
for four years until March 2024 was the Chief Financial Officer
of Reckitt Benckiser Group plc.
Meetings during the year
Meetings are generally scheduled in line with key times in the
Group’s financial reporting calendar. The Committee held five
scheduled meetings during the year. Attendance during the
year is set out on page 89. The Committee has also met once
since the end of the financial year and prior to the signing of this
Annual Report.
The Chief Financial Officer, Head of Internal Audit, Group Finance
Controller, EVP General Counsel and representatives of the
external auditor are invited to, and attend, all relevant parts of
each meeting. The Board Chair and Chief Executive are also
invited to, and attend, each Committee meeting. In addition,
senior finance and operational leaders attend and present to the
Committee as needed, depending on the issues being discussed.
The Committee meets privately with each of the Chief Financial
Officer, the Head of Internal Audit, the Chief Executive, and the
Company’s external auditor individually to ensure the effective
flow of material information between the Committee and
management. The Committee also meets without management
present at the end of every meeting.
Effectiveness
The Committee carried out an internally facilitated review of
its effectiveness and sought feedback from its Committee
members, members of senior management and the external
auditor. The output was discussed by the Committee and
concluded that the Committee continued to operate effectively
in the year.
Work undertaken during the year
The Committee maintains a rolling calendar of items for
consideration at each meeting and reviews and updates it
regularly. As well as the work already referred to, the Committee
maintained its focus on four main areas: financial reporting;
oversight of the external auditor; oversight of the internal audit
function; and internal control and risk management. During this
financial year, the Committee learnt that Internal Audit had carried
out a comprehensive risk assessment to the control environment.
The Committee received a deep dive presentation from the
Group’s IT leadership on cyber security and controls, and
enterprise risk management within the Group, and a further deep
dive from an external expert and internal teams on the role of the
Audit Committee in sustainability reporting. An additional deep
dive was undertaken on the digitisation and optimisation agenda
within the Finance function.
Financial reporting
At each of its meetings, the Committee reviewed and
constructively challenged the accounting methodologies,
judgements and disclosures set out in the papers prepared
by management and determined, with input from EY, the
appropriateness of these. The significant issues considered
by the Committee in relation to this year’s financial statements
are listed on page 104. Papers on the Group’s existing and
emerging litigation risks were also considered over the year.
103
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Audit Committee Report continued
Significant matters relating to the financial statements considered by the Committee
Area Background Committee’s activities and conclusion
Exceptional items We exclude from certain of our alternative performance
measures exceptional items which are material in amount
and that are outside the normal course of business or relate
to events which do not frequently recur. Therefore, these
merit separate disclosure in the financial statements to
provide a better understanding of the Group’s underlying
financial performance.
The Committee constructively challenged the judgement of management regarding the classification of exceptional items.
The Committee also considered the appropriateness of the associated disclosures and concluded that both the judgements made,
and the disclosures proposed were reasonable.
Taxati on We operate and pay taxes in multiple jurisdictions, which
requires interpretation of complex tax law. As such, we
make provision for potential tax exposures to local tax
authorities and reassess these as necessary at the half year
and year end. Our assessment is underpinned by a range of
judgements from tax professionals and external advisors.
The Committee reviewed the key judgements made in estimating the Group’s tax charge along with the key disclosures, set out on
page 37 and in Note 11. The Committee was satisfied that the judgements made in estimating the Group’s tax charge were reasonable,
and that the disclosures were appropriate in Note 2.
The Committee considered and challenged the appropriateness of tax provisions at 31 March 2024, including changes in provisions
during the year, as well as the Group’s associated tax risks. The Committee also considered the composition of the Group’s deferred
tax balances and recognition judgements.
Integration of new
acquisitions
In the previous financial year, we acquired the Quantum
Hi-Tech and Nutriati businesses.
The Committee continued to monitor the implementation of Tate & Lyle’s controls, processes and ethics and compliance programme
into new businesses acquired by the Group.
Impairment reviews We test all goodwill for impairment annually and additionally
as required test all assets where there has been an indicator
of potential impairment.
The Committee reviewed and challenged the annual goodwill impairment assessments and considered the appropriateness of
management’s assumptions.
Management concluded that there was appropriate headroom in its goodwill impairment reviews and, accordingly, no impairments
were required. Impairment reviews were also undertaken on other assets and concluded that any impairments recorded were
appropriate. The Committee agreed with these conclusions.
The disclosure is set out in Note 19.
2024 UK Corporate
Governance Code
The FRC published the new Corporate Governance Code,
which will require reporting from our 2027 full-year
accounts.
The Committee received reports and a deep dive on the new UK Corporate Governance Code, and the Company’s readiness for the
changes. The Committee will continue to oversee the processes being implemented in advance of the reporting for the year ending
31 March 2027.
104
Governance
Tate & Lyle PLC Annual Report 2024
Audit Committee Report continued
Focus areas for the Audit Committee in the
2025 financial year
In addition to the recurring matters on the Committee’s rolling
calendar, the Committee will focus on (i) assurance over Group
priorities and projects, and strategic changes; (ii) continued
enhancements to the risk and controls matrix; and (iii) talent
management and succession planning in the Finance function.
The Committee will continue to carry out deep dives into key
areas of focus, both at Group functional level and at a regional
level, on a rotational basis. In addition, the Committee will
continue to review the effectiveness of controls which will operate
in relation to certain aspects of the long-term agreements
between Tate & Lyle and Primient. Members of the Audit
Committee look forward to visiting a number of our plants and
sites, including our Collaboration and Innovation Centre in
Hoffman Estates, US, as part of the Board’s overseas visit later
in the year.
External auditor
As part of the reporting of the half-year and full-year results
statements, EY reported to the Committee on its assessment of
the Group’s accounting judgements and estimates and its control
environment. EY did not report any significant deficiencies in
controls nor did it disagree with any of the Group’s accounting
judgements and estimates. The Chair of the Committee meets
with EY prior to each meeting and on a regular basis outside the
meeting cycle.
Safeguarding the auditor’s independence
The independence of the external auditor is essential to the
provision of an objective opinion on the true and fair view
presented in the financial statements. Auditor independence
and objectivity are safeguarded by several control measures,
including limiting the nature and value of non-audit services
performed by the external auditor.
The Committee operates a policy to safeguard the objectivity
and independence of the external auditor. This policy sets out
certain disclosure requirements by the external auditor to the
Committee, restrictions on the employment of the external
auditor’s former employees, and partner rotation.
During the year, the Committee reviewed the operation and
results of this policy and confirmed that, in its opinion, the external
auditor remained independent.
Provision of non-audit services
The policy also sets out the circumstances in which the external
auditor may be permitted to undertake non-audit services and
the services which are not permitted under any circumstances,
such as the provision of remuneration advice and internal audit
outsourcing.
At each meeting the external auditor reports any non-audit
services provided by the auditor and the fees incurred by the
Company. Under our policy on non-audit services, the Chief
Financial Officer has authority to approve permitted services up
to £10,000, with any amounts above that limit requiring approval
of the Committee Chair or the Committee itself. Any amounts
approved by the Chief Financial Officer are reported to the
Committee at its next meeting.
The total amount payable in respect of the Group audit and
audit of subsidiaries was £3.1 million. In addition, the fee for the
Group’s half-year review was £0.1 million, which is included as a
non-audit service in accordance with standard practice. Fees
paid in respect of non-audit services therefore comprised 3% of
the total fees paid to EY.
Audit quality
To maintain audit quality, the Committee reviews and challenges
the proposed external audit plan, including its scope and
materiality, before approval, to make sure that EY has identified
all key risks and developed robust audit procedures and
communication plans. Throughout the year, the Committee
looks at the quality of EY’s reports and considers its response
to accounting, financial control and audit issues as they arise.
The Committee also meets with EY regularly without
management present, providing an opportunity to raise any
matters in confidence and for open dialogue. This meeting also
gives the Committee the chance to monitor the performance
of the lead engagement partner both inside and outside
Committee meetings.
The Chair meets to review EY’s quality reporting and discussed
items that could impact Tate & Lyle, in particular the culture of
EY’s audit division.
Effectiveness of the external auditor
The effectiveness of the external auditor is assessed in
accordance with a process agreed by the Committee. As part of
the process, the auditor’s performance for the 2023 financial year
was reviewed against criteria set at the start of the audit, which
includes quality and experience of the audit team, audit planning
and adaptability to changes in business needs and the control
environment, providing objectivity and challenge, project
management, and reporting and communication. The
Committee also took into consideration the FRC’s most recent
guidance on evaluating audit quality.
The review sought feedback from management at both Group
and divisional levels most directly involved in the year-end audit,
and feedback was also sought from EY on the contribution from
our management team to an effective audit.
The Committee considered the feedback received together
with its wider knowledge and concluded that the external audit
process for the 2023 financial year was effective and that EY
provided independent challenge to management. Areas of focus
were identified for the 2024 financial year.
The Committee will formally assess EY’s performance in relation
to the 2024 audit following its completion.
Tenure
EY was appointed the Group’s external auditor at the Company’s
AGM in 2018 for the financial year ended 31 March 2019 following
a formal tender process. Jonathan Gill replaced Lloyd Brown as
the lead audit partner following the conclusion of Mr. Brown’s fifth
year as lead audit partner in the 2023 financial year. The 2024
financial year is Mr. Gill’s first year as lead audit partner. The
Committee recommended, and the Board intends to propose, the
reappointment of EY as the Company’s auditor for the 2025
financial year. It believes the independence and objectivity of the
external auditor and the effectiveness of the audit process are
safeguarded and remain strong.
The Committee considers that the Company has complied
with the Competition and Markets Authority’s Statutory Audit
Services for Large Companies Market Investigation (Mandatory
Use of Competitive Tender Processes and Audit Committee
Responsibilities) Order 2014 for the financial year under review.
There are no contractual obligations that restrict the Committee’s
choice of external auditor.
105
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Audit Committee Report continued
Internal audit
Internal Audit provides independent and objective assurance
to all levels of management up to the Board. Its responsibilities
include evaluating and reporting on the adequacy and
effectiveness of the systems of risk management and internal
controls operated by management. Management remains
responsible for identifying risks and for the design and operation
of controls to manage risk effectively.
The Internal Audit function is staffed by professionally qualified
and experienced individuals located in London, Poland and
Shanghai. They report to the Head of Internal Audit, who is based
in London, who in turn reports directly to the Chair of the Audit
Committee and the Chief Executive.
The Committee received, considered and approved the annual
internal audit plan, which was constructed using a risk-based
approach taking account of risk assessments, input from senior
management and previous audit findings. This year there was an
emphasis on the Long-Term Agreements with Primient, new
acquisitions (Quantum Hi-Tech and Chaodee Modified Starch)
and the risk and control culture. Internal Audit also carried out
commercial audits with a particular focus on end-to-end
processes, inventory management, and fraud risk assessment.
The audit plan is kept under review depending on operational
limitations and business requirements and any proposed
changes to the plan are discussed with, and approved by
the Committee.
Ongoing visibility of the internal control environment is provided
through regular internal audit reports to management and the
Committee. The reports are graded to reflect an overall
assessment of the control environment under review, and the
significance of any control weaknesses identified. Remedial
actions to address findings are identified and agreed with
management. The Committee receives a quarterly status report
from the Head of Internal Audit, detailing progress against the
agreed plan, key trends and findings. The Committee places high
emphasis on actions being taken as a result of internal audits and
reports from the Head of Internal Audit provide updates on the
status of actions and engagement with the local teams until the
actions are closed.
The Committee also carried out its annual review of the
effectiveness of the Internal Audit function. It was undertaken by
way of a questionnaire, and feedback was sought from members
of the Audit Committee, senior management, and the external
auditor. The Committee concluded that the function continues to
operate effectively.
Internal control and risk management
The Board is responsible for determining the nature and extent of
the principal risks it is willing to take in achieving the Group’s
strategic objectives and for maintaining sound risk management
and internal control systems. A formal process is in place which
aims to identify and evaluate risks including emerging risks and
how they are managed. Further details including the description
of principal risks are set out on pages 66 to 72. The objective of
the internal control system is to protect the Group’s assets and
reputation and to ensure the reliability of financial information for
both internal use and external publication. The systems of internal
control and risk management cannot eliminate the risk of failure
to achieve business objectives and can only provide reasonable,
not absolute, assurance against material misstatement or loss.
The Committee continued to receive and consider regular
reports from management and the Head of Internal Audit, on the
effectiveness of the Group’s internal controls and risk
management system as well as the external auditor on matters
identified during its statutory audit work.
During the year, the Head of Enterprise Risk presented to
the Audit Committee on risk strategy and risk process
enhancements made over the previous 12 months, and planned
improvements for the following 12-month period. They also
presented the risk management plan for calendar year 2024
for the Committee’s approval.
Internal control over financial reporting
The Group has specific internal mechanisms that govern the
financial reporting process and the disclosure controls and
procedures around the approval of the Group’s financial
statements. Twice a year, representatives from the business
certify that they have complied with the minimum control
standards and that their reported information provides a true
and fair view of the state of the financial affairs of their business
unit and its results for the period. The results of this financial
disclosure process are reported to the Audit Committee.
Annual review of the effectiveness of the
systems of internal control
The Board monitors the effectiveness of the Group’s systems
of internal control and risk management throughout the year.
Once a year, the Board, supported by the Audit Committee,
conducts its own review of the effectiveness of the systems of
risk management and internal control. As last year, the 2024
review was facilitated by the Internal Audit team, and covered the
period 1 April 2023 to the date of this Annual Report. The process
included a two-stage review to facilitate discussion, with the
Audit Committee discussing the results of the review at their
meetings in March and May 2024. The Board then discussed the
output at its meeting in May 2024.
The 2024 full-year review covered material financial, operational
and compliance controls, our values and behaviours, and the
risk management process. The review included an independent
analysis of the questionnaires and representation letters
completed by management to ensure that the responses from
management were consistent with the results of its work
during the year. The Committee reported to the Board that the
process for monitoring and reviewing internal control and risk
management processes is robust and appropriate for the size
and scale of the business. It was noted that no significant failing
or weakness had been identified and confirmed that it was
satisfied the systems and processes were functioning effectively.
The Group’s going concern and Viability Statement disclosures
are set out in the Strategic Report on pages 38 and 65
respectively.
106
Governance
Tate & Lyle PLC Annual Report 2024
Audit Committee Report continued
Robust year-end governance
processes are in place to support the
Board’s review of the Annual Report
which include:
• Ensuring that all of those involved in
the preparation of the Annual Report
have been briefed on the ‘fair,
balanced and understandable’
requirements;
• Internal verification by the Internal
Audit team of non-financial factual
statements, key performance
indicators and descriptions used
within the narrative;
• Regular engagement with, and
feedback from, senior management
on proposed content and changes;
• Feedback from external parties
(corporate reporting specialists,
remuneration advisors, external auditor)
to enhance the quality of our reporting;
• Review by the Audit Committee of the
governance processes employed to
provide assurance that the Annual
Report is fair, balanced and
understandable, including the
opportunity to challenge members of
management, Internal Audit and the
external auditor on the robustness of
those processes; and
• A process to ensure that unfavourable
outcomes have been duly highlighted.
The Board considers that, taken as a
whole, the Annual Report is fair,
balanced and understandable. The
Board further believes that the Annual
Report provides the necessary
information for shareholders to
adequately assess the Company’s
position and performance, business
model and strategy.
107
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Fair, balanced and understandable reporting
Directors’
Remuneration
Report:
Chair’s introduction
Our successful financial and strategic delivery
is the context for our remuneration outcomes
As described in the introductory statements in this Annual Report,
Tate & Lyle has delivered a year of strong financial performance,
despite a challenging economic environment. We continued to
set up Tate & Lyle for future growth through investment in
innovation and solution selling and the exit from low margin
business. We also announced a major expansion of growth
capacity for dietary fibres, and expanded the use of renewable
energy across our operations.
We navigated the challenge of softer consumer demand through
a careful balance of solution selling, a focus on higher margin
products, pricing, productivity savings, cost and cash discipline.
During the year, Group revenue was lower by 2%, adjusted
EBITDA grew by 7% and our adjusted earnings per share were
higher by 18%. Free cash flow was strong, £49 million higher at
£170 million with cash conversion at 85%. We also delivered
US$41 million of productivity savings, well ahead of our target
at the start of the year.
Overall, we performed well with good profit growth and excellent
cash generation.
Recognising our people
We are extremely grateful to our employees for their continued
commitment to serving our customers and delivering a set of
strong financial results.
Management and the Committee continue to be mindful of the
ongoing cost of living pressures for employees in many of our
major markets. As such, the April 2024 salary review process
was structured to provide the general workforce with market
competitive increases which in the UK and US was 4%. In
contrast, the Executive Directors and Executive Committee
members decided to decline a salary increase in light of the
continuing cost challenges facing the business.
We continue to recognise the majority of our employees with at
least six months’ service through some form of discretionary
reward or recognition for the year.
Incentive outcomes for the year
Based on the combined financial and non-financial context, the
Committee reflected on the variable pay outcomes for Executive
Directors and the broader management team, the outcomes of
which are summarised below:
• Annual bonus plan: the Chief Executive Officer bonus payout
at 52% of maximum (as described on page 118) reflects the
overall resilient performance of the Group in challenging
market conditions. Specifically, Group revenue performance
was below threshold, EBITDA was just below target and free
cash flow was above stretch. Non-financial objectives
reflected the progress on strategic achievements over the year.
• Performance Share Plan (PSP): awards made in 2021 will vest at
67% of maximum demonstrating the solid performance of
Tate & Lyle over the three-year performance period to 31 March
2024. As described on page 120 this outcome reflects: (i)
adjusted return on capital employed at 17.4% just above the
maximum of the target range; (ii) compound annual revenue
growth at 7.8% was also close to the maximum of the target
range (even after a downward adjustment by the Committee to
ensure outcomes were not unduly impacted by factors relating
to exceptional inflation pass-through); (iii) relative total
shareholder return growth was just below the median of the
peer group and therefore below the level required to vest; and
(iv) ESG performance across the metrics selected was overall
above target.
The Committee reflected on the
remuneration outcomes for the year in the
context of our overall performance and the
broader stakeholder experience.
Sybella Stanley
Chair of the
Remuneration
Committee
108
Governance
Tate & Lyle PLC Annual Report 2024
Directors’ Remuneration Report continued
The Committee reflected on the remuneration outcomes for
the year in the context of our overall performance and broader
shareholder experience. After making some downward
adjustments on the vesting outcomes of the PSP (see page 120),
the Committee believes that the outcomes presented in this
report are appropriate for the year.
Executive Director changes
As announced on 24 April 2024, Dawn Allen will be stepping
down from the Board and will cease employment in October
2024. The Committee recognises Dawn’s significant contribution
to the business during her tenure and in supporting a managed
succession.
Under the terms of her appointment, certain awards become
repayable on cessation of employment (as described on page
116) and all outstanding variable pay awards are similarly forfeited.
Accordingly, her remuneration for the year ended 31 March 2024
reflects only the fixed elements of her remuneration.
No Remuneration Policy changes in the
coming year
We have engaged proactively with shareholders over successive
years, and I am pleased to report that the level of shareholder
support for our last Remuneration Report and Remuneration
Policy remained strong with both resolutions receiving support
close to 96% in July 2023. As a result, we are not proposing any
changes at this time, with the current structure and metrics for
both the annual bonus and the Performance Share Plan
remaining unchanged for the year ahead, as described on
page 121.
The Committee believes these metrics remain appropriate
as they are the key drivers of growth and value creation for
our shareholders.
Concluding remarks
The Committee continues to believe that the current policy is
aligned appropriately with our global business and talent strategy
and continues to provide for a strong alignment between the
performance of Tate & Lyle and our Executive Directors’
remuneration.
In closing, I would like to thank my fellow members of the
Committee for their diligence throughout the year, our
shareholders for their continued engagement and support
and I hope you will join the Board in supporting our Directors’
Remuneration Report at the upcoming 2024 AGM.
Sybella Stanley
Chair of the Remuneration Committee
Performance headlines for the year ended
31 March 2024
Financial performance
• Adjusted EBITDA +7%: driven by mix management, pricing,
productivity and cost discipline
• Group revenue lower by 2%; 2% lower in Food & Beverage
Solutions reflecting lower volumes in the year
• Free cash flow £170 million, £49 million higher reflecting
cash conversion of 85%
Strategic progress
• Solutions new business wins by value up 3ppts to 21% of
pipeline
• Investment in innovation and solutions selling increased
by 5%
• Major investment in new capacity for dietary fibres at the
manufacturing facility in Slovakia
• Continued progress on our ESG goals particularly on
greenhouse gas emissions reduction and beneficially
using waste
109
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Directors’ Remuneration Report continued
Remuneration at a glance
Our remuneration philosophy is to offer
competitive packages that enable us to
recruit, develop and motivate excellent people
wherever they are in the world – specifically
people who are highly skilled at their jobs, who
believe in our purpose and will help us create
sustainable, long-term, profitable growth.
This philosophy applies to all our people.
Annual bonus metrics
Rewards achievement of annual performance
objectives:
• Target bonus is 75% of salary; Maximum is 150%
• Maximum cash bonus is 100% of salary
• Any award over 100% is paid in shares, deferred for two
years, and subject to claw back
Performance share plan awards vesting in 2024
Rewards achievement of long-term strategic
objectives against targets for awards made
in 2021
• Maximum award is 300% of salary
• Only 15% of the award vests at ‘threshold’
• A five-year timeframe applies: three-year performance
period plus a two-year post-vesting holding period
Metrics Threshold Target Stretch
Outcome
(% of max)
80% Financial metrics with equal weighting
Group revenue ($m) 0%
Group adjusted EBITDA ($m) 44%
Group adjusted operating
cash flow (£m)
100%
20% Non-financial
Strategic/non-financial
objectives, including
environmental and
purpose goals
67%
N/A
Overall outcome
for the year ended
31 March 2024
Metrics Threshold Stretch
Outcome
(% of max)
25% Adjusted Group
ROCE
100%
30% Adjusted Group
revenue CAGR
95%
25% Total
Shareholder Return
0%
20% ESG metrics:
Greenhouse gas
emissions, water and
waste reductions,
gender diversity
Overall outcome –
2021 award
2,1112019
407
380
175
2,225 2,270
67%
412 429
185
50%
195 234
100%
++++ =
Annual
bonus
Pension
contribution
BenefitsSalary
Performance
share plan
Tot al
remuneration
Fixed pay Performance-related pay
Shareholding requirements: CEO 400% of salary; CFO 300% of salary
Chief Executive
Chief Financial Officer
50% 52%
N/A
52% 100%
Chief Executive
Chief Financial Officer
13%
3%
Median
Set out in
2021
(see page 120)
Upper Quantile
Aspiration by
2024
(see page 120)
Below Median
15%
17%
7.8%
17.4%
8%
100%67%
67%
67%
Actual
See page 118 for USD to GBP conversion
What are the components of our executives’ remuneration?
How did we determine performance-related pay in the 2024 financial year?
110
Governance
Tate & Lyle PLC Annual Report 2024
Directors’ Remuneration Report continued
The tables below set out a single figure for the total remuneration
received by each Executive Director for the year ended 31 March
2024. The full table can be found on page 126.
Nick Hampton Chief Executive Officer
Fixed pay Base Pay 723
Pension 108
Benefits 17
Total Fixed 848
Variable pay
Annual Bonus 564
Share awards 1 173
Total Variable 1 737
Total 2 585
Dawn Allen Chief Financial Officer
Fixed pay Base Pay 482
Pension 72
Benefits 13
Total Fixed 567
Variable pay
Annual Bonus 0
Share awards 0
Total Variable 0
Tot al 567
Following the resignation of Dawn Allen on 24 April 2024 all outstanding variable pay
awards are forfeit.
Chief Financial Officer – Dawn Allen
100%
34% 44%22%
21% 26% 53%
Below
threshold
Target
Stretch
FY24
actual
FY24
actual
£848
£2,475
£4,102
£2,585
16% 21% 63%
Composition of remuneration £000s
Composition of remuneration £000s
100%
34% 22% 34%
21% 26% 53%
Below
threshold
Target
Stretch
£567
£1,652
£2,737
£567
100%
Chief Executive – Nick Hampton
Base and benefits
Annual Bonus
Performance Share Plan
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500
Remuneration outcomes vs policy scenarios for the year ended 31 March 2024
As a percentage of total remuneration
How did remuneration outcomes for the year compare with pay policy scenarios?
Executive directors’ Total Remuneration
111
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Committee effectiveness
During the year, the Board carried out an internally facilitated review of its effectiveness and that of
its committees. Feedback was sought from the Committee members, certain members of senior
management and the external advisor. The output was discussed by the Committee. This
concluded that the Committee continued to operate effectively throughout the year and confirmed
the appropriate areas of focus for the year ahead.
Committee advisor
The Committee appointed Deloitte LLP to act as external advisor following a review and competitive
tender process in 2012, with a change in lead advisor in 2022. As part of its annual processes, the
Committee considered and confirmed that advice received during the year from Deloitte LLP was
objective and independent. Deloitte LLP is a signatory to the Remuneration Consultants’ Code of
Conduct; this gives the Committee additional confidence that the advice received is objective and
independent of conflicts of interest. Fees charged by Deloitte LLP for the provision of remuneration
advice to the Committee amounted to £41,000 for the year ended 31 March 2024, with fees charged
on a time incurred basis. During the year ended 31 March 2024, Deloitte LLP also provided unrelated
services to the Group in respect of corporate finance, consulting, tax and compliance.
Annual Report on Remuneration
Preparation of this Report
This Report has been prepared in accordance with the requirements of the Companies Act 2006
(the Act) and Schedule 8 to the Large and Medium-sized Companies and Groups (Accounts and
Reports) Regulations 2008, the Listing Rules of the UK Listing Authority and the 2018 UK Corporate
Governance Code. Ernst & Young LLP have audited such content as required by the Act (the
information marked as ‘(audited)’).
The Remuneration Committee
Committee membership and meetings during the year
The Remuneration Committee comprised independent non-executive directors during the year
chaired by Sybella Stanley. Membership and attendance during the year is set out on page 89.
The Company Secretary serves as secretary to the Committee.
The Chair of the Board, the Chief Executive, the Chief Human Resources Officer, and the VP, Head of
Total Rewards may be invited to attend meetings to assist the Committee, although none is present
or involved when his or her own remuneration is discussed.
The Committee’s external advisor attends each meeting to provide independent advice, and also
provides regular updates to the Committee on relevant corporate governance and market-related
developments, to ensure that the Committee’s decisions take Group strategy and the needs of the
business into account, while reflecting investor and governance expectations.
Main responsibilities of the Remuneration Committee
The Committee has a formal calendar of items for consideration. The main responsibilities of the
Committee include:
• Assessing the appropriateness of executive
remuneration in the context of the Group’s
strategy and priorities as well as overall
competitiveness, informed by data from
independent, external sources
• Setting the detailed remuneration of the
Executive Directors, designated members
of senior management, and the Chair of the
Board (in consultation with the Chief
Executive), including salary or fees, annual
bonus, long-term incentives, and
contractual terms
•
Setting performance targets for awards
made to senior executives under the annual
bonus plan and the long-term incentive
plan, and reviewing performance outcomes
• Reviewing the broader operation of the
annual bonus and long-term incentive plan,
including participation and overall share
award levels
•
R
eviewing workforce remuneration policies
and engagement in accordance with the
2018 UK Corporate Governance Code
•
Reviewing its own effectiveness each year
The Committee’s terms of reference, which are reviewed annually, are available on the Company’s
website, www.tateandlyle.com.
Directors’ Remuneration Report continued
112
Governance
Tate & Lyle PLC Annual Report 2024
Remuneration Policy
Summary of the Directors’ Remuneration Policy
Executive Directors’ remuneration consists of base salary, annual bonus, long-term incentives,
share awards, retirement and other benefits as summarised in the ‘at a glance’ section on pages 110
and 111. Each component has a clear purpose, and the variable elements are driven by achievement
against relevant financial and non-financial performance indicators which have a clear link to the
Company’s strategy and purpose. A strong alignment with shareholders’ interests is maintained
through a weighting of the package towards performance-based reward as well as significant
personal shareholding requirements imposed on each Executive Director. Safety and broader
environmental and corporate responsibility matters are specific factors that the Committee may
factor into decisions on pay and annual incentive plan outcomes. Malus and claw back provisions
apply to incentive awards following release.
Non-Executive Directors receive fees relating to their Board and Committee responsibilities, and do
not receive additional benefits or participate in incentive arrangements.
The Directors’ Remuneration Policy (Policy) is published on pages 124 to 129 of our Annual Report
2023, and is available on the Company’s website (www.tateandlyle.com/investors/annual-reports).
The Directors’ Remuneration Policy (the Policy) was approved by shareholders at the AGM on
27 July 2023 (with 96% of votes cast to support the resolution), as described on page 114.
The Committee retains discretion on specific aspects of the Policy and implementation, along with
an overriding discretion to determine bonus outcomes and judge the level at which share awards
vest, to ensure that payments are consistent with the underlying financial health and performance
of the business.
The Committee may make minor changes to the Policy without seeking shareholder approval, for
example, to benefit the administration arrangements, or to take account of changes in legislation.
Any such changes would be disclosed in the relevant Annual Report.
Service contracts
The Group’s policy regarding Executive Directors’ service contracts and appointment terms is
to take account of market practice, and to ensure that provisions in relation to notice periods or
termination payments are not excessive, as well as to ensure that contracts provide appropriate
protection for the Group, for example, in relation to restrictions on competition, solicitation of
customers or employees, and the protection of intellectual property. Executive Directors are
employed under service contracts that provide for six months’ notice from the executive and
12 months’ notice from the Company.
The Chair and non-executive directors have letters of appointment and do not have service
contracts or notice periods. Under the terms of their appointment, they are usually expected to
serve on the Board for between three and nine years, subject to their re-election by shareholders.
The Chair and non-executive directors receive a fee for their services, and do not participate in the
Group’s incentive or pension schemes, do not receive any other benefits, and have no right to
compensation if their appointment is terminated.
Service contracts for Executive Directors and letters of appointment for the Chair and non-
executive directors are available for inspection at the Company’s registered office.
Remuneration framework and key principles
The Group’s remuneration strategy and principles apply consistently to employees, managers
and executives.
• Our approach is designed to be fair, equitable, and globally consistent, recognising that we
recruit talented individuals and operate in an international market
• Base pay and benefits are referenced to the comparative local market, taking account of
company size and operations
• Assessments of performance and potential provide meaningful opportunities for career and
pay progression, based on an individual’s skills and contribution over time
• Individuals in key roles that can drive annual and longer-term performance may be selected to
participate in our sales incentive plan, or the annual bonus plan, and/or the Performance Share
Plan, to encourage the achievement of genuinely stretching short-term and long-term
objectives
• All aspects of remuneration are designed to encourage a focus on long-term, sustained
performance and risk management. Outcomes must be achieved in a way that is consistent
with the Group’s values and Code of Ethics, and that fosters sustainable, profitable growth
aligned with our purpose
• Alignment with shareholders’ long-term interests is carefully preserved by linking senior
executive pay to performance; effective governance around remuneration decisions; setting
targets that challenge management to drive high performance; the adoption of shareholding
guidelines at senior executive levels; and appropriate malus and claw back provisions
Directors’ Remuneration Report continued
113
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Statement of shareholder voting
The Remuneration Policy was approved by shareholders at the AGM on 27 July 2023 alongside
the Annual Report on Remuneration. The following voting outcomes were disclosed after the
relevant meeting:
Resolution
Total for
(number of
votes) % of vote
Total against
(number of
votes) % of vote
Withheld
1
(number of
votes)
Directors’ Remuneration Policy –
27 July 2023 282,656,823 96.08% 11,523,854 3.92% 1,621,454
Annual Directors’ Remuneration Report –
27 July 2023 283,826,297 95.97% 11,910,744 4.03% 65,090
1 Votes withheld are not counted in the calculation of the proportion of votes for or against a resolution.
Resolution to approve the Annual Report on Remuneration at the 2024 AGM
A resolution to approve this Annual Report on Remuneration will be proposed at the AGM on
25 July 2024.
Overview of Executive Director remuneration framework for the year ended 31 March 2024 and
for the year ahead
The table below summarises the operation of our current remuneration arrangements in accordance
with the Policy approved by shareholders.
Base salary and employment benefits
• Market competitive salary and benefits to attract the required calibre of executives
• Benefits include health insurance, car benefit and defined contribution retirement benefits
• Executive Director retirement benefit levels are aligned to the rate available to the wider UK workforce
Annual bonus
For the year ended 31 March 2024
80% financial which is based equally across
• Group revenue
• Group adjusted EBITDA
• Group adjusted operating cash flow
20% non-financial business strategy objectives
Rewards achievement against annual performance
objectives:
• Target bonus is 75% of salary; maximum cash bonus is
100% of salary
• Maximum opportunity is 150% of salary
• Any award over 100% is paid in shares, deferred for two
years, subject to claw back
• 80% of the bonus is calculated by reference to financial
performance conditions
• 20% of the bonus is linked to non-financial strategic
objectives to create additional value over time
For the year ahead metrics will remain as current to align with
our key financial performance indicators and growth
ambition.
Performance share plan
Awards made in 2021:
• 25% Group adjusted ROCE
• 30% Group adjusted organic Revenue 3-year
CAGR
• 25% Relative Total Shareholder Return (TSR)
• 20% ESG Metrics: Greenhouse gas emissions,
waste reduction, water, gender diversity
Supports the Group’s strategy to create shareholder value by
incentivising sustained profit growth and capital efficiency,
continued strategic progress, and to motivate and retain
senior talent:
• Maximum award is 300% of salary with 15% of the award
vesting at ‘threshold’
• Awards are subject to a three-year performance period
plus a two-year post-vesting holding period – five-year
total.
Shareholding requirements – to be achieved within five years of appointment
•
Chief Executive – 400% of salary
• Chief Financial Officer – 300% of salary
• A post-employment shareholding requirement also applies:
for a period of two years following cessation, an executive
director will be required to maintain a shareholding in
keeping with the guideline prevailing at the time of their
departure, or their actual holding on departure (if lower).
Malus and claw back provisions
• Ongoing conditions apply for a period of two years after a
bonus award or vesting of PSP awards.
Key: Number of years: Performance period Deferral/holding period Ongoing requirements
Directors’ Remuneration Report continued
114
Governance
Tate & Lyle PLC Annual Report 2024
Context for executive remuneration
We operate in an international context
Although Tate & Lyle is UK-listed and headquartered in London, UK, about 96% of its revenue
1
is
generated outside the UK and 94% of its global workforce is located outside the UK. Accordingly,
it is important that our remuneration arrangements are and remain competitive in that
international context.
1 Geographic revenue as per Note 5 to the accounts.
Total shareholder return and Chief Executive’s pay
The chart illustrates cumulative total shareholder return (TSR) performance of the Company in
comparison with the FTSE 100 and FTSE 250 indices, as they represent a broad equity market with
constituents comparable in size and complexity to the Company. The chart shows the value of
£100 invested in each Index and the Company in the 10 years starting from 1 April 2014.
80
120
100
140
160
180
1 April
2014
31 March
2017
31 March
2015
31 March
2016
31 March
2018
31 March
2019
31 March
2020
31 March
2021
31 March
2022
31 March
2023
31 March
2024
Tate & Lyle PLC (Ordinary Shares) FTSE 100 FTSE 250
31 March
2015
31 March
2016
31 March
2017
31 March
2018
31 March
2019
31 March
2020
31 March
2021
31 March
2022
31 March
2023
31 March
2024
Chief Executive’s
1
total remuneration (£000s per single figure table)
Nick Hampton n/a n/a n/a n/a 3 045 2 499 3 246 2 409 3 367 2 585
Javed Ahmed 996 2 139 3 239 3 672 n/a n/a n/a n/a n/a n/a
Annual bonus
(% of max) 0% 77% 80% 72% 53% 78% 90% 67% 96% 52%
PSP vesting (% of max) 0.0% 10.9% 50.0% 100% 75.0% 62.5% 57.3% 42.0% 69.5% 67%
1 Nick Hampton has served as Chief Executive since his appointment on 1 April 2018. Javed Ahmed served as Chief Executive from his
appointment on 1 October 2009 until 1 April 2018.
Comparison of movement in Director and broader employee remuneration
The table below shows the percentage change in remuneration of Directors and the broader
employee population over the four-year period ended 31 March 2024.
2024 vs 2023 2023 vs 2022 2022 vs 2021 2021 vs 2020
Salary/
fees Benefits
4
Bonus
Salary/
fees Benefits
4
Bonus
Salary/
fees Benefits
4
Bonus
Salary/
fees Benefits
4
Bonus
Average
employee
3
4.3% -5% -48% 5%
6
-6% 28% 3% -1.2% -14% 0-3% -8% 18%
Executive
Directors
1
Nick Hampton 1.5% -3% -45% 4% 3% 50% 3% -20% -24% 0% 0% 15%
Dawn Allen 1% 18% -100% n/a n/a n/a ––– –––
Non-Executive
Directors
2
Dr Gerry Murphy 1.5% n/a n/a 0% n/a n/a 0% n/a n/a 0% n/a n/a
John Cheung 1.5% n/a n/a 0% n/a n/a 0% n/a n/a –––
Paul Forman 1.5% n/a n/a 0% n/a n/a 0% n/a n/a 5% n/a n/a
Lars Frederiksen 1.5% n/a n/a 0% n/a n/a 0% n/a n/a 0% n/a n/a
Kimberly Nelson
5
6% n/a n/a 0% n/a n/a 0% n/a n/a 0% n/a n/a
Sybella Stanley
6
3% n/a n/a 6% n/a n/a 13% n/a n/a 0% n/a n/a
Warren Tucker
7
113% n/a n/a 0% n/a n/a 0% n/a n/a 8% n/a n/a
Patrícia Corsi 1.5% n/a n/a 0% n/a n/a 0% n/a n/a –––
Dr Isabelle Esser 1.5% n/a n/a 0% n/a n/a ––– –––
David Hearn
8
––– –––––– –––
1 Figures for Directors are consistent with the values shown in the single figure table on page 126.
2 The Chair and non-executive directors do not receive benefits nor participate in bonus arrangements.
3 The salary review process was run as normal, with average UK employee salaries increasing by 4.3% from 1 April 2024.
4 Benefits changes reflect the cost of provision under insurance and other third-party contracts, and employee elections. Benefit polices
in the period are unchanged.
5 Fee increase for Kimberly Nelson reflects the move to Senior Independent Director from 1 January 2024.
6 Fee increase for Sybella Stanley reflects the agreed increase in non-executive director fees and supplement for Remuneration
Committee Chair.
7 Fee increase for Warren Tucker reflects his role as interim Chair from 1 September 2023 to 31 December 2023.
8 David Hearn was appointed as Chair from 1 January 2024.
Relative importance of spend on pay
Year ended
31 March 2024
Year ended
31 March 2023 % Change
Remuneration paid to or receivable by employees £273m £290m -6%
Distributions to shareholders (by way of dividend and
purchase of ordinary shares) £76m £570m
1
-87%
1 Year ended 31 March 2023, including the special dividend payment of £497 million made to ordinary shareholders (of £1.07 per ordinary
share in the capital of Tate & Lyle) in May 2022.
The year-on-year variance in employee remuneration is attributable to factors including foreign
exchange rate movements (reflecting our significant US employee base) as well as variable pay
arrangements driven by Group financial performance.
Directors’ Remuneration Report continued
115
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
UK gender pay ratio
Our two employing businesses in the UK each employ fewer than the 250-employee threshold for
reporting gender pay statistics. Nevertheless, Tate & Lyle continues to report on a voluntary basis as
set out on page 47. The Committee supports gender pay reports and the actions taken in the
business to drive gender balance, supporting a culture of inclusion which is representative of our
communities. Tate & Lyle is committed to providing opportunities based on capability and talent,
irrespective of gender, ethnicity, or culture.
CEO pay ratio vs UK employees
One of the key principles of our people strategy is to provide competitive remuneration for each role
in a way that enables the Group to recruit, retain and motivate the required calibre of employees to
deliver strong and sustainable performance.
In the table below, total compensation has been calculated for all UK employees individually per the
relevant year in a consistent manner for comparison with the CEO ‘single figure’ total compensation
figure in the table on page 126. (This approach is known as ‘Method A’ in the reporting regulations
and was selected because it provides greater consistency in comparison.)
Yea r
Lower
Quartile Median
Upper
Quartile
2024 – pay ratio (total compensation) 66x 29x 17x
2024 – representative employee salary £33,008 £67.925 £96,641
2024 – representative employee total compensation £39,051 £88,839 £149,770
2023 – pay ratio (total compensation) 75x 37x 22x
2022 – pay ratio (total compensation) 49x 25x 14x
2021 – pay ratio (total compensation) 71x 37x 21x
2020 – pay ratio (total compensation) 55x 27x 13x
2019 – pay ratio (total compensation) 74x 39x 20x
The Committee notes that the median pay ratio figure of 29x has decreased year on year. Changes
in the overall ratio are driven primarily by performance-related (incentive) outcomes, the value of
which is generally greater for Executive Directors than employees. The ratio this year reflects the
overall decline in CEO remuneration with variable, performance-related pay outcomes at a lower
level than the prior year. The Committee notes that the ‘median’ employee in the UK is not a
participant in the long-term performance share plan. As such, the ratio remains sensitive to financial
performance and consequently to incentive plan outcomes and share price performance (which
may lead to greater variability in the total pay for the CEO pay figure from year to year as compared
with the broader employee group).
Consideration of shareholder views
The Chair of the Remuneration Committee engages with our major institutional shareholders
when considering any changes on remuneration topics, alongside the Board’s shareholder
engagement programme.
The Committee also receives regular updates on investors’ views and corporate governance
matters. These lines of communication ensure that emerging best practice principles are factored
into the Committee’s decision making during the year.
Statement of consideration of employment conditions in the Group
The principles on which we base remuneration decisions for executives (as described on page 113)
are consistent with those on which we base remuneration decisions for all employees. In particular,
the Committee takes into account the general pay and employment conditions of other employees
of the Group when making decisions on executive directors’ remuneration. This includes
considering the levels of base salary increase for employees below executive level, and ensuring
that the same principles apply in setting performance targets for executives’ incentives as for other
relevant employees of the Group.
The Committee also reviews information on bonus payments and share awards made to the broader
management of the Group when determining awards and outcomes at Executive Director level.
The Committee considers workforce remuneration matters during the year, and has taken steps to
engage with employees on the matters covered by the Code. The Committee did not consult
directly with employees on directors’ remuneration; however, it considered the Executive Directors
remuneration outcomes with an understanding and clear oversight of remuneration for the wider
workforce. The Chair and other members of the Board enjoy engagement opportunities from time
to time with employees across the Company, where employees are provided updates on the
Company and its performance and are encouraged to ask questions about the Company, which
may include questions on management and remuneration.
Management and the Committee have been mindful of the prevailing inflationary and cost-of-living
challenges in many of the countries in which we operate when reviewing the level of salary
increases which took effect from 1 April 2024. As referenced in the introductory statement to this
report, the general workforce was awarded market competitive increases during the salary review
process. In contrast, the Executive Directors and Executive Committee members declined a salary
increase in recognition of the continuing cost challenges facing the business.
Executive Director changes
Dawn Allen – resigned as Chief Financial Officer
Dawn Allen will be stepping down from the Board and ceasing employment with Tate & Lyle in
October 2024. Under the terms of her appointment, specified payments and vested awards are
forfeited and become repayable in full on cessation of employment prior to the third anniversary of
appointment. The relevant items in this case are Restricted Stock Awards made on appointment
and vested in June 2023, the full value of which will be repaid on cessation of employment.
Similarly, other unvested incentives: the Restricted Stock Award made on appointment which is due
to vest in June 2024; PSP awards made in 2022 and 2023, deferred bonus of £179,492 in relation to
the year ended 31 March 2023, and any bonus that would have been earned in respect of the year
ended 31 March 2024, and the year ending 31 March 2025 are forfeited.
Directors’ Remuneration Report continued
116
Governance
Tate & Lyle PLC Annual Report 2024
Fixed elements of Directors’ pay
Executive Directors’ salaries
The Remuneration Committee reviews Executive Director salaries at the start of each financial year.
As described on page 116 Nick Hampton and Dawn Allen will maintain their current salary as at
1 April 2024 of £723,086 and £482,125, respectively.
Chair’s and Non-Executive Directors’ fees
Fees are reviewed annually, in accordance with our stated Policy, by the Committee (excluding the
Board Chair) in respect of the Board Chair’s fee, and by the Board Chair and the Executive Directors
in respect of other non-executive directors’ fees.
Similar to the Executive Directors, no increases were awarded on 1 April 2024. Fees, based on
individual director responsibilities, are shown in the table below.
Fees (per annum) as at 1 April 2024 (£) 2024 2023 % Change
Basic fees
Board Chair
355 000 355 000 0%
Non-executive director
69 000 69 000 0%
Senior Independent Director
80 000 80 000 0%
Supplemental fees
Chair of Audit Committee 18 500 18 500 0%
Chair of Remuneration Committee
15 000 15 000 0%
Annual bonus
The structure of the annual bonus for Executive Directors is described below. 80% of the bonus is
linked to financial performance conditions and 20% linked to the achievement of specific ‘business
strategic’ or non-financial objectives, to capture the actions and performance necessary to create
additional value over time, including environmental and purpose goals.
The strategic and non-financial objectives established by the Committee at the start of the year,
reflect the Group’s priorities for the year ahead. Achievements against those objectives are
reviewed by the Committee at the end of the year to determine a bonus outcome.
In determining the final bonus outcomes, the Committee has due regard to the shareholder and
broader stakeholder experience in addition to the formulaic outcomes for each metric.
Opportunity
(% of salary)
Strategic objectives
(20% of total)
Financial metrics (80% of total):
Threshold: 20%
Target: 75%
Maximum: 150%
Group revenue
(26.6% of total)
Aligned to strategic
and operational
priorities
Group adjusted
EBITDA
(26.6% of total)
Group adjusted
cash flow
(26.6% of total)
++
+
A minimum level of profit must be achieved before a bonus can be earned for other metrics. Awards are
subject to Remuneration Committee discretion, taking into account underlying business performance, and
environmental, health and safety performance.
Note: Bonus outcomes are assessed at budgeted exchange rates for comparability.
Performance may therefore differ from the corresponding metrics included in the financial statements.
Adjusted operating cash flow is equivalent to free cash flow before the impact of retirement cash contributions, net interest and tax paid,
Deferral into shares
Bonus awards up to 100% of base salary are paid in cash. Any excess above 100% of base salary is
paid in the form of deferred shares. The shares are released after two years subject to the Executive
Director remaining in service with the Group and carry the right to receive a payment in lieu of
dividends between grant and release.
Malus and claw back provisions
Both the cash and share elements are subject to malus and claw back provisions for a period of
24 months following the award. This means that they may be recouped in whole or in part, at the
discretion of the Committee, in the exceptional event that results are found to have been mis-stated
or if an Executive Director commits an act of gross misconduct or circumstances leading to
corporate failure.
Bonus arrangements for the year ahead
This bonus structure will be retained for the year ahead, with 80% weighted to financial performance,
reflecting the combination of (i) top line growth, (ii) profit delivery, and (iii) cash performance,
alongside a 20% component linked to strategic progress. Similarly, the headline financial KPIs will be
maintained for the year ahead as these continue to align to the financial metrics in the investment
case and growth ambition set out as part of our Capital Markets Event on 8 February 2023. The
Committee believes these metrics are appropriate as they are key drivers of growth and value
creation, and are aligned with management’s ability to drive operational performance. The Board
considers that bonus targets for the year ahead are commercially sensitive because they may
reveal information about the business plan that may damage our competitive advantage, and
accordingly does not disclose these on a prospective basis. However, we continue our practice of
reporting targets in full, and the level of performance achieved, for each year just ended.
Directors’ Remuneration Report continued
117
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Annual bonus for the year ended 31 March 2024 (audited)
The table below provides further information on each metric, the targets set at the start of the year and actual performance for the year.
Target range
Actual performance
In the year ended
31 March 2024
Bonus outcome
Bonus metric Link to strategy Weighting Threshold Target Stretch % of Max % of Salary
80% Financial metrics with equal weighting
• Group revenue
1
Captures ‘top line’ value-based performance 26.6% $2,111m $2,225m $2,270m $2,019m 0% 0%
• Group adjusted EBITDA
2
Measures the underlying profit generated by the total
business and whether management is converting growth
into profit effectively
26.6% $380m $412m $429m $407m 44% 18%
• Group adjusted operating cash flow
3
Provides a focus on managing working capital and
converting profit into cash effectively
26.6% £175m £185m £195m £234m 100% 40%
20 % Non-financial personal and strategic performance Measures non-financial performance key to achieving
corporate goals
20% See page 119 for details Chief Executive
Chief Financial Officer
67%
0%
20%
0%
Financial underpin The Committee also considers the Group’s safety and overall financial performance to ensure that the results across all metrics, financial and strategic, are a fair
reflection of the underlying strength and performance of the Group.
Based on these performance outcomes, annual bonus awards to Executive Directors for the year ended 31 March 2024 have been determined as follows::
% of Max % of Salary
Nick Hampton Chief Executive 52% 78%
Dawn Allen
4
Chief Financial Officer 0% 0%
Any bonus up to 100% of base salary is paid in cash and any balance is paid in the form of deferred shares.
1 Group revenue of £1,647 million converted into USD using average actual exchange rates over the year.
2 Group EBITDA of £326 million reflects the revised definition of adjusted EBITDA (for definitions see Notes 1 and 4) to exclude other M&A costs of £2 million, converted into USD using average actual exchange rates over the year.
3 Adjusted operating cash flow of £234 million is equivalent to free cash flow before the impact of retirement cash contributions, net interest and tax paid which taking these into account becomes £170 million.
4 Dawn Allen will not receive any bonus in respect of the year ended 31 March 2024, following the announcement of her resignation on 24 April 2024.
Directors’ Remuneration Report continued
118
Governance
Tate & Lyle PLC Annual Report 2024
Strategic non-financial objectives
20% of each Executive Director’s bonus opportunity is linked to
performance against individual and business strategic measures.
Payment of this element of the bonus is subject to achievement
of a minimum profit hurdle (which has been achieved for the year).
Non-financial objectives are established through a process
involving the Nominations and Remuneration Committees at
the start of each year, reflecting corporate priorities, progress
against our growth-focused strategy, sustainability and broader
purpose goals.
Achievements against those objectives, including specific KPIs,
are reviewed by the Committee at the end of the financial year,
and a bonus outcome for this element is determined accordingly.
The Committee’s assessment of the bonus outcome and key
achievements against specific objectives for the year just ended
are shown in the table on this page. Business strategic objectives
such as M&A pipeline and customer relationships are often
commercially sensitive.
CEO: Financial year ended 31 March 2024 objectives and headline assessment
1. Further strengthen customer focus
•
Investment in innovation and solution selling increased by 5% including customer-facing capabilities such as sensory and open innovation
• Continued to deliver targeted programmes to develop new ways of working with customers to build stronger
solutions-based partnerships
• Revenue from solutions wins coming out of the new business pipeline increased by 3ppts to 21%
• Opened new Customer Innovation and Collaboration Centre in Jakarta, Indonesia
Assessment: Good progress building stronger solutions-based business with customers, and investing in customer-facing capabilities and
infrastructure to support long-term growth.
2. Accelerate growth through R&D, innovation and new capacity
•
Launched nine new products into the market in the year including TASTEVA SOL
®
, a patent-protected breakthrough in stevia technology
• New Products revenue increased by 13% on a like-for-like basis
• New Products revenue as a percentage of Food & Beverage Solutions revenue at 16%
• Expanded patent portfolio with 61 new patents granted in the year
• Major investment programme underway at corn wet mill in Boleráz, Slovakia, to establish new capacity for Non-GMO PROMITOR
®
Soluble Fibres
Assessment: Significant progress accelerating the focus on innovation and New Products revenue demonstrating positive momentum.
3. Set up the organisation for future growth
•
Developed digital transformation strategy and roadmap
• Installed new robotics system in Singapore lab to significantly enhance mouthfeel offering for customers and increase speed-to-market
• Continued to develop and implement regional platform strategies
• Continued to drive culture of productivity across the business and to instil cost discipline; US$41 million in productivity savings delivered in the year
Assessment: Technology roadmap has been well defined, and is starting to demonstrate benefits across the supply chain and in commercial-focused
areas.
4. Progress purpose and sustainability targets
•
Developed new, ambitious science-based targets for GHG emissions reduction on a 1.5C pathway
• 11% reduction in absolute Scope 1 and 2 greenhouse gas (GHG) emissions (from 2019 baseline)
• 20% reduction in absolute Scope 3 GHG emissions (from 2019 baseline), exceeding 2030 target seven years ahead of schedule
• 90% of waste beneficially used
• Sustainable agriculture programmes for corn and stevia delivering strong environmental improvements
• Maintained strong safety focus and culture, with the best safety performance in over six years
Assessment: Good progress against our purpose and sustainability targets including overseeing work towards the successful establishment of new
science-based targets on a 1.5°C pathway.
5. Build a more inclusive and ambitious culture
•
Percentage of women in management and leadership roles (over 500 positions) increased by 1 ppt to 45%
• Established regional and functional equity, diversity and inclusion (ED&I) action plans
• Continued to embed new behaviours to drive stronger culture of innovation and experimentation
Assessment: ED&I plans for local and functional groups agreed, and ED&I external commitments being progressed.
Overall outcome as a percentage of maximum: 67%
As Dawn Allen will not receive a bonus as per the terms of her resignation described on page 116, no objectives and headline
assessment are provided above.
Directors’ Remuneration Report continued
119
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Given the exceptional higher than typical price inflation over the performance period for the 2021
PSP, the Committee considered it appropriate to adjust the revenue growth outcome downwards
to neutralise its impact. As a result, the three-year annualised revenue growth over the period was
adjusted down from 10.1% to 7.8% per annum.
ESG targets
ESG metrics were introduced (with a 20% weighting) to our long-term awards with effect from 2021.
The four metrics selected were based on their relevance to our business model and their impact.
The targets against these metrics are consistent with the 2025 and 2030 and purpose commitments
we set out in 2020, as applicable to the continuing business following the separation from Primient
in 2022.
The targets shown below relate to the PSP awards made in 2021.
Independent external support was received in this area (from AECOM), including the assessment
of performance (which was independently verified by Arcadis, see page 53); with the approach to
be kept under review to ensure targets for future awards and associated performance periods
remain appropriate.
2021 PSP Award
Actual performance
In the year ended
31 March 2024
2
Sustainability metrics Baseline
1
Threshold Stretch Outcome
Performance
%
GHG emissions
Absolute reduction in Scope 1 and 2 CO
2
e
emissions
558,765 tonnes
CO
2
e
(6)% (12)% (11)% 21.5%
Waste
Beneficial use of waste
65% beneficial
use of waste
72% 79% 90% 25%
Water
Reduction in water use intensity
Aggregate Efficiency
Index 1.0
3
(3)% (6)% 4% 0%
Gender diversity
Women in leadership and management
roles
27% 40% 47% 45% 20.4%
Tota l 67%
1 ‘Baseline’ against which performance is assessed will update over time to reflect acquired businesses and changes to the operational
footprint.
2 All performance subject to variability, based on multiple factors (volume/product mix across plant network/geographic footprint).
3 We use the Aggregate Efficiency Index to measure water use intensity. The baseline for this index is 1.0.
Long-term incentive – Performance Share Plan
The Performance Share Plan (PSP) provides a share-based incentive to closely align Executive
Directors’ and senior executives’ interests with the strategy and with the interests of shareholders
over the long term.
Maximum award level
Awards to Executive Directors and other senior executives have been granted at the discretion of
the Committee, with flexibility to make awards of up to 300% of base salary taking into account
Group performance. Individual awards made in any year are considered by the Committee on a
case-by-case basis.
Vesting outcome for awards made in 2021
The table below summarises the achieved assessment of actual performance against the
conditions set for the award made in 2021.
Metrics for awards from 2021
(weighting)
Rationale for metric
(Link to investment case)
Target range
Threshold Stretch
Actual
performance
In the
year ended
31 March 2024
1
Vesting
Outcome
Compound annual organic
revenue growth (30%)
Key performance
metric to drive
long-term profitable
growth
3% 8% 7.8%
2
29%
Relative Total Shareholder
Return (25%)
3
External measure
of shareholder
value/return
‘Median’ ‘Upper
Quartile’
Below
Median
0%
Adjusted Group ROCE (25%) Drives disciplined and
efficient investment for
value-added returns
from the total business
13% 17% 17.4% 25%
Purpose and sustainability
metrics (20%):
• Reduction in greenhouse
gas emissions
• Beneficial use of waste
• Reduction in water use
intensity
• Gender diversity
Central to positioning
as a purpose-led
organisation e.g. aligned
to our commitment to
be net zero by 2050
Targets linked to
ESG and
sustainability
commitments
aligned with
pre-existing 2030
commitments
67% 13%
Tota l 67%
1 Targets for financial metrics are set, and performance is assessed at reported exchange rates.
2 Revenue growth performance has been adjusted down by the Committee from 10.1% to 7.8% to remove the impact of exceptional price
inflation over the performance period.
3 The TSR comparator group was comprised of the following businesses, chosen as they represent global peers and industry
participants that collectively provide an appropriate benchmark for performance: AAK (Sweden), Archer Daniels Midland (US), Balchem
(US), Christian Hansen (Denmark), Corbion (Netherlands), Croda (UK), Givaudan (Switzerland), DSM-Firmenich, Glanbia (Ireland), IFF
(US), Ingredion (US), Kerry (Ireland), Novozymes (Denmark), Sensient (US), Symrise (Germany). In selecting a comparator group, the
Committee noted that a number of more direct competitors are not publicly listed. DSM (Netherlands) was delisted in May 2023 when it
merged with Firmenich and became DSM-Firmenich which was added to the peer set, data from the date of merger 8 May 2023
(restated on DSM share price). Novozymes and Christian Hansen combined to form Novonesis on 29 January 2024. The combined
entity represents the continuation of Novozymes shares whilst Christian Hansen was de-listed and removed from the peer group.
Directors’ Remuneration Report continued
120
Governance
Tate & Lyle PLC Annual Report 2024
Performance underpin
Before any shares are released in relation to any award, the Committee must also be satisfied that
the level of vesting determined by performance against these targets is justified by the broader
underlying financial performance of the Group.
Recognising the importance of the dividend to our investors, the Committee retains a specific
discretion to reduce PSP vesting if dividends paid by the Group over the performance period do not
conform with our stated dividend policy.
Post-vesting holding period
Executive Directors are required to hold shares for a two-year period after the end of the three-year
performance period; with the combined total period at five years from grant. This holding period sits
alongside the existing personal shareholding requirements and claw back/malus provisions and
demonstrates a strong long-term alignment with shareholder interests.
Malus and claw back provisions
Awards made under the PSP are subject to malus and claw back provisions for a period following
the vesting date and extending to the fifth anniversary following the date of grant. During this
period, the Committee may determine that an award will lapse wholly or in part (or may require
that a participant shall repay up to 100% of the value of any award that has vested by virtue of
performance), in the event of circumstances including the following: material misstatement of
financial results; misconduct which justifies, or could justify, summary dismissal of the participant;
or if information emerges which would have affected the value of the original award that was granted
to a participant, or the level at which the performance conditions were judged to have been satisfied;
or in the event of circumstances leading to corporate failure.
Impact of capital events
In keeping with our Policy, the impact on the incentive plans arising from a merger or acquisition
or other material corporate activity is specifically considered by the Committee, which retains
the authority to vary the performance targets to ensure that these are neither easier nor more
demanding than the original targets. This principle remains important to allow the business to grow
through organic sales growth and returns, as well as value-added strategic M&A-related activity
over time.
Change of control
The Company’s share plans contain provisions relating to a change of control. Outstanding
awards would normally vest in full and become exercisable on a change of control, subject to
the satisfaction of any performance conditions assessed at that time, and, at the Committee’s
discretion, in proportion to the time served during the performance period.
Directors’ Remuneration Report continued
Arrangements for the year ahead
The same performance metrics and targets as adopted in 2023 are intended to apply for awards
made in the year ahead and will be kept under review ahead of the grant in any year to ensure they
remain appropriately stretching.
Metrics for awards
from 2021 (weighting)
Rationale for metric
(Link to investment case)
Target range
(Threshold-Stretch)
Compound annual organic
revenue growth (30%)
Key performance metric to drive
long-term profitable growth
3% – 8% p.a. three-year compound
annual growth over the three-year
performance period
Relative Total Shareholder
Return (25%)
External measure of shareholder
value/return
‘Median’ to ‘upper quartile’ relative to
global industry peers (see below) over
the three-year performance period
Adjusted Group ROCE (25%) Drives disciplined and efficient
investment for value-added
returns from the total business
13% – 17% in the final year of the
three-year performance period
Purpose and sustainability
metrics (20%):
• Reduction in greenhouse gas
emissions
• Beneficial use of waste
• Reduction in water use
intensity
• Gender diversity
Central to positioning as a
purpose-led organisation e.g.
aligned to our commitment to be
net zero by 2050
Targets linked to ESG and sustainability
commitments, see table on page 122
Targets for financial metrics are set, and performance is assessed at reported exchange rates. The TSR comparator group is comprised of:
AAK (Sweden), Archer Daniels Midland (US), Balchem (US), Corbion (Netherlands), Croda (UK), DSM-Firmenich (Netherlands), Givaudan
(Switzerland), Glanbia (Ireland), IFF (US), Ingredion (US), Kerry (Ireland), Novonesis (Denmark), Sensient (US), Symrise (Germany).
121
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Directors’ Remuneration Report continued
Application of remuneration policy for Executive Directors
The chart illustrates the value that may be delivered from each element of the package under
different performance scenarios. The chart also illustrates the incremental value that would be
delivered under a ‘stretch’ performance scenario if the share price increased by 50% between
award and release of the long-term incentive award (under which scenario all shareholders would
benefit from similar gains) based on the salary in the 2025 financial year.
As described on page 116 Chief Financial Officer, Dawn Allen, will not be eligible for variable pay
incentives in respect of financial year 2025.
100%
34% 44%22%
21% 26% 53%
Below
threshold
Target
Stretch
Stretch
+50% share
growth
£848
£2,475
£4,102
£5,186
16% 21% 63%
Chief Executive – Nick Hampton
Base and Benefits
Annual Bonus
Performance Share Plan
0 1,000 2,000 3,000 4,000 5,000 6,000
2022 PSP Award
2
to be assessed 31 March 2025
2023 PSP Award
2
to be assessed 31 March 2026
2024 PSP Award
2
to be assessed 31 March 2027
Sustainability metrics Baseline
1
Threshold Stretch Threshold Stretch Threshold Stretch
GHG emissions
Absolute reduction in Scope 1 and 2 CO
2
e emissions
558,765 tonnes CO
2
e (9%) (15%) (12%) (18%) (15)% (21)%
Waste
Beneficial use of waste
65% beneficial use of waste 76% 83% 79% 86% 83% 90%
Water
Reduction in water use intensity
Aggregate Efficiency Index 1.0
3
(5%) (8%) (6%) (9%) (8)% (11)%
Gender diversity
Women in leadership and management roles
27% 43% 48% 47% 50% 47% 50%
1 ‘Baseline’ against which performance is assessed will update over time to reflect acquired businesses and changes to the operational footprint.
2 All performance subject to variability, based on multiple factors (volume/product mix across plant network/geographic footprint).
3 We use the Aggregate Efficiency Index to measure water use intensity. The baseline for this index is 1.0.
122
Governance
Tate & Lyle PLC Annual Report 2024
Directors’ Remuneration Report continued
Statement of directors’ share awards (audited)
Awards made during the year ended 31 March 2024 (audited)
Award
Type of
award
Date of
grant
Number
of shares
Face value
of award Performance conditions Performance period
% of vesting
at threshold
Nick Hampton Performance Share Plan
1
Conditional award 28 July 23 279 292 2 169 260 30% Compound annual organic revenue growth;
25% Adjusted ROCE;
25% Relative total shareholder return;
20% ESG metrics
Three financial years ending
31 March 2026 plus two-year holding period
15%
Group Bonus Plan
2
Conditional award 28 July 23 40 357 31 3 453 None Two-year deferral n/a
Dawn Allen
3
Performance Share Plan
1
Conditional award 28 July 23 186 221 1 446 378 30% Compound annual organic revenue growth;
25% Adjusted ROCE;
25% Relative total shareholder return;
20% ESG metrics
Three financial years ending
31 March 2026 plus two-year holding period
15%
Group Bonus Plan
2
Conditional award 28 July 23 23 110 179 495 None Two-year deferral n/a
1 In 2023, the Committee approved awards of 300% of salary for both the Chief Executive Officer and Chief Financial Officer, which is within the approved 2023 Remuneration Policy. The awards have been calculated based on the average share price over the last three months of
the preceding financial year, being 776.7 pence per share.
2 Deferred bonus awards were granted under the annual bonus plan (as described on page 114). The full value of these awards has been previously disclosed for each Director in the single figure table in last year’s Annual Report and is similarly included in the 2023 figure in the single
figure table on page 126 of this Report. The share allocation was made during the year ended 31 March 2024, based on the average share price over the last three months of the preceding financial year, being 776.7 pence per share. Deferred bonus awards were subject to
performance conditions in the year ended 31 March 2023 and remain subject to continued employment in accordance with the Plan Rules.
3 Due to Dawn Allen’s resignation in April 2024, these awards will lapse in full, as described on page 116.
123
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Share awards made in previous financial years to 31 March 2023 (audited)
The table below summarises awards made in prior years that are held by Executive Directors.
As at
31 March
2023
(Number)
Awards
vested
during year
(Number)
Awards
lapsed
during year
(Number)
Awards
exercised
during year
(Number)
As at
31 March
2024
(Number)
Grant price at
date of award
(Pence)
Market price on
date awards
exercised
(Pence)
1
Vesting date
Nick Hampton
Performance Share Plan
2020
1
273 295 273 295 83 355 189 940 – 729.98 795 06/06/23
2021
2,3
284 259 – – – 284 259 722.93 – June 24
2022 296 771 – – – 296 771 720.15 – June 25
Group Bonus Plan
2021 32 195 32 195 – 32 195 – 722.93 795 06/06/23
2022 190 – – – 190 720.15 – June 24
1 Awards are nil cost options; and were exercised with a nil exercise price.
2 The performance conditions for the PSP awards made in 2021 are described on page 120. The three-year performance period for these
awards began on the first day of the financial year in which the award was granted.
3 The PSP award made in 2021 to Mr Hampton will vest at 67%, following the Committee’s assessment of performance conditions (as
described on page 120).
As at
31 March
2023
(Number)
Awards
vested
during year
(Number)
Awards
lapsed
during year
(Number)
Awards
exercised
during year
(Number)
As at
31 March
2024
(Number)
Grant price at
date of award
(Pence)
Market price on
date awards
exercised
(Pence)
1
Vesting date
Dawn Allen
Performance Share Plan
1
2022 197 875 – – – 197 875 720.15 – June 25
Appointment Awards (Performance Share Plan Rules)
Appointment
Award A
1
109 005 109 005 – 109 005 – 720.15 795 06/06/23
Appointment
Award B
2
131 917 – – – 131 917 720.15 – June 24
1 This award is subject to claw back, as described on page 116.
2 This award will lapse, as described on page 116.
Sharesave plan awards
Executive Directors may participate in the HMRC-approved Sharesave Plan, under which option
awards are granted on the same terms to all participating employees. These awards are not subject
to performance conditions, and are normally exercisable during the six-month period following the
end of the relevant three- or five-year savings contract. The exercise price reflects a 20% discount
to market value as permitted under HMRC rules and is applicable to all participants.
As at
1 April 2023
(Number)
Options
awarded
during year
(Number)
Options
vested
during year
(Number)
Options
exercised
during
year
(Number)
Options
lapsed
during year
(Number)
As at
31 March 2024
(Number)
Exercise
price
(Pence)
Exercise
period
Nick Hampton
Savings-related
options 20213 321 ––––3 321542
01/03/25 to
31/08/25
Dawn Allen
1
Savings-related
options 20225 253 –––– 0571
01/03/28 to
31/08/28
Savings-related
options 2023 – 3 623 – – – 3 623 512
01/03/27 to
31/08/27
1 All outstanding awards under the sharesave plan with lapse, as described on page 116.
Personal share ownership requirements (policy on executive share ownership)
The Committee believes that material personal investment in Company shares serves to strengthen
the long-term alignment of interests between senior executives and shareholders.
The Chief Executive has a target share ownership requirement of four times base salary, to be
achieved within five years of appointment. Nick Hampton was appointed Chief Executive from
1 April 2018. At 31 March 2024, Mr Hampton holds shares in accordance with the requirement of
649% of his base salary, exceeding this requirement.
The Chief Financial Officer has a target share ownership requirement of three times base salary, to
be achieved within five years of appointment. Dawn Allen was appointed Chief Financial Officer
from 16 May 2022. At 31 March 2024, Ms Allen’s shareholding was 101% of salary.
Under the share ownership policy, the value of deferred shareholdings is assessed net of income
tax, at the prevailing share price. The Committee monitors progress against these requirements
annually.
Directors’ Remuneration Report continued
124
Governance
Tate & Lyle PLC Annual Report 2024
Post-employment shareholding policy
A post-employment shareholding requirement was introduced in 2020. Executive Directors will normally be required to maintain a
shareholding in keeping with the guideline prevailing at the time of their departure, or their actual holding on departure (if lower), for a
period of two years following cessation of employment.
Directors’ interests (audited)
The interests held by each person who was a director during the financial year in the ordinary shares in the Company are shown below.
All these interests are beneficially held, and no director had interests in any other class of shares. The table also summarises the
interests in shares held through the Company’s various share plans.
Total as at
31 March 2023
Interest in
shares
1
Awards –
conditional on
performance
2
Shares – not
conditional on
performance
3
Options – not
conditional on
performance
4
Total as at
31 March 2024
Current holding
6
(% salary)
Shareholding
guidelines
(% salary)
Chair
David Hearn – 3 561 – – – 3 561 n/a n/a
Executive directors
Nick Hampton 1 513 597 741 298 860 322 40 547 3 321 1 645 488 649% 400%
Dawn Allen 453 700 67 422 516 013 23 110 3 623 610 168 101% 300%
Non-executive directors
John Cheung 5 000 5 000 – – – 5 000 n/a n/a
Lars Frederiksen 12 857 12 857 – – – 12 857 n/a n/a
Kimberly Nelson
5
3 771 3 771 – – – 3 771 n/a n/a
Sybella Stanley 4 271 4 271 – – – 4 271 n/a n/a
Warren Tucker 9 944 9 944 – – – 9 944 n/a n/a
Patrícia Corsi – – – – – –n/an/a
Dr Isabelle Esser ––––––n/an/a
Directors that served over the financial year to 31 March 2024
Dr Gerry Murphy 25 713 25 713 – – – n/a n/a n/a
Paul Forman 8 571 8 571 – – – n/a n/a n/a
1 Includes shares owned by connected persons.
2 Awards under the PSP, and the RSA award made to Dawn Allen. PSP awards made in 2021 and 2022 were made as conditional shares and will lapse or be clawed back on cessation of
employment.
3 Deferred share awards made under the Group Bonus Plan.
4 These are HMRC approved sharesave plan awards.
5 Kimberly Nelson’s shares held as American Depository Receipts (ADRs).
6
Shareholding is based on the total interest in shares plus the net value of any shares not conditional on performance as per the share ownership guidelines policy.
There were no changes in directors’ interests in the period from 1 April 2024 to 22 May 2024.
Directors’ Remuneration Report continued
125
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Single figure table (audited)
£000s Salary/fees Benefits
1
Pension
Total fixed
remuneration
Annual
bonus
Share
awards
Total variable
remuneration
Tot al
remuneration
Year ended 31 March 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024
2
2023 2024 2023 2024 2023
Executive
Directors
Nick Hampton 723 712 17 17 108 107 848 836 564 1 026 1 173 1 505 1 737 2 531 2 585 3 367
Dawn Allen 482 417 13 11 72 63 567 491 0 597 0 864 0 1 461 567 1 952
Board Chair
David Hearn
4
89 – – – – – 89 – – – – – – – 89 –
Non-executive
directors
3
John Cheung 69 68 – – – – 69 68 – – – – – – 69 68
Lars Frederiksen 69 68 – – – – 69 68 – – – – – – 69 68
Kimberly Nelson 72 68 – – – – 69 68 – – – – – – 72 68
Sybella Stanley 84 82 – – – – 84 82 – – – – – – 84 82
Warren Tucker
5
183 86 – – – – 183 86 – – – – – – 183 86
Patrícia Corsi 69 68 – – – – 69 68 – – – – – – 69 68
Dr Isabelle Esser 69 57 – – – – 69 57 – – – – – – 69 57
Former directors
Dr Gerry Murphy 148 350 – – – – 148 350 – – – – – – 148 350
Paul Forman 60 79 – – – – 60 79 – – – – – – 60 79
Tota ls 2 117 2 055 30 28 180 170 2 333 2 253 564 1 623 1 173 2 369 1 737 3 992 4 064 6 245
1 Benefits for Executive Directors include health insurance and car allowance.
2 2021 PSP outcomes are discussed on page 120. Value shown in the table above is based on the average closing price for the period 1 January 2024 to 31 March 2024 being 615.77 pence,
3 In accordance with the Group’s expenses policies, non-executive directors receive reimbursement for their reasonable expenses for attending Board meetings. In instances where
those costs are treated by HMRC as taxable benefits, the Group also meets the associated tax cost to the non-executive director through a PAYE settlement agreement with HMRC.
Amounts are minimal and do not show in the table after rounding.
4 David Hearn was appointed 1 January 2024.
5 Warren Tucker was Interim Chair from 1 September 2023 to 31 December 2023.
Directors’ Remuneration Report continued
Payments to past directors and payments for loss of office
(audited)
There have been no payments to past directors other than as
disclosed in this Report. No loss of office payments have been
made during the year.
Executive Directors’ external appointments
Nick Hampton was appointed as a non-executive director of
Great Portland Estates plc on 17 October 2016 and under the
terms of the Remuneration Policy is entitled to retain those fees.
Dawn Allen was appointed as a non-executive director of ITV plc
on 2 October 2023 and under the terms of the Remuneration
Policy is entitled to retain those fees.
On behalf of the Board
Sybella Stanley
Chair of the Remuneration Committee
22 May 2024
126
Governance
Tate & Lyle PLC Annual Report 2024
Directors’ Report
Results and dividend
A review of the consolidated Group’s results can be found from
pages 10 to 72. An interim dividend of 6.2 pence per ordinary
share was paid on 5 January 2024. The Directors recommend a
final dividend of 12.9 pence per ordinary share to be paid on
2 August 2024 to shareholders on the register on 21 June 2024,
subject to approval at the 2024 Annual General Meeting (AGM).
The total dividend for the year is 19.1 pence per ordinary share
(2023 – 18.5 pence).
The Trustees of the Tate & Lyle PLC Employee Benefit Trust (the
EBT) have waived their right to receive dividends over their total
holding of 5,558,995 shares as at 31 March 2024.
Research and development
The Group spend on research and development during the year
was £44 million (2023 – £46 million). More details can be found on
pages 9 and 39.
Articles of Association
The Articles of Association set out the internal regulation
of the Company and cover such matters as the rights of
shareholders, the appointment and removal of directors, and
the conduct of the Board and general meetings. Copies are
available on request and are displayed on the Company’s
website: www.tateandlyle.com/about-us/corporate-governance.
In accordance with the Articles of Association, directors can be
appointed or removed by the Board or by shareholders in a
general meeting. Amendments to the Articles of Association
have to be approved by at least 75% of those voting in person or
by proxy at a general meeting of the Company. Subject to UK
company law and the Articles of Association, the directors may
exercise all the powers of the Company, and may delegate
authorities to committees, and may delegate day-to-day
management and decision-making to individual executive
directors. Details of the Board Committees can be found on
pages 100, 102 and 108.
Share capital
As at 31 March 2024, the Company had nominal issued share
capital of £117 million. To satisfy obligations under employee
share plans, the Company issued 57,349 ordinary shares during
the year. The Company issued 14,557 shares during the period
from 1 April 2024 to 22 May 2024. Further information about share
capital is in Note 23. Information about options granted under the
Company’s employee share plans is in Note 32.
The Company was given authority at the 2023 AGM to make
market purchases of up to 40,165,770 of its own ordinary shares.
The Company made no purchases of its own ordinary shares
during the year ended 31 March 2024, and the EBT purchased
2,800,000 shares during the year. This authority will expire at the
2024 AGM and approval will be sought from shareholders for a
similar authority to be given for a further year.
Restrictions on holding shares
There are no restrictions on the transfer of shares in the capital of
the Company. No limitations are placed on the holding of shares
and no share carries special rights of control of the Company.
There are no restrictions on voting rights. The Company is not
aware of any agreements between shareholders that may restrict
the transfer or exercise of voting rights.
About the Directors’ Report
The Directors’ Report comprises the Board of Directors
from pages 80 to 82, Governance section from pages 84
to 107, the Directors’ Report on pages 127 to 129 and the
Useful Information section from pages 199 to 204. Other
information that is relevant to the Directors’ Report, and
which is incorporated by reference into the Directors’ Report,
is disclosed as follows:
• Likely future developments and performance of the
Company (throughout the Strategic Report)
• Engagement with suppliers, customers and others
(throughout the Strategic Report and pages 90 to 94)
• Engagement with employees (pages 44 to 49 and 90
to 94)
• Respect for human rights (pages 49 and 70)
• Going concern (page 38)
• Greenhouse gas emissions (pages 52 and 53)
• Financial instruments (Note 29)
• Post balance sheet events (Note 37).
127
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Shareholders’ rights
Holders of shares have the rights accorded to them under UK
company law, including the rights to receive the Company’s
annual report and accounts, attend and speak at general
meetings, appoint proxies and exercise voting rights.
Further details regarding the rights and obligations attached to
shares are contained in the Articles of Association which are
available on the Company’s website, www.tateandlyle.com.
Directors’ indemnities and insurance cover
The Company has agreed to indemnify the directors, to the
extent permitted by the Companies Act 2006, against claims
from third parties in respect of certain liabilities arising out of,
or in connection with, the execution of their powers, duties and
responsibilities as directors of the Company and any of its
subsidiaries. The directors are also indemnified against the cost
of defending a criminal prosecution or a claim by the Company,
its subsidiaries or a regulator, provided that where the defence is
unsuccessful, the director must repay those defence costs.
These indemnities are qualifying indemnity provisions for the
purposes of Sections 232 to 234 of the Companies Act 2006.
The Company also maintains directors’ and officers’ liability
insurance cover, and reviews the level of cover each year.
Change of control
At 31 March 2024, the Group had a committed bank facility
of US$800 million with a number of relationship banks which
contains change of control clauses. The Group also had
US$680 million of Private Placement Notes which contain
change of control provisions. In aggregate, this financing
is considered significant to the Group and in the event of a
takeover (change of control) of the Company, these contracts
may be cancelled, become immediately payable or be subject
to acceleration. See Note 26 for further information.
All the Company’s share plans contain provisions relating to a
change of control. Further information is set out in the Directors’
Remuneration Policy.
Major shareholders
The Company was notified under Rule 5 of the Disclosure
Guidance and Transparency Rules of the following holdings
of voting rights in its shares during the financial year ended
31 March 2024:
Date of notification
Number of
shares % held
Norges Bank 29 February 2024 16,061,593 3.99%
Ameriprise Financial, Inc. 26 July 2023 40,110,066 9.99%
BlackRock, Inc. 5 December 2023 28,013,302 6.96%
Bank of America Corporation 29 March 2024 36,347,872 9.05%
FMR LLC 27 February 2024 20,277,978 5.05%
Since 31 March 2024, the Company was notified of the following
changes in holdings:
Date of notification Number of shares % held
Black Creek Investment
Management Inc. 4 April 2024 12,088,412 3%
Bank of America Corporation 16 May 2024 6,494,341 1.62%
The Company was not notified of any other changes in holdings
between 1 April and 24 May 2024.
Political donations
In line with the Group’s policy, no political donations were made
in the UK or in any country during the year. Tate & Lyle’s US
business does not operate a Political Action Committee.
Subsidiaries and branches
A list of the Group’s subsidiaries is set out in Note 38. The Group
has branches in Brazil, China, Hong Kong and New Zealand.
Directors’ Report continued
128
Governance
Tate & Lyle PLC Annual Report 2024
Directors’ statement of responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in
accordance with applicable United Kingdom law and regulations.
Company law requires the directors to prepare financial statements for each financial year.
Under that law the directors have elected to prepare the Group financial statements in
accordance with UK-adopted international accounting standards, and the Company financial
statements in accordance with United Kingdom Generally Accepted Accounting Practice (United
Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 101
Reduced Disclosure Framework (‘FRS 101’). Under company law the directors must not approve
the financial statements unless they are satisfied that they give a true and fair view of the state of
affairs of the Group and the Company and of the profit or loss of the Group for that period.
In preparing these financial statements the directors are required to:
• select suitable accounting policies in accordance with IAS 8 Accounting Policies, Changes in
Accounting Estimates and Errors and then apply them consistently
• make judgements and accounting estimates that are reasonable and prudent
• present information, including accounting policies, in a manner that provides relevant, reliable,
comparable and understandable information
• provide additional disclosures when compliance with the specific requirements in UK-adopted
international accounting standards and in respect of the Company financial statements,
FRS 101 is insufficient to enable users to understand the impact of particular transactions, other
events and conditions on the Group and Company financial position and financial
performance
• state, in respect of the Group financial statements, whether UK-adopted international
accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements
• state, in respect of the Company financial statements, whether applicable UK Accounting
Standards, including FRS 101, have been followed, subject to any material departures
disclosed and explained in the financial statements
• prepare the financial statements on the going concern basis unless it is appropriate to
presume that the Group and/or the Company will not continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to
show and explain the Group’s and Company’s transactions and disclose with reasonable
accuracy at any time the financial position of the Group and the Company and enable them
to ensure that the Group and the Company financial statements comply with the Companies
Act 2006. They are also responsible for safeguarding the assets of the Group and the
Company and hence for taking reasonable steps for the prevention and detection of fraud
and other irregularities.
Under applicable law and regulations, the directors are also responsible for preparing a
Strategic Report, Directors’ Report, Directors’ Remuneration Report and Corporate Governance
Statement that comply with that law and those regulations. The directors are responsible for
the maintenance and integrity of the corporate and financial information included on the
Company’s website.
In accordance with Disclosure Guidance and Transparency Rule 4.1, the directors confirm, to the
best of their knowledge that:
• the Group financial statements, prepared in accordance with UK-adopted international
accounting standards, give a true and fair view of the assets, liabilities, financial position and
profit of the Company and undertakings included in the consolidation taken as a whole;
• the Annual Report, including the Strategic Report, includes a fair review of the development
and performance of the business and the position of the Company and undertakings included
in the consolidation taken as a whole, together with a description of the principal risks and
uncertainties that they face; and
• they consider the Annual Report, taken as a whole, is fair, balanced and understandable and
provides the information necessary for shareholders to assess the Group’s and Company’s
position, performance, business model and strategy.
Disclosure of information to auditor
So far as each director is aware, there is no relevant audit information of which the Company’s
auditor is unaware; and he or she has taken all the steps that he or she ought to have taken as
a director in order to make himself or herself aware of any relevant audit information and to
establish that the Group and Company’s auditor is aware of that information.
The Directors’ Report on pages 80 to 107, pages 127 to 129, and pages 200 to 204 and the
Directors’ Remuneration Report from pages 108 to 126 of this Annual Report were approved by
the Directors on 22 May 2024.
Claire-Marie O’Grady
Company Secretary
22 May 2024
Directors’ Report continued
129
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Financial statements
In this section
131 Independent Auditor’s Report to
the members of Tate & Lyle PLC
138 Consolidated income statement
139 Consolidated statement of
comprehensive income
140 Consolidated statement of
financial position
141 Consolidated statement of cash
flows
142 Consolidated statement of
changes in equity
143 Notes to the consolidated
financial statements
192 Parent Company financial
statements
Tate & Lyle PLC Annual Report 2024
Financial statements
130
Independent Auditor’s Report to the members of Tate & Lyle PLC
Opinion
In our opinion:
Tate & Lyle PLC’s Group financial statements and Parent Company financial statements (the “financial
statements”) give a true and fair view of the state of the Group’s and of the Parent Company’s affairs as
at31 March 2024 and of the Group’s profit for the year then ended;
the Group financial statements have been properly prepared in accordance with UK adopted
International Accounting Standards;
the Parent Company financial statements have been properly prepared in accordance with United
Kingdom Generally Accepted Accounting Practice; and
the financial statements have been prepared in accordance with the requirements of the Companies
Act2006.
We have audited the financial statements of Tate & Lyle PLC (the ‘Parent Company’) and its subsidiaries
(the ‘Group’) for the year ended 31 March 2024 which comprise:
Group
Parent company
Consolidated statement of financial position as at
31March 2024
Balance sheet as at 31 March 2024
Consolidated income statement for the year then
ended
Statement of changes in equity for the year
thenended
Consolidated statement of comprehensive income
for the year then ended
Related notes 1 to 13 to the financial statements
including material accounting policy information
Consolidated statement of changes in equity for the
year then ended
Consolidated statement of cash flows for the year
then ended
Related notes 1 to 39 to the financial statements,
including material accounting policy information
The financial reporting framework that has been applied in the preparation of the Group financial
statements is applicable law and UK adopted International Accounting Standards. The financial reporting
framework that has been applied in the preparation of the Parent Company financial statements is
applicable law and United Kingdom Accounting Standards, FRS 101 “Reduced Disclosure Framework”
(United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and
applicable law. Our responsibilities under those standards are further described in the Auditor’s
responsibilities for the audit of the financial statements section of our report. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the Group and Parent Company in accordance with the ethical requirements that
arerelevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard as
applied to listed public interest entities, and we have fulfilled our other ethical responsibilities in accordance
with these requirements.
The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the Group or the
Parent Company and we remain independent of the Group and the Parent Company in conducting
theaudit.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis
ofaccounting in the preparation of the financial statements is appropriate. Our evaluation of the directors’
assessment of the Group and Parent Company’s ability to continue to adopt the going concern basis of
accounting included:
We assessed the risk around going concern at the interim review and then again at the planning and
year-end phases of the audit;
In conjunction with our walkthrough of the Group’s financial close process, we confirmed our
understanding of management’s going concern assessment process and also engaged with
management to assess the key factors considered in its assessment;
We obtained management’s going concern assessment, including the cash flow forecast model and
covenant calculation for the going concern period to 31 March 2026. The Group has modelled a number
of downside scenarios in their liquidity forecasts in order to incorporate unexpected changes to the
forecasted liquidity of the Group;
We tested the clerical accuracy of the model used to prepare the Group’s going concern assessment;
We considered the appropriateness of the methods used to calculate the cash forecasts and determined
through inspection and testing of the methodology and calculations, that the methods adopted were
appropriate and reasonable taking into account the changes in the Group;
We assessed management’s ability to forecast with reference to historical accuracy of forecasts
prepared for going concern and impairment tests in prior periods;
We tested the key inputs to the model including checking cash and cash equivalents of £437 million at
31March 2024, operating cash generation and financing commitments and agreed them to the latest
Board-approved forecasts that factored in the downside scenarios. We confirmed the details of the
available committed and undrawn US$800 million revolving credit facility, which was re-negotiated in
May 2024 and now runs to 2029, with reference to agreements;
We assessed the reasonableness of the key assumptions in the context of our understanding of
theGroup and its principal risks and from other supporting evidence gained from our audit work.
Thisincluded review of minutes of board meetings and our procedures in respect of goodwill impairment
reviews and from other external market data, including analyst forecasts and competitor trading updates;
We checked that all debt repayments within the going concern period were appropriately included in
theforecasts;
We understood the potential severe but plausible downside scenarios that management had applied and
assessed their likelihood and whether other more severe scenarios could plausibly apply and the
associated impact on liquidity headroom;
We considered the appropriateness of key assumptions in management’s reverse stress testing and
assessed the likelihood of the various scenarios that could erode headroom;
We performed testing to evaluate whether the covenant requirements of the Group borrowings would be
met under all base and severe but plausible downside scenarios;
We reviewed minutes of board meetings, analysts’ reports and trading updates released to the market
from competitors and customers with a view to identifying any matters which may impact the going
concern assessment and contradict the findings made from the procedures we performed above;
We reviewed the Group’s going concern disclosures included in the Strategic Report on page 38 and
Note 1 to the consolidated financial statements on page 143 in order to assess that the disclosures were
appropriate and in conformity with the reporting standards.
We observed the Group has significant liquidity at its disposal that could be utilised if the modelled severe
but plausible downside scenario was to occur. This liquidity has been further increased following the
re-negotiation of the US$800 million revolving credit facility which was re-negotiated in May 2024 and now
runs to 2029.
131
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Independent Auditor’s Report to the members of Tate & Lyle PLC continued
Based on the work we have performed, we have not identified any material uncertainties relating to
eventsor conditions that, individually or collectively, may cast significant doubt on the Group and Parent
Company’s ability to continue as a going concern for a period to 31 March 2026.
In relation to the Group and Parent Company’s reporting on how they have applied the UK Corporate
Governance Code, we have nothing material to add or draw attention to in relation to the directors’
statement in the financial statements about whether the directors considered it appropriate to adopt the
going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in
the relevant sections of this report. However, because not all future events or conditions can be predicted,
this statement is not a guarantee as to the Group and Parent Company’s ability to continue as a going
concern.
Overview of our audit approach
Audit scope
–
We performed an audit of the complete financial information of five components and
audit procedures on specific balances for a further three components.
–
The components where we performed full or specific audit procedures accounted for
84% of the adjusted profit before tax (measure used to calculate materiality), 84% of
Revenue and 79% of Total assets.
Key audit matters
–
Revenue recognition, including the risk of management override.
Materiality
–
Overall Group materiality of £14.7m which represents 5.2% of profit before tax adjusted
for exceptional items and amortisation of acquired intangible assets (‘adjusted profit
before tax’).
An overview of the scope of the Parent Company and Group audits
Tailoring the scope
Our assessment of audit risk, our evaluation of materiality and our allocation of performance materiality
determine our audit scope for each company within the Group. Taken together, this enables us to form an
opinion on the consolidated financial statements. We take into account size, risk profile, the organisation of
the Group and effectiveness of Group-wide controls, changes in the business environment, the potential
impact of climate change and other factors such as recent Internal audit results when assessing the level
ofwork to be performed at each company.
In assessing the risk of material misstatement to the Group financial statements, and to ensure we had
adequate quantitative coverage of significant accounts in the financial statements, of the reporting
components of the Group, we selected eight components covering entities within US, UK, Slovakia and
Netherlands, which represent the principal business units within the Group.
Of the eight components selected, we performed an audit of the complete financial information of five
components (“full scope components”) which were selected based on their size or risk characteristics.
Forthe remaining three components (“specific scope components”), we performed audit procedures
onspecific accounts within that component that we considered had the potential for the greatest impact
onthe significant accounts in the financial statements either because of the size of these accounts or their
riskprofile.
In addition to the full scope components and specific scope components, we also instructed four
components to perform specified procedures over certain aspects of the financial statements. This
included procedures relating to cash and cash equivalents, inventory and the completeness and valuation
of insurance provisions, to gain sufficient coverage over these balance sheet accounts at the year-end.
The table below illustrate the coverage obtained from the work performed by our audit teams.
Number
% Group adjusted
profit before tax
% Group revenue % Total assets
See
notes
Year ended 31 March
2024 2023 2024 2023 2024 2023 2024 2023
Full scope 5 6 68% 64% 53% 55% 65% 66% A
Specific scope 3 3 16% 22% 31% 31% 14% 14% A, B
Coverage
8 9 84% 86% 84% 86% 79% 80%
Specified procedures 4 4 2% 3% 4% 3% 6% 5% B
Remaining components 82 81 14% 11% 12% 11% 15% 15% C
Total reporting components
94 94 100% 100% 100% 100% 100% 100%
Notes
A. The Group audit risk in relation to revenue recognition was subject to audit procedures at two full scope and two specific
scope components.
B. The audit scope of these components may not have included testing of all significant accounts of the component but will
have contributed to the coverage of significant accounts tested for the Group.
C. Of the remaining components that together represent 14% of the Group’s adjusted profit before tax, none are individually
greater than 5% of the Group’s adjusted profit before tax measure used to calculate materiality. For these components,
we performed other procedures, including analytical review, testing of consolidation journals, intercompany eliminations,
and foreign currency translations recalculations to respond to any potential risks of material misstatement to the Group
financial statements.
Changes from the prior year
The changes in the scope of our audit include the following:
Reducing the audit scope for Quantum (China) from full scope to specified procedures. The scope in
the prior year was based on our risk assessment given the acquisition was completed in the year ended
31 March 2023. In the current year, considering the relative size and our risk assessment, we concluded
the change in scope was appropriate.
Removal of Tate & Lyle Italia from our specified procedures scope for inventory given the decrease in the
value of inventory held by the component in the current year.
Involvement with component teams
In establishing our overall approach to the Group audit, we determined the type of work that needed to be
undertaken at each of the components by us, as the primary audit engagement team, or by component
auditors from other EY global network firms operating under our instruction. Of the five full scope
components, audit procedures were performed on three of these directly by the component audit teams
whilst the remaining two were completed by the primary audit team. For the three specific scope
components and four specified procedures components, where the work was performed by component
auditors, we determined the appropriate level of involvement to enable us to determine that sufficient audit
evidence had been obtained as a basis for our opinion on the Group as a whole.
Financial statements
132
Tate & Lyle PLC Annual Report 2024
Independent Auditor’s Report to the members of Tate & Lyle PLC continued
The Group audit team continued to follow a programme of planned visits that has been designed to
ensurethat the Senior Statutory Auditor visits all full scope locations and some specific scope locations.
During the current year’s audit cycle, we completed a combination of physical site visits to components
andalternative oversight procedures, including hosting a virtual global planning event with all full scope
andspecific scopecomponents and our group shared service team. Physical site visits were undertaken
bythe Senior Statutory Auditor to the component teams in the US, Slovakia and China. These visits
involved discussing the audit approach with the component teams and any issues arising from their work,
meetings with localmanagement, attending closing meetings, reviewing relevant audit working papers
onrisk areas. Theprimary team interacted regularly with the component teams where appropriate during
various stages of the audit. Our interactions involved using video technology and our global audit software
to meet with component teams to discuss and direct their audit approach, review relevant working papers
and understand their significant audit findings, particularly over the risk areas identified. We also attended
meetings with local management and attended, in person or virtually, all full scope component audit
closingmeetings.
This, together with the additional procedures performed at Group level, gave us appropriate evidence for
our opinion on the Group financial statements.
Climate change
Stakeholders are increasingly interested in how climate change will impact the Group. The Group has
determined that the most significant future impacts from climate change on its operations will be from
disruption of production facilities, distribution networks and corn and stevia supply from acute weather
events and incremental changes in climatic conditions. These are explained on pages 73 to 77 in the
required Task Force On Climate Related Financial Disclosures and on pages 63 to 72 in the principal risks
and uncertainties. They have also explained their climate commitments on pages 60 to 61. All of these
disclosures form part of the “Other information,” rather than the audited financial statements. Our
procedures on these unaudited disclosures therefore consisted solely of considering whether they are
materially inconsistent with the financial statements or our knowledge obtained in the course of the audit
orotherwise appear to be materially misstated, in line with our responsibilities on “Other information”.
In planning and performing our audit we assessed the potential impacts of climate change on the Group’s
business and any consequential material impact on its financial statements.
The Group has explained in Note 1 (Climate change considerations), how they have reflected the impact
of climate change in their financial statements. In Note 19 (Goodwill and other intangible assets) to the
financial statements, narrative explanation including further details over the Group’s considerations have
been provided.
Our audit effort in considering the impact of climate change on the financial statements was focused on
evaluating management’s assessment of the impact of climate risk, physical and transition, their climate
commitments, the effects of material climate risks disclosed on pages 68, and 74 to 76 and the significant
judgements and estimates disclosed in Note 2 and whether these have been appropriately reflected in the
asset values and useful economic lives and cash flow projections used in assessing the recoverable
amount of the Group’s CGUs, the Group’s going concern and viability assessment and in the Group’s
share-based payment charge. As part of this evaluation, we performed our own risk assessment,
supported by our climate change internal specialists, to determine the risks of material misstatement
in the financial statements from climate change which needed to be considered in our audit.
We also challenged the directors’ considerations of climate change risks in their assessment of going
concern and viability and associated disclosures. Where considerations of climate change were relevant
toour assessment of going concern, these are described above.
Based on our work we have not identified the impact of climate change on the financial statements to be
a
key audit matter or to impact a key audit matter.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial statements of the current period and include the most significant assessed risks of
material misstatement (whether or not due to fraud) that we identified. These matters included those which
had the greatest effect on: the overall audit strategy, the allocation of resources in the audit, and directing
the efforts of the engagement team. These matters were addressed in the context of our audit of the
financial statements as a whole, and in our opinion thereon, and we do not provide a separate opinion
onthese matters.
Risk
Our response to the risk
Key observations communicated
tothe audit committee
Revenue recognition,
specifically in relation to
therisk of management
override (Group)
£1,647 million (2023 –
£1,751million)
Refer to the Accounting
policies (page 149); and
Note 5 of the Consolidated
Financial Statements
The majority of the Group’s
sales arrangements are
generally straightforward,
requiring little judgement to
be exercised.
However, management’s
reward and incentive
schemes, based on achieving
sales and profit targets, may
create pressure to
manipulate results.
There is a risk that
management may override
controls to intentionally
misstate revenue through
recording fictitious revenue
transactions in the underlying
subledgers or as
consolidation journals.
Performed walkthroughs of significant
classes of revenue transactions
tounderstand related significant
processes and to identify and assess
the design effectiveness of key controls
Understood how the revenue
recognition policies are applied.
Weunderstood the relevant controls
including IT controls over the revenue
applications
Tested the underlying IT systems and
the controls related to manage access,
manage change and IT operations to
investigate whether there was any
evidence of override of the underlying
ITsystems which could facilitate
management override
As part of our revenue testing, we
useddata analysis tools on revenue
populations in the year to test the
correlation of revenue to cash receipts
to verify the occurrence of revenue.
Weidentified any material transactions
which fell outside the expected
transactions flow and tested these to
confirm that they were valid business
transactions and were appropriately
accounted for
Performed cut-off testing over a sample
of revenue transactions around the year
end date, to check that they were
recognised in the appropriate period
Based on the procedures
performed, we did not identify
any evidence of material
misstatement in the revenue
recognised in the year or
evidence of management
override of controls.
133
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Independent Auditor’s Report to the members of Tate & Lyle PLC continued
Risk
Our response to the risk
Key observations communicated
tothe audit committee
Performed other audit procedures
specifically designed to address the risk
of management override of controls.
This included journal entry testing,
applying particular focus to significant
manual or unusual journal entries to
ensure each entry is supported by
anappropriate, underlying business
rationale, is properly authorised
andaccounted for correctly in the
correctperiod
The procedures detailed above were
performed principally by component
auditteams for all in scope locations with
trading revenues and reviewed by the
Group audit team.
In the prior year, our auditor’s report included a key audit matter in relation to Purchase Price Accounting
(“PPA”) relating to the sale of the controlling interest of Primient. Given the completion of the transaction
inthe prior year, this key audit matter is no longer applicable to the Group.
Our application of materiality
We apply the concept of materiality in planning and performing the audit, in evaluating the effect of
identified misstatements on the audit and in forming our audit opinion.
Materiality
The magnitude of an omission or misstatement that, individually or in the aggregate, could reasonably be
expected to influence the economic decisions of the users of the financial statements. Materiality provides
a basis for determining the nature and extent of our audit procedures.
We determined materiality for the Group to be £14.7 million (2023 - £13 million), which is 5% (2023 - 5%) of
profit before tax adjusted for exceptional items and amortisation of acquired intangible assets. We believe
that profit before tax adjusted for exceptional items and amortisation of acquired intangible assets provides
us with the most relevant profit basis as the exceptional items were non-recurring and not related to the
ongoing trading of the Group whilst amortisation of acquired intangible assets has resulted from the
previous business combinations in the prior period.
We determined materiality for the Parent Company to be £10.0 million (2023 - £13.5 million), which is 0.5%
(2023 - 0.5%) of total assets.
Adjustments
– £225.9 million (profit before tax)
– £25.0 million exceptional items
– £31.9 million for the amortisation of acquired intangible assets
– £282.8 million (adjusted profit before tax)
Materiality
– Materiality maintained at planning level of £14.7 million versus
£14.2 million on adjusted final reported profit before tax (5% of
materiality basis). While the materiality reduced, it was concluded to
not be significant and therefore no changes were made to the
materiality. Further, we assessed and concluded that this reduction
has no impact on our audit risks and audit procedures performed.
Materiality basis
Starting basis
Financial statements
134
Tate & Lyle PLC Annual Report 2024
Independent Auditor’s Report to the members of Tate & Lyle PLC continued
Performance materiality
The application of materiality at the individual account or balance level. It is set at an amount to reduce to an
appropriately low level the probability that the aggregate of uncorrected and undetected misstatements
exceeds materiality.
On the basis of our risk assessments, together with our assessment of the Group’s overall control
environment, our judgement was that performance materiality was 75% (2023 - 75%) of our planning
materiality, namely £11.0 million (2023 - £9.7 million). We have set performance materiality at this
percentage due to our assessment of the risk of material misstatement.
Audit work at component locations for the purpose of obtaining audit coverage over significant
financialstatement accounts is undertaken based on a percentage of total performance materiality.
Theperformance materiality set for each component is based on the relative scale and risk of the
component to the Group as a whole and our assessment of the risk of misstatement at that component.
Inthe current year, the range of performance materiality allocated to components was £22.0 million to
£2.8million (2023 - £9.7 million to £2.9 million). In relation to the joint venture, we have performed audit
procedures over the entire component and therefore have grossed up the allocated performance
materiality to reflect the Group’s percentage holding.
Reporting threshold
An amount below which identified misstatements are considered as being clearly trivial.
We agreed with the Audit Committee that we would report to them all uncorrected audit differences in
excess of £0.7 million (2023 - £0.6 million), which is set at 5% of planning materiality, as well as differences
below that threshold that, in our view, warranted reporting on qualitative grounds.
We evaluate any uncorrected misstatements against both the quantitative measures of materiality
discussed above and in light of other relevant qualitative considerations in forming our opinion.
Other information
The other information comprises the information included in the annual report set out on pages 1 to 129,
including the Strategic report on pages 8 to 78 and the Governance report pages 80 to 129, other than the
financial statements and our auditor’s report thereon. The directors are responsible for the other information
contained within the Annual Report.
Our opinion on the financial statements does not cover the other information and, except to the extent
otherwise explicitly stated in this report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information
ismaterially inconsistent with the financial statements or our knowledge obtained in the course of the audit
or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent
material misstatements, we are required to determine whether this gives rise to a material misstatement
inthe financial statements themselves. If, based on the work we have performed, we conclude that there is
a material misstatement of the other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, the part of the Directors’ Remuneration Report to be audited has been properly prepared in
accordance with the Companies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
the information given in the Strategic Report and the Directors’ Report for the financial year for which the
financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors’ report have been prepared in accordance with applicable legal
requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Group and the Parent Company and its environment
obtained in the course of the audit, we have not identified material misstatements in the strategic report or
the Directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006
requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the Parent Company, or returns adequate for our
audit have not been received from branches not visited by us; or
the parent company financial statements and the part of the Directors’ Remuneration Report to be
audited are not in agreement with the accounting records and returns; or
certain disclosures of directors’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Corporate Governance statement
We have reviewed the directors’ statement in relation to going concern, longer-term viability and that part of
the Corporate Governance statement relating to the Group and Company’s compliance with the provisions
of the UK Corporate Governance Code specified for our review by the Listing Rules.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements
of the Corporate Governance statement is materially consistent with the financial statements or our
knowledge obtained during the audit:
Directors’ statement with regards to the appropriateness of adopting the going concern basis of
accounting and any material uncertainties identified set out on page pages 38 and 143;
Directors’ explanation as to its assessment of the Company’s prospects, the period this assessment
covers and why the period is appropriate set out on page 65;
Director’s statement on whether it has a reasonable expectation that the Group will be able to continue in
operation and meets its liabilities set out on page 65;
Directors’ statement on fair, balanced and understandable set out on page 107;
Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set
out on pages 64 and 65;
The section of the annual report that describes the review of effectiveness of risk management and
internal control systems set out on page 106; and;
The section describing the work of the Audit Committee set out on page 102 to 106.
135
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Independent Auditor’s Report to the members of Tate & Lyle PLC continued
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement set out on page 129, the directors are
responsible for the preparation of the financial statements and for being satisfied that they give a true and
fair view, and for such internal control as the directors determine is necessary to enable the preparation of
financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Group and Parent
Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the directors either intend to liquidate
theGroup or the Parent Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
arefree from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
auditconducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of
these financial statements.
Explanation as to what extent the audit was considered capable of detecting irregularities,
includingfraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud.
The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one
resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional
misrepresentations, or through collusion. The extent to which our procedures are capable of detecting
irregularities, including fraud is detailed below.
However, the primary responsibility for the prevention and detection of fraud rests with both those charged
with governance of the company and management.
We obtained an understanding of the legal and regulatory frameworks that are applicable to the Group
and determined that the most significant are:
Those that relate to the form and content of the financial statements: UK adopted International
Accounting Standards (for the Group), FRS 101 (for the Parent Company), the Companies Act 2006
andthe UK Corporate Governance Code;
Those that relate to the relevant tax compliance regulations in the jurisdictions in which the Group
operates; and
In addition, we concluded that there are certain significant laws and regulations which may have an
effect on the determination of the amounts and disclosures in the financial statements being the
Listing Rules of the UK Listing Authority, and those laws and regulations relating to health and safety
and employee matters.
We understood how Tate & Lyle PLC is complying with those frameworks by making enquiries of
management, internal audit, those responsible for legal and compliance procedures and the company
secretary. We corroborated our enquiries through our review of Board minutes and papers provided to
the Audit Committee and attendance at all meetings of the Audit Committee, as well as consideration
ofthe results of our audit procedures across the Group.
We assessed the susceptibility of the Group’s financial statements to material misstatement, including
how fraud might occur by:
Meeting with management from various parts of the business to understand where they considered
there to be susceptibility to fraud;
Assessing whistleblowing incidences for those with a potential financial reporting impact;
Considered performance targets and their propensity to influence efforts made by management to
manage earnings or influence the perceptions of analysts;
Understanding the Group’s annual bonus scheme and long-term incentive plan performance targets
and their propensity to influence on efforts made by management to manage revenue and earnings;
Considered the programmes and controls that the Group has established to address risks identified,
orthat otherwise prevent, deter and detect fraud; and how senior management monitors those
programmes and controls;
Understanding the related party transactions and significant transactions occurring with related parties
in the year; and
Assessing the key judgements and estimates and significant transactions occurring in year.
Where the risk was considered to be higher, we performed audit procedures to address each identified
fraud risk. These procedures included incorporating data analytics in testing of manual journals
(forexample with respect to our work on revenue recognition noted on page 133 above) and were
designed to provide reasonable assurance that the financial statements were free from fraud or error.
Based on this understanding we designed our audit procedures to identify non-compliance with such
laws and regulations, including specific instructions to full and specific scope component audit teams.
Ata Group level, our procedures involved: enquiries of Group management and those charged with
governance, legal counsel, internal audit and division management across all regions in the Group.
Ourprocedures also included testing over manual consolidation journals and journals indicating large
orunusual transactions based on our understanding of the business. At a component level, our full and
specific scope component audit team’s procedures included enquiries of component management;
journal entry testing; and focused testing over areas we considered more susceptible to management
override, including as referred to in the "Revenue recognition" key audit matters section above.
Anyinstances of non-compliance with laws and regulations, including in relation to fraud, were
communicated by/to components and considered in our audit approach, if applicable. In addition,
wecompleted procedures to conclude on the compliance of the disclosures in the annual report and
accounts with all applicable requirements.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at https://www.frc.org.uk/auditorsresponsibilities. This description
forms part of our auditor’s report.
Financial statements
136
Tate & Lyle PLC Annual Report 2024
Independent Auditor’s Report to the members of Tate & Lyle PLC continued
Other matters we are required to address
Following the recommendation from the Audit Committee we were appointed by the Company
on26July 2018 to audit the financial statements for the year ending 31 March 2019 and subsequent
financialperiods.
The period of total uninterrupted engagement including previous renewals and reappointments
is6years, covering the years ending 31 March 2019 to 31 March 2024.
The audit opinion is consistent with the additional report to the Audit Committee.
Use of our report
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16
ofthe Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s
members those matters we are required to state to them in an auditor’s report and for no other purpose.
Tothe fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the
Company and the Company’s members as a body, for our audit work, for this report, or for the opinions
wehave formed.
Jonathan Gill
(Senior statutory auditor)
For and on behalf of Ernst & Young LLP, Statutory Auditor
London
22 May 2024
137
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Consolidated Income Statement
| Year ended 31 March | ||||
| 2024 | 2023 | |||
| Continuing operations | Notes | £m | £m | |
Revenue | 5 | |||
Operating profit | 6 | |||
Finance income | 10 | |||
Finance expense | 10 | ( | ( | |
Share of profit/(loss) of joint venture | 22 | ( | ||
| Profit before tax | ||||
Income tax expense | 11 | ( | ( | |
| Profit for the year – continuing operations | ||||
Profit for the year – discontinued operations | 12 | |||
| Profit for the year – total operations | ||||
| Attributable to: | ||||
| Owners of the Company | ||||
| Profit for the year – total operations | ||||
| Earnings per share | Pence | Pence | ||
Continuing operations: | 13 | |||
| – | basic | |||
| – | diluted | |||
Total operations: | 13 | |||
| – | basic | |||
| – | diluted | |||
Financial statements
138
Tate & Lyle PLC Annual Report 2024
Consolidated Statement of Comprehensive Income
| Year ended 31 March | |||||
| 2024 | 2023 | ||||
| Notes | £m | £m | |||
| Profit for the year – total operations | |||||
| Other comprehensive income/(expense) | |||||
| Items that have been/may be reclassified to profit or loss: | |||||
(Loss)/gain on currency translation of foreign operations | 24 | ( | |||
Fair value gain/(loss) on net investment hedges | 24 | ( | |||
Fair value loss on net investment hedges transferred to the income statement | 24 | ||||
| Gain on currency translation of foreign operations transferred to the income | statement on sale of a subsidiary | 24 | ( | ||
| Fair value gain on cash flow hedges transferred to the income statement on sale | of a subsidiary | 24 | ( | ||
Net loss on cash flow hedges | 24 | ( | ( | ||
Recycling of cost of hedging | 24 | ||||
Share of other comprehensive income/(expense) of joint venture | 22, 24 | ( | |||
Tax effect of the above items | 11 | ||||
( | ( | ||||
| Items that will not be reclassified to profit or loss: | |||||
| Re-measurement of retirement benefit plans: | |||||
| – | actual return higher/(lower) on plan assets | 31 | ( | ||
| – | net actuarial gain on retirement benefit obligations | 31 | |||
Changes in the fair value of equity investments at fair value through OCI | 18, 24 | ( | |||
Tax effect of the above items | 11 | ( | |||
( | |||||
| Total other comprehensive expense | ( | ( | |||
| Total comprehensive income – total operations | |||||
| Analysed by: | |||||
| – | Continuing operations | ||||
| – | Discontinued operations | 12 | |||
| Total comprehensive income – total operations | |||||
| Attributable to: | |||||
| – | Owners of the Company | ||||
| – | Non-controlling interests | ||||
| Total comprehensive income – total operations | |||||
139
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Consolidated Statement of Financial Position
Notes
At 31 March
2024
£m
| At 31 March | |||
| 2023 | |||
| £m | |||
| ASSETS | |||
| Non-current assets | |||
Goodwill and other intangible assets | 19 | ||
| Property, plant and equipment (including right-of-use assets | |||
of £34 million (2023 – £39 million)) | 20 | ||
Investments in joint venture | 22 | ||
Investments in equities | 18 | ||
Retirement benefit surplus | 31 | ||
Deferred tax assets | 11 | ||
Trade and other receivables | 17 | ||
| Current assets | |||
Inventories | 15 | ||
Trade and other receivables | 17 | ||
Current tax assets | 11 | ||
Derivative financial instruments | 29 | ||
Cash and cash equivalents | 16 | ||
| TOTAL ASSETS | |||
| EQUITY | |||
| Capital and reserves | |||
Share capital | 23 | ||
Share premium | 23 | ||
| Capital redemption reserve | |||
Other reserves | 24 | ||
| Retained earnings | |||
| Equity attributable to owners of the Company | |||
| Non-controlling interests | |||
| TOTAL EQUITY |
Notes
| At 31 March | At 31 March | ||
| 2024 | 2023 | ||
| £m | £m | ||
| LIABILITIES | |||
| Non-current liabilities | |||
Borrowings (including lease liabilities of £36 million (2023 – £44 million)) | 26 | ||
Retirement benefit deficit | 31 | ||
Deferred tax liabilities | 11 | ||
Provisions | 33 | ||
| Current liabilities | |||
Borrowings (including lease liabilities of £10 million (2023 – £10 million)) | 26 | ||
Trade and other payables | 25 | ||
Provisions | 33 | ||
Current tax liabilities | 11 | ||
Derivative financial instruments | 29 | ||
| TOTAL LIABILITIES | |||
| TOTAL EQUITY AND LIABILITIES |
Financial statements
140
Tate & Lyle PLC Annual Report 2024
Consolidated Statement of Cash Flows
| Year ended 31 March | ||||
| 2024 | 2023 | |||
| Notes | £m | £m | ||
| Cash flows from operating activities – total operations | ||||
| Profit before tax from total operations | ||||
| Adjustments for: | ||||
| – | depreciation of property, plant and equipment (including right-of-use assets | |||
| and excluding exceptional items) | 20 | |||
| – | amortisation of intangible assets | 19 | ||
| – | share-based payments | 32 | ||
| – | net impact of exceptional income statement items | 8 | ( | ( |
| – | net finance expense | 10 | ||
| – | share of (profit)/loss of joint venture | 22 | ( | |
| – | net retirement benefit obligations | ( | ( | |
| – | other non-cash movements | 27 | ( | ( |
| – | changes in working capital | 27 | ( | |
| Cash generated from total operations | ||||
| Net income tax paid | ( | ( | ||
| Exceptional tax on gain on disposal of Primient | ( | ( | ||
| Interest paid | ( | ( | ||
| Net cash generated from operating activities | ||||
| Cash flows from investing activities | ||||
| Purchase of property, plant and equipment | ( | ( | ||
Acquisition of businesses, net of cash acquired | 35 | ( | ||
Disposal of subsidiary (net of cash) | 12 | |||
| Investments in intangible assets | ( | ( | ||
Purchase of equity investments | 18 | ( | ( | |
Disposal of equity investments | 18 | |||
| Interest received | ||||
Dividends received from joint ventures | 22 | |||
Redemption of shares held in joint venture | 22 | |||
| Net cash (used in)/generated from investing activities | ( |
| Year ended 31 March | |||
| 2024 | 2023 | ||
| Notes | £m | £m | |
| Cash flows from financing activities | |||
Purchase of own shares including net settlement | 23 | ( | ( |
| Cash inflow from additional borrowings | |||
| Cash outflow from repayment of borrowings | ( | ( | |
Repayment of leases | 21 | ( | ( |
Dividends paid to the owners of the Company | 14 | ( | ( |
| Net cash used in financing activities | ( | ( | |
| Cash and cash equivalents | |||
| Balance at beginning of year | |||
Net (decrease)/increase in cash and cash equivalents | 28 | ( | |
Currency translation differences | 28 | ( | |
Balance at end of year | 16 |
A reconciliation of the movement in cash and cash equivalents to the movement in net debt is presented
inNote 28.
The cash flows from discontinued operations included above are presented in Note 12.
141
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Consolidated Statement of Changes in Equity
| Share | Attributable | |||||||
| capital and | Capital | to the | Non- | |||||
| share | redemption | Other | Retained | owners of | controlling | Total | ||
| premium | reserve | reserves | earnings | theCompany | interests | equity | ||
| £m | £m | £m | £m | £m | £m | £m | ||
At 1 April 2022 | ||||||||
| Profit for the year – total | ||||||||
operations | ||||||||
| Other comprehensive | ||||||||
| (expense)/income | ( | ( | ( | |||||
| Total comprehensive | ||||||||
(expense)/income | ( | |||||||
| Hedging gains transferred | ||||||||
| to inventory | ( | ( | ( | |||||
Tax effect of the above Transactions with owners: | item | |||||||
Share-based payments, net of | tax | |||||||
| Issue of share capital | ||||||||
| Purchase of own shares | ||||||||
| including net settlement | ||||||||
| (Note 23) | ( | ( | ( | |||||
| Dividends paid (Note 14) | ( | ( | ( | |||||
| Other movements | ||||||||
At 31 March 2023 |
| Share | Attributable | |||||||
| capital and | Capital | to the | Non- | |||||
| share | redemption | Other | Retained | owners of | controlling | Total | ||
| premium | reserve | reserves | earnings | theCompany | interests | equity | ||
| £m | £m | £m | £m | £m | £m | £m | ||
At 31 March 2023 | ||||||||
| Profit for the year – total | ||||||||
| operations | ||||||||
| Other comprehensive | ||||||||
| (expense)/income | ( | ( | ( | |||||
| Total comprehensive | ||||||||
| (expense)/income | ( | |||||||
| Hedging losses transferred | ||||||||
| to inventory | ||||||||
Tax effect of the above Transactions with owners: | item | ( | ( | ( | ||||
Share-based payments, net of Purchase of own shares | tax | |||||||
| including net settlement | ||||||||
| (Note 23) | ( | ( | ( | |||||
| Dividends paid (Note 14) | ( | ( | ( | |||||
| At 31 March 2024 |
Financial statements
142
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements
143
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
1. Basis of preparation continued
Basis of accounting continued
Financial statements
144
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
2. Significant judgements and estimates continued
145
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
3. Key accounting policies
The consolidated financial statements have been prepared under the historical cost convention, modified
in respect of the revaluation to fair value of certain investments in equities, derivative financial instruments
and assets held by defined benefit pension plans.
Descriptions and specific accounting policy information on how the Group has applied the requirements
of UK adopted International Accounting Standards are included throughout the notes to these
financial statements.
Key accounting policies, where information can be found in the applicable note, include:
Revenue recognition (Note 5)
Income taxes (Note 11)
Discontinued operations (Note 12)
Goodwill and other intangible assets (Note 19)
Leases (Note 21)
Foreign currency translation of subsidiaries (Note 24)
Financial instruments (Notes 17, 18, 25, 26 and 29)
Retirement benefit obligations (Note 31)
Share-based payments (Note 32)
4. Reconciliation of alternative performance measures
Income statement measures
For the reasons set out in Note 1, the Group also presents alternative performance measures including
adjusted EBITDA, adjusted profit before tax and adjusted earnings per share.
The Group has amended its alternative performance measures to exclude certain merger and acquisition
(‘M&A’) costs in order to more clearly measure its underlying performance. The prior year comparatives
have been restated accordingly.
For the years presented, alternative performance measures exclude, where relevant:
Exceptional items: excluded as they are material in amount; and are outside the normal course of
business or relate to events which do not frequently recur, and therefore merit separate disclosure
in order to provide a better understanding of the Group’s underlying financial performance;
M&A costs (see below); and
Tax on the above items and tax items that themselves meet these definitions. For tax items to be treated
as exceptional, amounts must be material and their treatment as exceptional enable a better
understanding of the Group’s underlying financial performance.
Note also that given the size of the Group’s retained share in the Primient joint venture, the Group’s adjusted
profit before tax excludes its share of any of the above items relating to the Primient joint venture.
M&A costs are excluded as follows:
Amortisation of acquired intangible assets: costs associated with amounts recognised through
acquisition accounting that impact earnings compared to organic investments;
Amortisation of other fair value adjustments on acquisition: costs associated with amounts recognised
through acquisition accounting that impact earnings compared to organic investments; and
Other M&A activity-related items: incremental costs associated with completing a transaction which
include advisory, legal, accounting, valuation and other professional or consulting services as well as
acquisition-related remuneration and directly attributable integration costs incurred in the first 12 months
of the acquisition.
Financial statements
146
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
4. Reconciliation of alternative performance measures continued
Income statement measures continued
The following table shows the reconciliation of the key income statement alternative performance
measures to the most directly comparable measures reported in accordance with UK adopted International
Accounting Standards:
| Year ended 31 March 2024 | Year ended 31 March 2023* | ||||||
| Continuing operations | Adjusting | Adjusted | Adjusting | Adjusted | |||
| £m unless otherwise stated | Reported | items | reported | Reported | items | reported | |
Revenue | 1 647 | – | 1 647 | 1 751 | – | 1 751 | |
EBITDA | 301 | 27 | 328 | 291 | 31 | 322 | |
| Depreciation | (58) | 1 | (57) | (59) | 1 | (58) | |
| Amortisation | (36) | 23 | (13) | (36) | 23 | (13) | |
| Operating profit | 207 | 51 | 258 | 196 | 55 | 251 | |
Net finance expense | (6) | – | (6) | (20) | – | (20) | |
| Share of profit/(loss) of joint | venture | 25 | 10 | 35 | (24) | 48 | 24 |
| Profit before tax | 226 | 61 | 287 | 152 | 103 | 255 | |
Income tax expense | (47) | (15) | (62) | (25) | (25) | (50) | |
| Profit for the year | 179 | 46 | 225 | 127 | 78 | 205 | |
Basic earnings per share (pence) | 45.2p | – | – | 31.3p | – | – | |
Diluted earnings per share (pence) | 44.4p | 11.1p | 55.5p | 30.8p | 18.8p | 49.6p | |
| Effective tax rate expense % | 20.6% | 21.6% | 16.8% | 19.9% |
1
* Restated to include other M&A activity-related items in adjusting items. See page 146.
1 Depreciation includes £1 million (2023 – £1 million) related to the Quantum acquisition fair value adjustments which is excluded from adjusted
operating profit.
The following table shows the reconciliation of the adjusting items impacting adjusted profit for the year:
| Year ended 31 March | |||
| 2024 | 2023* | ||
Continuing operations | Notes | £m | £m |
Exceptional costs included in operating profit | 8 | 24 | 28 |
| M&A costs | 27 | 27 | |
Adjusting items excluded from share of profit of joint venture | 22 | 10 | 48 |
| Total excluded from adjusted profit before tax | 61 | 103 | |
Tax credit on adjusting items | 11 | (15) | (25) |
| Total excluded from adjusted profit for the year | 46 | 78 |
* Restated to include other M&A activity-related items in adjusting items. See page 146.
The following table shows the M&A costs excluded from adjusted profit for the year:
| Year ended 31 March | |||
| 2024 | 2023* | ||
Continuing operations | Note | £m | £m |
Amortisation of acquired intangible assets | 19 | 23 | 23 |
| Unwind of fair value adjustments | 2 | 2 | |
| Other M&A activity-related items | 2 | 2 | |
| Total M&A costs | 27 | 27 |
1
* Restated to include other M&A activity-related items in adjusting items. See page 146.
1 Unwind of fair value adjustments includes depreciation of £1 million (2023 – £1 million) related to Quantum.
Cash flow measure
The Group also presents an alternative cash flow measure, ‘free cash flow’, which is defined as cash
generated from total operations, after net interest and tax paid, after capital expenditure and excluding
the impact of exceptional items.
Net capital expenditure is the net impact of the purchase and sale of property, plant and equipment,
intangible assets and certain equity investments, i.e. capital expenditure is measured on a net basis
(net cash received/paid) for the purpose of the free cash flow definition.
Tax paid refers to tax paid for the Group’s operations excluding any tax paid for its share of the Primient
joint venture’s results. The Group receives specific dividends from Primient in order to settle such tax
liabilities. As all dividends received are excluded from free cash flow, it is appropriate to exclude tax paid
out of the receipt of these dividends.
The following table shows the reconciliation of free cash flow relating to continuing operations:
| Year ended 31 March | ||
| 2024 | 2023* | |
| Continuing operations | £m | £m |
Adjusted operating profit from continuing operations | 258 | 251 |
| Adjusted for: | ||
| Adjusted depreciation and adjusted amortisation | 70 | 71 |
| Share-based payments charge | 13 | 20 |
| Other non-cash movements | (4) | (8) |
| Changes in working capital | 7 | (105) |
| Net retirement benefit obligations | (7) | (9) |
| Net capital expenditure | (110) | (71) |
| Net interest and tax paid | (57) | (28) |
| Free cash flow from continuing operations | 170 | 121 |
1
2
3
4
* Restated to include other M&A activity-related items in adjusting items. See page 146.
1 Total depreciation of £58 million (2023 – £59 million) less £1 million of depreciation related to Quantum acquisition fair value adjustments (2023
– £1 million) and amortisation of £36 million (2023 – £36 million) less £23 million (2023 – £23 million) of amortisation of acquired intangible assets.
2 In the year ended 31 March 2024, other non-cash movements excludes an inflow of £1 million (2023 – inflow of £1 million) for an item not
included in adjusting operating profit.
3 In the year ended 31 March 2023, changes in working capital excludes the 2022 financial year bonus payment of £7 million to employees who
have transitioned to Primient which is classified as a discontinued cash outflow. This impact is partially offset by the increase of a legal
provision relating to discontinued operations. Refer to Note 12.
4 Net interest and tax paid excludes tax payments of £24 million (2023 – £47 million) relating to the Group’s share of Primient’s tax including the
exceptional tax on the gain on disposal of Primient of £12 million (2023 – £42 million).
147
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
4. Reconciliation of alternative performance measures continued
Cash flow measure continued
The following table shows the reconciliation of free cash flow to net cash generated from operating
cash flows:
| Year ended 31 March | |||
| 2024 | 2023* | ||
| Continuing operations | Note | £m | £m |
| Free cash flow from continuing operations | 170 | 121 | |
| Adjusted for: | |||
| Add: free cash flow relating to discontinued operations | – | (7) | |
| Less: exceptional cash flows | 8 | (27) | (59) |
| Less: tax payments relating to Primient and gain on disposal | (24) | (47) | |
| Less: interest received | (19) | (11) | |
| Less: other M&A activity-related items | (2) | (2) | |
| Add: net capital expenditure | 110 | 71 | |
| Net cash generated from operating activities – total operations | 208 | 66 |
* Restated to include other M&A activity-related items in adjusting items. See page 146.
Financial strength measures
The Group uses two financial metrics as key performance measures to assess its financial strength.
These are the net debt to EBITDA ratio, and the return on capital employed ratio.
For the purposes of KPI reporting, the Group uses a simplified calculation of these KPIs to make them more
directly related to information in the Group’s financial statements. The net debt to EBITDA ratio using the
calculation methodology prescribed for financial covenants on the Group’s borrowing facilities is shown
in Note 30.
All ratios are calculated based on unrounded figures in £ million.
The net debt to EBITDA ratio is as follows:
| At 31 March | |||
| 2024 | 2023* | ||
Continuing operations | Note | £m | £m |
| Calculation of net debt to EBITDA ratio | |||
Net debt | 28 | 153 | 238 |
| Adjusted operating profit | 258 | 251 | |
| Add back adjusted depreciation and adjusted amortisation | 70 | 71 | |
| EBITDA | 328 | 322 | |
| Net debt to EBITDA ratio (times) | 0.5 | 0.7 |
* Restated to include other M&A activity-related items in adjusting items. See page 146.
Return on capital employed (ROCE) is a measure of the return generated on capital invested by the Group.
The measure encourages compounding reinvestment within business and discipline around acquisitions;
as such it provides a guard rail for long-term value creation. ROCE is a component of the Group’s five-year
performance ambition to 31 March 2028 and is used in incentive compensation.
ROCE is calculated as underlying operating profit excluding exceptional items and other M&A activity-
related items divided by the average invested operating capital (calculated as the average for each month
of goodwill, intangible assets, property, plant and equipment, working capital, provisions and non-debt
related derivatives). As such the average invested operating capital is derived from the management
balance sheet and does not reconcile directly to the statutory balance sheet. All elements of average
invested operating capital are calculated in accordance with IFRS.
| At 31 March | ||
| 2024 | 2023* | |
| £m | £m | |
| Calculation ROCE | ||
Adjusted operating profit – continuing operations | 258 | 251 |
| Deduct amortisation on acquired intangible assets and other fair value adjustments | (25) | (25) |
| Profit before interest, tax, other M&A activity-related items and exceptional items for ROCE | 233 | 226 |
| Average invested operating capital | 1 343 | 1 278 |
ROCE % | 17.4% | 17.6% |
* Restated to include other M&A activity-related items in adjusting items. See page 146.
Financial statements
148
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
| Food & | Primary | Primient | Year ended 31 March 2024 | |||
| Beverage | Products | Joint | ||||
| Solutions | Sucralose | Europe | Venture | Total | ||
| Total operations | £m | £m | £m | £m | £m | |
Revenue | 1 359 | 174 | 114 | – | 1 647 | |
| Adjusted EBITDA | 281 | 52 | (5) | – | 328 | |
| Adjusted EBITDA margin | 20.7% | 29.8% | (4.8%) | – | 19.9% | |
| Adjusted share of profit of joint venture | – | – | – | 35 | 35 | |
Included within statutory operating profit 2 : | ||||||
| – | depreciation | 43 | 11 | 4 | – | 58 |
| – | amortisation | 34 | 2 | – | – | 36 |
| – | share-based payments | 11 | 2 | – | – | 13 |
149
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
5. Segment information continued
| Food & | Primary | Primient | Year ended 31 March 2023* | |||
| Beverage | Products | Joint | ||||
| Solutions | Sucralose | Europe | Venture | Total | ||
| Total operations | £m | £m | £m | £m | £m | |
Revenue | 1 438 | 184 | 129 | – | 1 751 | |
| Adjusted EBITDA | 273 | 58 | (9) | – | 322 | |
Adjusted EBITDA margin | 18.9% | 31.3% | (6.5%) | – | 18.4% | |
| Adjusted share of profit of joint venture | – | – | – | 24 | 24 | |
Included within statutory operating profit 2 : | ||||||
| – | depreciation | 47 | 10 | 2 | – | 59 |
| – | amortisation | 34 | 2 | – | – | 36 |
| – | share-based payments | 16 | 3 | 1 | – | 20 |
| Year ended 31 March | ||
| 2024 | 2023 | |
| Total operations | £m | £m |
| Food & Beverage Solutions | ||
| North America | 642 | 687 |
| Asia, Middle East, Africa and Latin America | 396 | 432 |
| Europe | 321 | 319 |
| Food & Beverage Solutions – total | 1 359 | 1 438 |
Sucralose – total | 174 | 184 |
Primary Products Europe | 114 | 129 |
Total | 1 647 | 1 751 |
| Year ended 31 March | ||
| 2024 | 2023 | |
| £m | £m | |
| United Kingdom | 26 | 25 |
| United States | 483 | 517 |
| Other European countries | 301 | 279 |
| Rest of the world | 289 | 318 |
| Non-current assets – total operations | 1 099 | 1 139 |
Financial statements
150
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
| Year ended 31 March | |||||||
| 2024 | 2023* | ||||||
| Continuing operations | Notes | £m | £m | ||||
| Revenue | 1 647 | 1 751 | |||||
| Operating expenses | |||||||
| Cost of inventories (included in cost of sales) | 796 | 876 | |||||
| Staff costs (of which £99 million (2023 – £96 million) was included | in | cost | of | sales) | 9 | 262 | 284 |
| Depreciation of property, plant and equipment: | |||||||
| – | owned assets (of which £43 million (2023 – £45 million) was included | ||||||
| in | cost | of | sales) | 49 | 50 | ||
| – | leased assets (of which £1 million (2023 – £1 million) was included | ||||||
| in | cost | of | sales) | 21 | 9 | 9 | |
Exceptional costs | 8 | 24 | 28 | ||||
| Other M&A activity-related items | 4 | 2 | 2 | ||||
| Amortisation of intangible assets: | |||||||
| – | acquired intangible assets | 19 | 23 | 23 | |||
| – | other intangible assets | 19 | 13 | 13 | |||
Impairment of intangible assets | 19 | – | 1 | ||||
Impairment of property, plant and equipment | 20 | 1 | – | ||||
| Total net foreign exchange losses | – | 1 | |||||
| Other operating expenses | 261 | 268 | |||||
| Operating expenses | 1 440 | 1 555 | |||||
| Operating profit | 207 | 196 | |||||
| Year ended 31 March | |||
| 2024 | 2023 | ||
| £m | £m | ||
Fees payable for the audit of the Company and consolidated financial statements | 1.3 | 1.7 | |
| Fees payable for other services: | |||
| – | the audit of the Company’s subsidiaries | 1.8 | 1.7 |
| – | audit-related assurance services | 0.1 | 0.1 |
| Total | 3.2 | 3.5 |
8. Exceptional items
Refer to Note 2 for the exceptional items accounting policy.
Exceptional (costs)/income recognised in the consolidated income statement are as follows:
| Year ended 31 March | |||
| 2024 | 2023 | ||
| Continuing operations | Footnotes | £m | £m |
| Income statement | |||
Restructuring costs | (a) | (21) | (5) |
Costs associated with the separation and disposal of Primient | (b) | (4) | (25) |
| Stabiliser product contamination | 1 | (1) | |
| Historical legal matters | – | 3 | |
| Exceptional items included in operating profit | (24) | (28) | |
| Exceptional items related to share of profit of joint venture (see Note 22) | (1) | (52) | |
| Exceptional items included in profit before tax | (25) | (80) | |
| Exceptional items – continuing operations | (25) | (80) |
| Year ended 31 March | |||
| 2024 | 2023 | ||
| Discontinued operations | Note | £m | £m |
Gain on disposal of Primient | 12 | – | 98 |
| Exceptional items – discontinued operations | – | 98 | |
| Exceptional items – total operations | (25) | 18 |
Set out below are the principal components of the Group’s exceptional items:
Continuing operations
(a) As part of the Group’s previously announced commitment to deliver US$100 million of productivity
savings in the five years ending 31 March 2028, a £21 million charge has been recognised in the year
ended 31 March 2024, related to organisational improvements to the Food & Beverage Solutions
business and activities to drive productivity savings. This charge includes severance costs, project
costs and information technology (IT) initiatives. Included in this amount is a £4 million charge relating
to a programme of digital restructuring. These costs relate principally to an incremental IT-capabilities
investment programme to leverage digital technologies to improve the Group’s end-to-end customer
and employee experience, and to drive efficiency savings.
(b) The Group incurred certain separation costs related to the Primient disposal which totalled £4 million.
These costs relate principally to IT costs in respect of the final separation of IT infrastructure following
the cessation of the transition services arrangement for IT support to Primient at the end of the prior
financial year.
All exceptional items (excluding those recognised by the Primient joint venture) were recognised in the
Food & Beverage Solutions reportable segment.
The most significant exceptional costs in the comparative year related to the Primient disposal separation
costs, including IT costs to separate the Group’s and Primient’s IT.
151
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
8. Exceptional items continued
Continuing operations continued
Tax credits or charges on exceptional items are only recognised to the extent that gains or losses incurred
are expected to result in tax recoverable or payable in the future. The total tax impact of these exceptional
items was a tax credit of £7 million (2023 – £6 million). Refer to Note 11.
Discontinued operations
In the year ended 31 March 2023, the Group recorded a gain of £98 million relating to the disposal on
1 April 2022 of a 50.1% controlling interest in Primient in exchange for gross cash proceeds of US$1.4 billion
(£1.1 billion). An exceptional tax charge of £33 million arose on this gain. Further details on the gain
on disposal, and the associated tax charge, are set out in Note 12.
Cash flows from total operations
Exceptional costs recorded in operating profit in continuing operations during the year resulted in £21 million
(outflow) disclosed in exceptional operating cash flow. Exceptional costs recorded in the prior year resulted
in further cash outflows during the year of £6 million. Further details in respect of cash flows from
exceptional items are set out below:
| Year ended 31 March | |||
| 2024 | 2023 | ||
Net operating cash (outflows)/inflows on exceptional items | Footnotes | £m | £m |
Restructuring costs | (a) | (18) | (3) |
Costs associated with the separation and disposal of Primient | (b) | (7) | (52) |
US pension plan past service credit | (c) | (1) | (1) |
| Stabiliser product contamination | 1 | (1) | |
| Historical legal matters | (2) | (2) | |
| Net cash outflows – continuing operations | (27) | (59) | |
| Net cash outflows – discontinued operations | (12) | (42) | |
| Net cash outflows – total operations | (39) | (101) |
Additional details are included for the following item:
(c) In the 2022 financial year, a plan amendment to the Group’s US pension plans resulted in a past service
credit of £13 million, with the Group agreeing to make incremental contributions of £4 million (resulting
in a net exceptional credit of £9 million). Incremental contributions were paid in the prior year and 2022
financial year, with the remaining £1 million paid in the current financial year.
Exceptional cash flows
The total cash adjustment relating to exceptional items presented in the cash flow statement of £3 million
(outflow) (2023 – £129 million (outflow)) reflects the net exceptional charge in profit before tax for total
operations of £24 million (2023 – net exceptional gain of £70 million) which was £3 million lower (2023 –
£129 million higher) than net cash outflows of £27 million (2023 – £59 million) set out in the table above.
The Group also paid £12 million (2023 – £42 million) of exceptional tax on the gain on disposal of Primient
(see Note 12).
9. Staff costs
Staff costs were as follows:
| Year ended 31 March | |||
| 2024 | 2023 | ||
| Continuing operations | £m | £m | |
| Wages and salaries | 220 | 229 | |
| Social security costs | 27 | 31 | |
| Retirement benefit costs: | |||
| – | defined contribution schemes | 13 | 10 |
| Share-based payments | 13 | 20 | |
| Staff costs – continuing operations | 273 | 290 |
The average number of people employed by the Company and its subsidiaries, including part-time
employees, is set out below:
| Year ended 31 March | ||
By operating segment | 2024 | 2023 |
| Food & Beverage Solutions | 3 316 | 3 455 |
Sucralose 1 | 115 | 117 |
Primary Products Europe 2 | – | – |
| Total | 3 431 | 3 572 |
1
1 The Food & Beverage Solutions and Sucralose segments operate with a single commercial team. It is not practicable to split this team
between the two segments, and therefore the entire headcount of the commercial team has been included within the Food & Beverage
Solutions segment.
2 The Primary Products Europe segment does not have any dedicated employees. The Global Operations employees in European plants
are used for production in both the Food & Beverage Solutions and Primary Products Europe segments. It is not practicable to split this team
between the two segments, and therefore this entire headcount has been included within the Food & Beverage Solutions segment.
At 31 March 2024, the Group employed 3,318 people (2023 – 3,604 people).
| Year ended 31 March | ||
| 2024 | 2023 | |
| £m | £m | |
| Salaries and short-term employee benefits | 7 | 11 |
| Retirement benefits | 1 | 1 |
| Share-based payments | 7 | 10 |
| Total | 15 | 22 |
Financial statements
152
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
| Year ended 31 March | |||
| 2024 | 2023 | ||
Continuing operations | Notes | £m | £m |
| Interest payable on bank and other borrowings | (20) | (27) | |
Lease interest | 21 | (2) | (2) |
Net retirement benefit interest | 31 | (3) | (3) |
| Finance expense | (25) | (32) | |
| Finance income – income on cash balances | 19 | 12 | |
| Net finance expense | (6) | (20) |
| Year ended 31 March | ||
| 2024 | 2023 | |
| Continuing operations | £m | £m |
| Current tax | ||
| United Kingdom | (5) | (1) |
| Overseas | (76) | (66) |
| Tax credit on exceptional items | 8 | 6 |
| Credit in respect of previous financial years | 2 | 16 |
| (71) | (45) | |
| Deferred tax | ||
| Credit for the year | 21 | 13 |
| Credit/(charge) in respect of previous financial years | 4 | (6) |
| Tax charge on exceptional items | (1) | – |
| Tax credit on Primient exceptional items | – | 13 |
| Income tax expense | (47) | (25) |
| Statutory effective tax rate (%) | 20.6% | 16.8% |
| Year ended 31 March | ||||
| 2024 | 2023* | |||
| Continuing operations | Note | £m | £m | |
| Income tax expense | (47) | (25) | ||
| Add back the impact of: | ||||
| Tax credit on exceptional items | (7) | (6) | ||
| Tax credit on Primient exceptional items | – | (13) | ||
| Tax credit on amortisation of acquired intangibles and other fair value | ||||
| adjustments | (6) | (7) | ||
Tax (credit)/charge on amortisation of Primient acquired intangibles and other fair value | adjustments | (2) | 1 | |
Adjusted income tax expense | 4 | (62) | (50) | |
| Adjusted effective tax rate (%) | 21.6% | 19.9% |
153
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
11. Income taxes continued
The Group’s current and deferred tax balances are subject to estimation uncertainty, which could also
impact the effective tax rate in the next financial year. The specific sources of estimation uncertainty related
to income taxes are disclosed in Note 2.
In addition to these specific sources of estimation uncertainty, the tax rate for this year has been impacted
by the tax on exceptional items and its impact on the Group’s geographical mix of profits. This year’s tax
rate has been impacted by the UK corporation tax rate increasing from 19% to 25% which was effective from
the start of the financial year. UK deferred tax assets have been calculated based on the 25% in the current
and prior year.
The Group’s future tax charge and effective tax rate could be affected by several factors, including changes
in tax laws and their interpretation, the implementation of the OECD Pillars One and Two.
Pillar Two legislation has been enacted or substantially enacted in certain jurisdictions in which the Group
operates. The legislation will be effective for the Group’s financial year beginning 1 April 2024. The Group is
in scope of the enacted legislation and has performed an assessment of the Group’s potential exposure to
Pillar Two income taxes.
The assessment of the potential exposure to Pillar Two income taxes is based on the tax calculation
as included in the consolidated financial statements, country-by-country reporting and financial data
(as consolidated) for the constituent entities in the Group. Based on this assessment, the Pillar Two effective
tax rates in most of the jurisdictions in which the Group operates are above 15%. However, there are a
limited number of jurisdictions where the transitional safe harbour relief does not apply and the Pillar Two
effective tax rate is close to 15%. The Group does not expect a material exposure to Pillar Two income taxes
in those jurisdictions.
Reconciliation of the effective tax rate
As the Group’s head office and Parent Company are domiciled in the UK, the Group uses the UK
corporation tax rate to reference its effective tax rate, notwithstanding that only a small proportion of the
Group’s business is in the UK. The tax on the Group’s profit before tax differs from the standard rate of
corporation tax in the UK as follows:
| Year ended 31 March | |||
| 2024 | 2023 | ||
| Continuing operations | £m | £m | |
| Profit before tax | 226 | 152 | |
| Corporation tax charge thereon at 25% (2023 – 19%) | (57) | (29) | |
| Adjusted for the effects of: | |||
| – | non-deductible income and other permanent items | (8) | (14) |
| – | adjustments in respect of previous financial year | 6 | 10 |
| – | losses and tax credits now treated as being recoverable in future periods | 7 | 10 |
| – | changes in tax rates | – | 1 |
| – | tax rates below/(above) the UK rate applied on overseas earnings | 5 | (3) |
| Total tax charge | (47) | (25) |
1
2
3
1 Adjustments in respect of prior years reflect the movement in relation to the closure of outstanding tax audits, corrections to submitted tax
computations and the movement of uncertain tax positions.
2 Where the Group now reasonably believes it is able to recover losses not previously expected to be recovered against future taxable profits,
these losses are recognised. This has the effect of decreasing the Group’s overall effective tax rate.
3 The Group is subject to tax rates in the jurisdictions in which it operates which can be above or below the UK corporation tax rate (the Group’s
reference rate). In the year ended 31 March 2024, the increase in the UK tax rate to 25% and the impact of tax credits in the US resulted in a
favourable impact in this category.
Analysis of exceptional and other adjusting tax items
An analysis of tax charged or credited on adjusting items and exceptional tax items within continuing
operations is set out on the next page:
Financial statements
154
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
11. Income taxes continued
| Year ended 31 March 2024 | Year ended 31 March 2023* | |||||
| Tax credit/ | ||||||
| Pre-tax | Tax credit | Pre-tax | (charge) | |||
Continuing operations | Notes | £m | £m | £m | £m | |
| Exceptional items | ||||||
Restructuring costs | 8 | (21) | 5 | (5) | 1 | |
| Costs associated with the separation and disposal | ||||||
of Primient | 8 | (4) | 2 | (25) | 6 | |
Stabiliser product contamination | 8 | 1 | – | (1) | – | |
Historical legal matters | 8 | – | – | 3 | (1) | |
| Exceptional items included in profit before tax | (24) | 7 | (28) | 6 | ||
Group share of exceptional items recognised by joint venture | 22 | (1) | – | (52) | 13 | |
Amortisation of acquired intangible assets and other fair value adjustments | (25) | 6 | (25) | 7 | ||
| Other M&A activity-related items | (2) | – | (2) | – | ||
| Amortisation of Primient acquired intangibles | ||||||
| and | other fair value adjustments | 22 | (9) | 2 | 4 | (1) |
Total adjusting items – continuing operations | 4 | (61) | 15 | (103) | 25 | |
| Discontinued operations | ||||||
Gain on disposal of Primient | 8, 12 | – | 9 | 98 | (33) | |
| Exceptional items – discontinued operations | – | 9 | 98 | (33) | ||
| Total adjusting items – total operations | (61) | 24 | (5) | (8) |
* Restated to include other M&A activity-related items in adjusting items. See Note 4.
| Capital | ||||||||||
| allowances | Retirement | Share- | ||||||||
| in excess of | benefit | based | Tax | |||||||
| Investments | depreciation | obligations | payments | losses | Other | Total | ||||
| £m | £m | £m | £m | £m | £m | £m | ||||
At 1 April 2022 | – | (73) | 24 | 4 | 22 | (19) | (42) | |||
| Credited/(charged) to the | income | statement | ||||||||
| – | underlying | 22 | (3) | (1) | 2 | (10) | 6 | 16 | ||
| – | exceptional items – | |||||||||
| Disposal of Primient | (78) | 63 | (5) | – | – | 48 | 28 | |||
| – | Credited to other | |||||||||
| comprehensive income | 6 | – | – | – | – | – | 6 | |||
Credited directly to equity | – | – | – | 1 | – | 5 | 6 | |||
Acquisition of businesses | – | – | – | – | – | (24) | (24) | |||
| Currency translation | differences | – | (8) | 1 | – | 3 | (3) | (7) | ||
At 31 March 2023 | (50) | (21) | 19 | 7 | 15 | 13 | (17) | |||
| Credited/(charged) to the | income | statement | ||||||||
| – | underlying | 9 | 4 | – | 2 | 2 | 8 | 25 | ||
| – | exceptional items | (1) | – | – | – | – | – | (1) | ||
| – | exceptional items – | |||||||||
| (Charged)/credited to | Disposal of Primient | 6 | – | – | – | – | – | 6 | ||
| other comprehensive | ||||||||||
| income | (1) | – | (4) | – | – | 1 | (4) | |||
| Credited directly to equity | – | – | – | (1) | – | (1) | (2) | |||
| Currency translation | differences | 2 | 1 | (1) | (1) | – | 1 | 2 | ||
| At 31 March 2024 | (35) | (16) | 14 | 7 | 17 | 22 | 9 | |||
155
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
11. Income taxes continued
Deferred tax continued
Changes in tax rates/tax law
The UK’s main corporation tax rate increased from 19% to 25% on 1 April 2023.
Tax on items recognised in other comprehensive income
The total tax on other comprehensive income was a charge of £4 million (2023 – £6 million credit).
Thisincluded charges to deferred tax on retirement benefit obligations of £4 million (2023 – £nil), a credit
todeferred tax on financial instruments of £1 million (2023 – £nil) and a Primient charge of £1 million
(2023–£6million credit).
Tax on items recognised directly in equity
The total tax charge in equity was £3 million (2023 – £7 million credit). This included deferred tax charge
relating to financial instruments of £1 million (2023 – £5 million credit), a deferred tax charge on share-based
payments of £1 million (2023 – £1 million credit) and a £1 million current tax charge on share-based payments
(2023– £1 million credit).
Financial statements
156
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
12. Discontinued operations continued
| Year ended 31 March | ||
| Discontinued operations | 2024 | 2023* |
| £ million unless otherwise stated | £m | £m |
Revenue | – | – |
Operating income | – | 96 |
Operating profit | – | 96 |
Finance expense | – | – |
| Share of profit after tax of joint venture | – | – |
| Profit before tax | – | 96 |
Income tax credit/(expense) | 9 | (33) |
| Profit for the year from discontinued operations | 9 | 63 |
Basic earnings per share from discontinued operations (pence) | 2.1p | 15.7p |
Diluted earnings per share from discontinued operations (pence) | 2.1p | 15.4p |
| Year ended 31 March | ||
| 2024 | 2023 | |
| Discontinued operations | £m | £m |
| Operating | (12) | (49) |
| Investing | 12 | 1 045 |
| Net cash inflow | – | 996 |
Year ended 31 March 2024 | Year ended 31 March 2023 | |||||
| Discontinued operations | Adjusting | Adjusted | Adjusting | Adjusted | ||
| £ million unless otherwise stated | Reported | items | reported | Reported | items | reported |
Revenue | – | – | – | – | – | – |
EBITDA | – | – | – | 96 | (98) | (2) |
Depreciation | – | – | – | – | – | – |
| Amortisation | – | – | – | – | – | – |
| Operating profit/(loss) | – | – | – | 96 | (98) | (2) |
Finance expense | – | – | – | – | – | – |
| Share of profit after tax of joint venture | – | – | – | – | – | – |
| Profit/(loss) before tax | – | – | – | 96 | (98) | (2) |
Income tax credit/(expense) | 9 | (9) | – | (33) | 33 | – |
| Profit/(loss) for the year | 9 | (9) | – | 63 | (65) | (2) |
Basic earnings per share (pence) | 2.1p | – | – | 15.7p | (16.1p) | (0.4p) |
Diluted earnings per share (pence) | 2.1p | – | – | 15.4p | (15.8p) | (0.4p) |
Effective tax rate % | n/a | – | 34.0% | 25.4% |
| Year ended 31 March | ||
| 2024 | 2023 | |
| Discontinued operations | £m | £m |
| Exceptional income in operating profit | – | (98) |
| Total excluded from adjusted operating profit | – | (98) |
| Total excluded from adjusted profit before tax | – | (98) |
| Tax effect of adjusting items | – | 33 |
| Exceptional tax credit | (9) | – |
| Total excluded from adjusted profit for the year | (9) | (65) |
157
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
12. Discontinued operations continued
Discontinued operations continued
| Year ended | |||
| 31 March | |||
| 2023 | |||
| £m | |||
Adjusted operating profit from discontinued | operations | (2) | |
| Adjusted for: | |||
Changes in working capital and other non-cash movements | (5) | ||
| Net interest and tax paid | – | ||
| Free cash flow from discontinued | operations | (7) |
| Year ended 31 March | ||
| 2023 | 2023 | |
| Gross cash received (in US dollars and pound sterling) | US$m | £m |
Cash consideration – as shown in gain on disposal table below | 330 | 253 |
Less: completion accounts adjustments in favour of the Group not yet received | (15) | (12) |
| Add: cash received for intercompany loan notes, payables and transaction costs | 1 089 | 830 |
| Add: contingent consideration received | 31 | 24 |
| Disposal of Primient, gross proceeds | 1 435 | 1 095 |
| Year ended | |||
| 31 March | |||
| 2023 | |||
Gain on disposal | Notes | £m | |
| Cash consideration – as shown in table opposite | 253 | ||
| Contingent consideration received | 24 | ||
Fair value of investment in Primient joint venture on initial recognition | 22 | 253 | |
| Total consideration for equity | 530 | ||
| Primient net assets derecognised on disposal on 1 April | (539) | ||
Recycling of accumulated foreign exchange from other comprehensive income to the income | statement | 81 | |
| Recycling of cash flow hedges from other comprehensive income to the income statement | 48 | ||
| Impact of deal contingent forward | (33) | ||
| Other amounts | 11 | ||
Gain on disposal before tax | 8 | 98 | |
| Tax on gain on disposal | (33) | ||
| Gain on disposal | 65 |
Financial statements
158
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
12. Discontinued operations continued
Primient disposal continued
| Year ended 31 March | ||
| 2024 | 2023 | |
| Cash flows | £m | £m |
| Total cash consideration of £253 million less completion accounts adjustment | ||
| not yet received of £12 million – as shown above | – | 241 |
Completion accounts adjustment received | 12 | – |
| Repayment of intercompany loan notes and payables and transaction costs | – | 830 |
| Less: cash outflow relating to deal contingent forward | – | (33) |
| Less: net cash derecognised on disposal | – | (17) |
| Add: contingent consideration received – as shown above | – | 24 |
| Disposal of business, net of cash derecognised on disposal | 12 | 1 045 |
Year ended 31 March 2024 | Year ended 31 March 2023 | ||||||
| Continuing | Discontinued | Total | Continuing | Discontinued | Total | ||
| Profit attributable to owners of the | operations | operations | operations | operations | operations | operations | |
| Company (£ | million) | 179 | 9 | 188 | 127 | 63 | 190 |
| Weighted average number | |||||||
| of | ordinary shares (million) | ||||||
| – | basic | 397.1 | 397.1 | 397.1 | 404.1 | 404.1 | 404.1 |
| Basic earnings per share (pence) | 45.2p | 2.1p | 47.3p | 31.3p | 15.7p | 47.0p | |
| Weighted average number | |||||||
| of | ordinary shares (million) | ||||||
| – | diluted | 404.2 | 404.2 | 404.2 | 411.4 | 411.4 | 411.4 |
| Diluted earnings per share (pence) | 44.4p | 2.1p | 46.5p | 30.8p | 15.4p | 46.2p | |
| Year ended 31 March | ||||
| 2024 | 2023 | |||
| Calculation of weighted average number of ordinary shares | Million | Million | ||
Weighted average number of ordinary shares – basic | 397.1 | 404.1 | ||
| Effects of dilution from: | ||||
| – | Sharesave plan | 0.1 | 0.1 | |
| – | Performance share plan/Restricted share awards/Group Bonus plan – deferred | element | 7.0 | 7.2 |
| Weighted average number of ordinary shares – diluted | 404.2 | 411.4 |
The decrease in weighted average number of shares compared to the comparative year is due to the share
consolidation in May 2022 which resulted in ordinary shareholders receiving six new ordinary shares with
a nominal value of 29
1
/
6
pence each for every seven existing ordinary shares that they held. The share
consolidation was completed at the same time as the Group returned £497 million to ordinary shareholders
by way of a special dividend. The share consolidation was executed in order to maintain the comparability,
so far as possible, of Tate & Lyle PLC’s share price before and after the special dividend.
159
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
13. Earnings per share continued
Adjusted earnings per share
A reconciliation between profit attributable to owners of the Company from continuing operations, total
operations and the equivalent adjusted measure, together with the resulting adjusted earnings per share
measure, is shown below:
| Year ended 31 March | ||||
| 2024 | 2023* | |||
| Continuing operations | Notes | £m | £m | |
| Profit attributable to owners of the Company | 179 | 127 | ||
| Adjusting items: | ||||
| – | exceptional costs in operating profit | 8 | 24 | 28 |
| – | M&A costs | 4 | 27 | 27 |
| – | adjusting items excluded from share of profit of joint venture | 22 | 10 | 48 |
| – | tax credit on adjusting items | 11 | (15) | (25) |
Adjusted profit attributable to owners of the Company | 4 | 225 | 205 | |
| Weighted average number of ordinary shares (million) – diluted | 404.2 | 411.4 | ||
| Adjusted earnings per share (pence) – continuing operations | 55.5p | 49.6p |
* Restated to include other M&A activity-related items in adjusting items. See Note 4.
| Year ended 31 March | ||||
| 2024 | 2023* | |||
| Total operations | Notes | £m | £m | |
Adjusted profit attributable to owners of the Company – continuing operations | 4 | 225 | 205 | |
| Adjusted loss attributable to owners of the Company – discontinued | operations | 12 | – | (2) |
| Adjusted profit attributable to owners of the Company – total | operations | 225 | 203 | |
| Adjusted earnings per share (pence) – total operations | 55.5p | 49.2p |
* Restated to include other M&A activity-related items in adjusting items. See Note 4.
| Year ended 31 March | |||
| 2024 | 2023 | ||
| Pence | Pence | ||
| Per ordinary share: | |||
| – | interim dividend paid | 6.2 | 5.4 |
| – | final dividend proposed | ||
| Total dividend | 19.1 | 18.5 |
| Year ended 31 March | ||
| 2024 | 2023 | |
| £m | £m | |
Final dividend paid relating to the prior financial year | 52 | 51 |
| Interim dividend paid relating to the financial year | 24 | 22 |
| Total dividend paid relating to prior and current financial year | 76 | 73 |
Special dividend | – | 497 |
| Total dividend paid | 76 | 570 |
Financial statements
160
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
| 2024 | 2023 | |
| £m | £m | |
Raw materials and consumables | 106 | 130 |
Work in progress | 20 | 38 |
| Finished goods | 227 | 278 |
| Total | 353 | 446 |
16. Cash and cash equivalents
| At 31 March | ||
| 2024 | 2023 | |
| £m | £m | |
Short-term highly liquid investments | 330 | 392 |
Cash at bank | 107 | 83 |
| Cash and cash equivalents | 437 | 475 |
The carrying amount of cash and cash equivalents was denominated in the following currencies:
| At 31 March | ||
| 2024 | 2023 | |
| £m | £m | |
US dollar | 363 | 404 |
Euro | 4 | 6 |
| Sterling | 14 | 18 |
| Other | 56 | 47 |
| Total | 437 | 475 |
| At 31 March | ||
| 2024 | 2023 | |
| £m | £m | |
| Trade receivables | 240 | 290 |
| Less loss allowance provision | (7) | (12) |
| Trade receivables – net | 233 | 278 |
| Prepayments and accrued income | 16 | 16 |
| Other receivables | 45 | 57 |
| Total | 294 | 351 |
| At 31 March | ||
| 2024 | 2023 | |
| £m | £m | |
| US dollar | 176 | 190 |
| Euro | 68 | 104 |
| Sterling | 8 | 11 |
| Other | 53 | 57 |
| Total | 305 | 362 |
161
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
17. Trade and other receivables continued
| Greater | At 31 March 2024 | ||||
| 30 – 60 | 60 – 90 | than 90 | |||
| days | days | days | |||
£ million unless otherwise stated | Current | past due | past due | past due | Total |
| Expected loss rate % | 1% | 46% | – | 84% | |
| Gross carrying amount | 233 | 2 | – | 5 | 240 |
| Loss allowance provision | 2 | 1 | – | 4 | 7 |
| At 31 March 2023 | |||||
Expected loss rate % | 1% | 1% | 19% | 100% | |
Gross carrying amount | 262 | 16 | 2 | 10 | 290 |
Loss allowance provision | 2 | – | – | 10 | 12 |
| Year ended 31 March | ||
| 2024 | 2023 | |
| £m | £m | |
| At 1 April | 12 | 12 |
Utilisation of provision | (7) | – |
Change in loss allowance recognised in the income statement | 2 | – |
| At 31 March | 7 | 12 |
| Financial | Financial | Total | ||
| assets | assets | investments | ||
| at FVPL | at FVOCI | in equities | ||
| £m | £m | £m | ||
At 1 April 2023 | 20 | 22 | 42 | |
| Total gains/(losses) | ||||
| – | in operating profit | – | – | – |
| – | in other comprehensive income | – | (17) | (17) |
| Re-measurement of non-qualified deferred compensation arrangements | 3 | – | 3 | |
| Purchases | 2 | 1 | 3 | |
| Disposals | (3) | – | (3) | |
| At 31 March 2024 | 22 | 6 | 28 | |
At 1 April 2022 | 20 | 26 | 46 | |
| Total gains/(losses) | ||||
| – | in operating profit | – | – | – |
| – | in other comprehensive income | – | 3 | 3 |
Re-measurement of non-qualified deferred compensation arrangements | (2) | – | (2) | |
Purchases | 3 | – | 3 | |
Disposals | (3) | (7) | (10) | |
Currency translation differences | 2 | – | 2 | |
At 31 March 2023 | 20 | 22 | 42 | |
Financial statements
162
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
18. Investments in equities continued
| At 31 March | ||
| 2024 | 2023 | |
| £m | £m | |
US dollar | 26 | 40 |
Sterling | 1 | 2 |
| Euro | 1 | – |
| Total | 28 | 42 |
163
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
19. Goodwill and other intangible assets continued
| Other | Product | |||||
| acquired | Computer | development | Assets under | |||
| Goodwill | intangibles | software | costs | construction | Total | |
| £m | £m | £m | £m | £m | £m | |
| Cost | ||||||
At 1 April 2023 | 318 | 310 | 59 | 143 | 14 | 844 |
| Additions at cost | – | – | – | 2 | 7 | 9 |
| Disposals and write-offs | – | – | (1) | – | – | (1) |
| Transfers on completion | – | 1 | – | 4 | (5) | – |
| Currency translation differences | (12) | (12) | (1) | (4) | – | (29) |
| At 31 March 2024 | 306 | 299 | 57 | 145 | 16 | 823 |
Accumulated amortisation and impairment | ||||||
At 1 April 2023 | 10 | 213 | 47 | 122 | – | 392 |
| Impairment charge | – | – | – | – | – | – |
| Amortisation charge | – | 23 | 6 | 7 | – | 36 |
| Disposals and write-offs | – | – | (1) | – | – | (1) |
| Currency translation differences | – | (6) | (1) | (3) | – | (10) |
| At 31 March 2024 | 10 | 230 | 51 | 126 | – | 417 |
Net book value at 31 March 2024 | 296 | 69 | 6 | 19 | 16 | 406 |
| Other | Product | ||||||
| acquired | Computer | development | Assets under | ||||
| Goodwill | intangibles | software | costs | construction | Total | ||
| £m | £m | £m | £m | £m | £m | ||
| Cost | |||||||
At 1 April 2022 | 213 | 216 | 53 | 127 | 22 | 631 | |
Additions at cost | – | – | – | 3 | 5 | 8 | |
Subsidiary acquired | 96 | 96 | – | – | – | 192 | |
Disposals and write-offs | – | (10) | – | – | (2) | (12) | |
Transfers on completion | – | 1 | 4 | 7 | (12) | – | |
Currency translation differences | 9 | 7 | 2 | 6 | 1 | 25 | |
At 31 March 2023 | 318 | 310 | 59 | 143 | 14 | 844 | |
| Accumulated amortisation | |||||||
and At 1 April 2022 | impairment | 10 | 192 | 41 | 110 | – | 353 |
Impairment charge | – | – | – | – | 1 | 1 | |
Amortisation charge | – | 23 | 6 | 7 | – | 36 | |
Disposals and write-offs | – | (10) | – | – | (1) | (11) | |
Currency translation differences | – | 8 | – | 5 | – | 13 | |
At 31 March 2023 | 10 | 213 | 47 | 122 | – | 392 | |
Net book value at 31 March 2023 | 308 | 97 | 12 | 21 | 14 | 452 |
| At 31 March | ||
| 2024 | 2023 | |
| £m | £m | |
| Allocated by operating segment | ||
Food & Beverage Solutions | 208 | 213 |
| Goodwill allocated to operating segments | 208 | 213 |
Goodwill allocated to Quantum Hi-Tech (Guangdong) Biological Co., Ltd | 88 | 95 |
Goodwill – total operations | 296 | 308 |
Financial statements
164
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
19. Goodwill and other intangible assets continued
165
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
20. Property, plant and equipment continued
| Assets in the | ||||
| Land and | Plant and | course of | ||
| buildings | machinery | construction | Total | |
| £m | £m | £m | £m | |
Cost | 321 | 1 074 | 89 | 1 484 |
| At 1 April 2023 | ||||
| Additions at cost | 4 | 6 | 104 | 114 |
| Transfers on completion | 7 | 43 | (50) | – |
| Disposals and write-offs | (7) | (6) | (1) | (14) |
| Currency translation differences and other movements | (9) | (31) | (3) | (43) |
| At 31 March 2024 | 316 | 1 086 | 139 | 1 541 |
| Accumulated depreciation and impairment | ||||
At 1 April 2023 | 158 | 838 | – | 996 |
| Depreciation charge | 16 | 42 | – | 58 |
| Impairment charge | – | – | 1 | 1 |
| Disposals and write-offs | (7) | (6) | (1) | (14) |
| Currency translation differences and other movements | (5) | (23) | – | (28) |
| At 31 March 2024 | 162 | 851 | – | 1 013 |
Net book value at 31 March 2024 | 154 | 235 | 139 | 528 |
| Cost | ||||
At 1 April 2022 | 285 | 979 | 64 | 1 328 |
Additions at cost | 6 | 4 | 70 | 80 |
Subsidiary acquired | 12 | 7 | 1 | 20 |
Transfers on completion | 7 | 40 | (47) | – |
Disposals and write-offs | (2) | (8) | – | (10) |
Currency translation differences and other movements | 13 | 52 | 1 | 66 |
At 31 March 2023 | 321 | 1 074 | 89 | 1 484 |
| Accumulated depreciation and impairment | ||||
At 1 April 2022 | 138 | 759 | – | 897 |
Depreciation charge | 15 | 44 | – | 59 |
Impairment charge | – | – | – | – |
Disposals and write-offs | (2) | (8) | – | (10) |
Currency translation differences and other movements | 7 | 43 | – | 50 |
At 31 March 2023 | 158 | 838 | – | 996 |
Net book value at 31 March 2023 | 163 | 236 | 89 | 488 |
Amounts relating to right-of-use assets under IFRS 16, which are included in the amounts opposite, are
presented in more detail in Note 21. In the consolidated statement of cash flows, cash outflows relating
to purchase of property, plant and equipment are lower than the amount of additions in this table primarily
due to the inclusion of right-of-use assets in the figures above.
Financial statements
166
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
21. Leases continued
The movements in the carrying value of the Group’s right-of-use assets are summarised as follows:
| Land and | Plant and | ||
| buildings | machinery | Total | |
| £m | £m | £m | |
| Right-of-use assets | |||
At 1 April 2022 | 36 | 4 | 40 |
Additions to right-of-use assets | 4 | 2 | 6 |
Depreciation charge | (7) | (2) | (9) |
Impairment | – | – | – |
Currency translation differences | 2 | – | 2 |
At 31 March 2023 | 35 | 4 | 39 |
Additions to right-of-use assets | 3 | 2 | 5 |
Depreciation charge | (6) | (3) | (9) |
| Impairment | – | – | – |
| Currency translation differences | – | (1) | (1) |
| At 31 March 2024 | 32 | 2 | 34 |
The consolidated income statement includes the following amounts relating to leases:
| Year ended 31 March | ||
| 2024 | 2023 | |
| £m | £m | |
Depreciation expense of right-of-use assets | 9 | 9 |
Interest expense on lease liabilities | 2 | 2 |
| Expense relating to short-term leases | – | – |
| Expense relating to leases of low-value assets | – | – |
| Expense relating to variable lease payments not included in the measurement of lease liability | – | – |
| Income from sub-leasing right-of-use assets | – | 2 |
11 | 13 |
The cash outflow for leases in the year ended 31 March 2024 was £13 million (2023 – £13 million), excluding
cash outflow of £nil (2023 – £nil) relating to leases of low-value items. The movement in the lease liability
balances is shown in Note 28 and the undiscounted maturity is shown in Note 30.
The Group has several lease contracts that include extension and termination options. The Group has
estimated that the potential future lease payments, should it exercise the extension option, would result in
an increase in lease liability of £nil million (2023 – £1 million). The future cash outflows relating to leases that
have not yet commenced are disclosed in Note 34.
Lease terms are negotiated on an individual basis and contain a wide range of different terms and
conditions. These options are negotiated by management to provide flexibility in managing the leased-
asset portfolio and align with the Group’s business needs. Management assesses whether these extension
and termination options are reasonably certain to be exercised.
The lease agreements do not impose any covenants other than the security interests in the leased assets
that are held by the lessor. Leased assets may not be used as security for borrowing purposes.
167
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
22. Investments in joint venture continued
| Year ended 31 March | |||
| Primient | Primient | ||
| 2024 | 2023 | ||
| Note | £m | £m | |
| At 1 April | 199 | – | |
| Fair value of investment in joint venture on initial recognition | – | 253 | |
| Share of profit/(loss) profit of joint venture | 25 | (24) | |
Other comprehensive income/(expense) (including foreign exchange) | 24 | 2 | (5) |
| Dividends paid | (59) | (41) | |
| Other movements (including contributions) | (2) | 17 | |
| Share redemption | – | (1) | |
| At 31 March | 165 | 199 |
| Year ended | Year ended | |
| 31 March | 31 March | |
| 2024 | 2023 | |
| Primient | £m | £m |
| At 100% | ||
| Revenue | 2 249 | 2 552 |
| Depreciation and amortisation | (104) | (85) |
| Other expenses | (1 970) | (2 329) |
| Exceptional items | (2) | (61) |
| Net finance expense | (92) | (80) |
| Profit/(loss) before tax | 81 | (3) |
Income tax expense 1 | (12) | (6) |
| Profit/(loss) after tax at 100% | 69 | (9) |
| Other comprehensive expense at 100% | (1) | (41) |
| Total comprehensive income/(expense) at 100% | 68 | (50) |
| At 49.7% | ||
| Group’s share of profit/(loss) for the year | 34 | (4) |
| Amortisation of fair value adjustments on initial recognition of Primient | (9) | (17) |
| Other Group adjustments | – | (3) |
| Group’s share of profit/(loss) of joint venture | 25 | (24) |
| Group’s share of other comprehensive expense | – | (21) |
| Group adjustments to other comprehensive income | 2 | 16 |
| Group’s share of other comprehensive income/(expense) | 2 | (5) |
| Group’s share of total comprehensive income/(expense) | 27 | (29) |
Financial statements
168
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
22. Investments in joint ventures continued
| At 31 March | At 31 March | |
| 2024 | 2023 | |
| Primient | £m | £m |
| Assets | ||
| Non-current assets | 1 022 | 993 |
| Cash and cash equivalents | 26 | 43 |
| Other current assets | 496 | 624 |
| Liabilities | ||
| Non-current liabilities | (1 011) | (1 072) |
| Current borrowings | (27) | (9) |
| Other current liabilities | (277) | (303) |
| Net assets at 100% | 229 | 276 |
| Group share of net assets | 114 | 137 |
| Goodwill and fair value adjustments (net of amortisation) | 51 | 62 |
| Carrying amount of investment in Primient | 165 | 199 |
| Year ended 31 March 2024 | |||
| Primient income statement at Group’s share | Adjusting | Adjusted | |
| £m | Reported | items | reported |
Revenue | 1 118 | – | 1 118 |
Operating profit | 61 | 10 | 71 |
Profit before tax | 31 | 10 | 41 |
Income tax expense | (6) | – | (6) |
| Profit after tax | 25 | 10 | 35 |
| Year ended 31 March 2023 | |||
| Primient income statement at Group’s share | Adjusting | Adjusted | |
| £m | Reported | items | reported |
Revenue | 1 267 | – | 1 267 |
Operating profit | 1 | 48 | 49 |
(Loss)/profit before tax | (21) | 48 | 27 |
Income tax expense | (3) | – | (3) |
(Loss)/profit after tax | (24) | 48 | 24 |
| Year ended | Year ended | ||
| 31 March | 31 March | ||
| 2024 | 2023 | ||
Primient’s adjusting items at Group’s share | Note | £m | £m |
| Exceptional costs included in operating profit | 1 | 52 | |
| Amortisation of acquired intangible assets and other fair value adjustments | 9 | (4) | |
Total excluded from adjusted share of profit | 4 | 10 | 48 |
| Ordinary | Share | ||
| share capital | premium | Total | |
| £m | £m | £m | |
At 1 April 2022 | 117 | 407 | 524 |
Allotted under share option schemes | – | 1 | 1 |
| At 31 March 2023 | 117 | 408 | 525 |
Allotted under share option schemes | – | – | – |
| At 31 March 2024 | 117 | 408 | 525 |
Year ended 31 March 2024 | Year ended 31 March 2023 | |||
| Number of | Cost | Number of | Cost | |
| shares | £m | shares* | £m | |
At 1 April | 401 637 112 | 117 | 468 534 065 | 117 |
Impact of share consolidation | – | – | (66 933 968) | – |
| Allotted under share option schemes | 57 349 | – | 37 015 | – |
| At 31 March | 401 694 461 | 117 | 401 637 112 | 117 |
169
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
23. Share capital and share premium continued
Year ended 31 March 2024 | Year ended 31 March 2023 | ||||
| Number of | Cost | Number of | Cost | ||
| shares | £m | shares | £m | ||
At 1 April | 3 965 498 | 32 | 4 066 931 | 30 | |
Impact of share consolidation | – | – | (576 479) | – | |
Purchased in the market 1 : | |||||
| – | into the EBT | 2 800 000 | 20 | 1 300 000 | 9 |
| Transferred to employees: | |||||
| – | from the EBT | (1 206 503) | (11) | (824 954) | (7) |
| At 31 March | 5 558 995 | 41 | 3 965 498 | 32 | |
At 31 March 2024 | At 31 March 2023 | |||||
| Market | % of | Market | % of | |||
| Number of | value | outstanding | Number of | value | outstanding | |
| shares | £m | share capital | shares | £m | share capital | |
Shares held in the EBT | 5 558 995 | 34 | 1.4% | 3 965 498 | 32 | 1% |
Total | 5 558 995 | 34 | 1.4% | 3 965 498 | 32 | 1% |
| Cost of | Currency | |||||||||||
| Hedging | hedging | FVOCI | translation | Pre-IFRS | ||||||||
| reserve | reserve | reserve | reserve | reserves | Total | |||||||
| £m | £m | £m | £m | £m | £m | |||||||
At 1 April 2022 | 50 | (5) | – | 73 | 104 | 222 | ||||||
| Cash flow hedges: | ||||||||||||
| – | fair value losses in the year | (2) | – | – | – | – | (2) | |||||
| – | hedging gain transferred | |||||||||||
| to inventory | (19) | – | – | – | – | (19) | ||||||
| – | fair value gain on cash flow hedges | |||||||||||
| transferred to income statement on | sale | |||||||||||
| of a subsidiary | (48) | – | – | – | – | (48) | ||||||
| – | cost of hedging transferred to | |||||||||||
| income | statement | – | 5 | – | – | – | 5 | |||||
| – | tax effect of the above items | 5 | – | – | – | – | 5 | |||||
| FVOCI financial assets: | ||||||||||||
| – | fair value gain in the year | – | – | 3 | – | – | 3 | |||||
| Currency translation differences: | ||||||||||||
| – | gain on currency translation | |||||||||||
| of | foreign | operations | – | – | – | 62 | – | 62 | ||||
| – | fair value loss on net investment | hedges | – | – | – | (33) | – | (33) | ||||
| – | fair value loss on net investment hedges | |||||||||||
| statement | transferred to income | – | – | – | 28 | – | 28 | |||||
| – | gain on currency translation of | |||||||||||
| operations transferred to | foreign | income | ||||||||||
| a | statement on sale of | subsidiary | – | – | – | (81) | – | (81) | ||||
| Share of other comprehensive | (expense)/income | of joint venture | (24) | – | – | 19 | – | (5) | ||||
| Tax effect on the above item | 6 | – | – | – | – | 6 | ||||||
At 31 March 2023 | (32) | – | 3 | 68 | 104 | 143 | ||||||
| Cash flow hedges: | ||||||||||||
| – | fair value losses in the year | (6) | – | – | – | – | (6) | |||||
| – | hedging losses transferred | |||||||||||
| to inventory | 4 | – | – | – | – | 4 | ||||||
| – | tax effect of the above items | (1) | – | – | – | – | (1) | |||||
| FVOCI financial assets: | ||||||||||||
| – | fair value loss in the year | – | – | (17) | – | – | (17) | |||||
| Currency translation differences: | ||||||||||||
| – | loss on currency translation | |||||||||||
| operations | foreign | of | – | – | – | (50) | – | (50) | ||||
| – | fair value gain on net investment | hedges | – | – | – | 7 | – | 7 | ||||
| Share of other comprehensive | (expense)/income | of joint venture | (1) | – | – | 3 | – | 2 | ||||
| At 31 March 2024 | (36) | – | (14) | 28 | 104 | 82 | ||||||
Financial statements
170
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
24. Other reserves continued
| At 31 March | ||
| 2024 | 2023 | |
| £m | £m | |
| Current trade and other payables | ||
| Trade payables | 174 | 250 |
| Social security | 3 | 7 |
| Accruals and deferred income | 64 | 99 |
| Other payables | 18 | 16 |
| Total | 259 | 372 |
| At 31 March | ||
| 2024 | 2023 | |
| £m | £m | |
| US dollar | 128 | 220 |
| Euro | 74 | 86 |
| Sterling | 18 | 28 |
| Other | 39 | 38 |
| Total | 259 | 372 |
| At 31 March | ||
| 2024 | 2023 | |
| £m | £m | |
US Private Placement Notes 2025 – 2032 1 | 537 | 548 |
Total loan notes | 537 | 548 |
Lease liabilities | 36 | 44 |
| Total non-current borrowings | 573 | 592 |
171
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
26. Borrowings continued
| At 31 March | ||
| 2024 | 2023 | |
| £m | £m | |
Short-term loans and facilities | 7 | 14 |
US Private Placement Notes 2023 | – | 97 |
| Lease liabilities | 10 | 10 |
| Total current borrowings | 17 | 121 |
| Year ended 31 March | ||
| 2024 | 2023 | |
| £m | £m | |
US$95m US Private Placement FRN 1 2023 | – | 6.4% |
US$25m 3.83% US Private Placement Notes 2023 | – | 3.8% |
| US$180m 4.06% US Private Placement Notes 2025 | 4.1% | 4.1% |
| US$100m 4.16% US Private Placement Notes 2027 | 4.2% | 4.2% |
| US$100m 3.31% US Private Placement Notes 2029 | 3.3% | 3.3% |
| US$100m 2.91% US Private Placement Notes 2030 | 2.9% | 2.9% |
| US$100m 3.41% US Private Placement Notes 2031 | 3.4% | 3.4% |
| US$100m 3.01% US Private Placement Notes 2032 | 3.0% | 3.0% |
| Lease liabilities | 3.9% | 3.4% |
27. Change in working capital and other non-cash movements – total operations
| Year ended 31 March | ||
| 2024 | 2023 | |
| £m | £m | |
Decrease/(increase) in inventories | 78 | (118) |
Decrease/(increase) in receivables | 36 | (55) |
| (Decrease)/increase in payables | (103) | 71 |
| Movement in derivative financial instruments (excluding debt-related derivatives) | – | (6) |
| Decrease in provisions for other liabilities and charges | (4) | (2) |
| Change in working capital | 7 | (110) |
Other non-cash movements | (3) | (7) |
Change in working capital and other non-cash movements | 4 | (117) |
| Year ended 31 March | ||
| 2024 | 2023 | |
| £m | £m | |
Net debt at beginning of the year | (238) | (626) |
Net (decrease)/increase in cash and cash equivalents | (27) | 303 |
Net decrease in borrowings and lease liabilities | 114 | 15 |
| Decrease in net debt resulting from cash flows | 87 | 318 |
Currency translation differences | 2 | 3 |
| Lease liabilities | (7) | 69 |
| Other non-cash movements | 3 | (2) |
| Decrease in net debt in the year | 85 | 388 |
Net debt at end of the year | (153) | (238) |
Financial statements
172
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
28. Net debt – total operations continued
| Cash and | Borrowings | ||
| cash | and lease | ||
| equivalents | liabilities | Total | |
| £m | £m | £m | |
At 1 April 2022 | 127 | (753) | (626) |
Movement from cash flows | 303 | 15 | 318 |
Currency translation differences | 45 | (42) | 3 |
Lease liabilities | – | 69 | 69 |
Other non-cash movements | – | (2) | (2) |
At 31 March 2023 | 475 | (713) | (238) |
Movement from cash flows | (27) | 114 | 87 |
Currency translation differences | (11) | 13 | 2 |
| Lease liabilities | – | (7) | (7) |
| Other non-cash movements | – | 3 | 3 |
| At 31 March 2024 | 437 | (590) | (153) |
| At 31 March | ||
| 2024 | 2023 | |
| £m | £m | |
US dollar | (204) | (279) |
Euro | 1 | 3 |
| Sterling | 4 | 5 |
| Other | 46 | 33 |
| Total | (153) | (238) |
173
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
29. Financial instruments continued
| Derivatives | At 31 March 2024 | ||||||
| Amortised | in a hedging | Investments | Total | ||||
| cost/cash | relationship | in equities | carrying value | Fair value | |||
| Notes | £m | £m | £m | £m | £m | ||
Investments in equities | 18 | – | – | 28 | 28 | 28 | |
Trade and other receivables | 17 | 279 | – | – | 279 | 279 | |
| Cash and cash equivalents | 16 | 437 | – | – | 437 | 437 | |
| Trade and other payables | 25 | (256) | – | – | (256) | (256) | |
| Borrowings | 26 | (590) | – | – | (590) | (539) | |
| Commodity derivative net | liability | – | (3) | – | (3) | (3) |
| Derivatives | At 31 March 2023 | ||||||
| Amortised | in a hedging | Investments | Total | ||||
| cost/cash | relationship | in equities | carrying value | Fair value | |||
| Notes | £m | £m | £m | £m | £m | ||
Investments in equities | 18 | – | – | 42 | 42 | 42 | |
Trade and other receivables | 17 | 336 | – | – | 336 | 336 | |
Cash and cash equivalents | 16 | 475 | – | – | 475 | 475 | |
Trade and other payables | 25 | (365) | – | – | (365) | (365) | |
Borrowings | 26 | (713) | – | – | (713) | (662) | |
| Commodity derivative net | liability | – | (1) | – | (1) | (1) |
At 31 March 2024 | At 31 March 2023 | |||
| Assets | Liabilities | Assets | Liabilities | |
| £m | £m | £m | £m | |
Non-current derivative financial instruments | – | – | – | – |
Current derivative financial instruments | – | (3) | 3 | (4) |
– | (3) | 3 | (4) |
Financial statements
174
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
29. Financial instruments continued
| At 31 March | |||
| 2024 | 2023 | ||
| Borrowings used to net investment hedge currency translation risk | £m | £m | |
Notional principal amounts of borrowings (weighted liability) | 320 | 552 | |
| Gain/(loss) on translation of borrowings recognised in currency | |||
| translation | reserve | 7 | (33) |
| Carrying amount of hedging instrument | 320 | 552 | |
| Maturity date | Oct 2025-Aug 2032 | Oct 2023-Aug 2032 | |
| Hedge ratio | 1:1 | 1:1 | |
Change in intrinsic value of outstanding hedging instruments used to determine hedge effectiveness | 7 | (33) | |
| Change in intrinsic value of outstanding hedging item used to determine | |||
| hedge effectiveness | (7) | 33 | |
| Weighted average foreign currency rate for the year (/£1) | $1.25 | $1.26 | |
| Ineffectiveness recognised in profit or loss | – | – | |
| Cumulative loss remaining in translation reserve | (130) | (137) |
| At 31 March | |||
| 2024 | 2023 | ||
| Natural gas cash flow hedges | £m | £m | |
| Nominal amounts of futures contracts (each contract expressed in 10,000 | mBTU of usage) | 233 | 325 |
Gross carrying amount of outstanding hedged items: assets | 3 | 4 | |
| Gross carrying amount of outstanding hedged items: liabilities | – | (1) | |
| Carrying amount of hedging instrument | (3) | (3) | |
| Hedge ratio | 1:1 | 1:1 | |
| Change in intrinsic value of outstanding hedging instruments used to determine | |||
| hedge effectiveness | (3) | (3) | |
| Change in intrinsic value of outstanding hedging item used to determine hedge effectiveness | 3 | 3 | |
| Ineffectiveness recognised in profit or loss | – | – |
175
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
29. Financial instruments continued
Cash flow hedges continued
| At 31 March | ||||
| 2024 | 2023 | |||
| Commodity | Commodity | |||
| derivatives | derivatives | |||
| Cash flow hedge reserve | £m | £m | ||
Opening balance | (32) | 50 | ||
Fair value loss in the year | (6) | (2) | ||
| Hedging loss/(gain) transferred to inventory | 4 | (19) | ||
| Fair value gain on cash flow hedges transferred to the income | statement | – | (48) | |
| Deferred tax | (1) | 5 | ||
| Share of other comprehensive expense of joint venture net of | tax | (1) | (18) | |
| Closing balance | (36) | (32) | ||
Cash flows expected to occur 1 : | ||||
| – | within one year | (36) | (29) |
| At 31 March 2024 | ||||||
| Level 1 | Level 2 | Level 3 | Total | |||
| Notes | £m | £m | £m | £m | ||
| Assets at fair value | ||||||
Financial assets at FVPL | 18 | – | – | 22 | 22 | |
Financial assets at FVOCI | 18 | – | – | 6 | 6 | |
| Derivative financial instruments: | ||||||
| – | commodity derivatives | – | – | – | – | |
| Assets at fair value | – | – | 28 | 28 | ||
| Liabilities at fair value | ||||||
| Derivative financial instruments: | ||||||
| – | commodity derivatives | (3) | – | – | (3) | |
| Liabilities at fair value | (3) | – | – | (3) | ||
| At 31 March 2023 | ||||||
| Level 1 | Level 2 | Level 3 | Total | |||
| Notes | £m | £m | £m | £m | ||
| Assets at fair value | ||||||
Financial assets at FVPL | 18 | – | – | 20 | 20 | |
Financial assets at FVOCI | 18 | – | – | 22 | 22 | |
| Derivative financial instruments: | ||||||
| – | commodity derivatives | 3 | – | – | 3 | |
| Assets at fair value | 3 | – | 42 | 45 | ||
| Liabilities at fair value | ||||||
| Derivative financial instruments: | ||||||
| – | commodity derivatives | (4) | – | – | (4) | |
| Liabilities at fair value | (4) | – | – | (4) | ||
Financial statements
176
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
29. Financial instruments continued
Financial instruments measured at fair value: the fair value hierarchy continued
| Commodity | Commodity | ||||||
| pricing | pricing | Financial | Financial | ||||
| contracts – | contracts – | assets | assets | ||||
| assets | liabilities | at FVPL | at FVOCI | Total | |||
| £m | £m | £m | £m | £m | |||
At 1 April 2022 | 2 | – | 20 | 26 | 48 | ||
| Income statement: | |||||||
| – | prior year amounts settled | (2) | – | – | – | (2) | |
Other comprehensive income | – | – | – | 3 | 3 | ||
| Re-measurement of non-qualified deferred | compensation arrangements (Note 18) | – | – | (2) | – | (2) | |
Purchases | – | – | 3 | – | 3 | ||
Disposals | – | – | (3) | (7) | (10) | ||
Currency translation differences | – | – | 2 | – | 2 | ||
At 31 March 2023 | – | – | 20 | 22 | 42 | ||
| Income statement: | |||||||
| – | prior year amounts settled | – | – | – | – | – | |
| Other comprehensive income | – | – | – | (17) | (17) | ||
| Re-measurement of non-qualified deferred | compensation arrangements (Note 18) | – | – | 3 | – | 3 | |
| Purchases | – | – | 2 | 1 | 3 | ||
| Disposals | – | – | (3) | – | (3) | ||
| At 31 March 2024 | – | – | 22 | 6 | 28 | ||
177
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
30. Risk management
Management of financial risk
The key financial risks faced by the Group are credit risk, liquidity risk and market risks, which include
interest rate risk, foreign exchange risk and certain commodity price risks. The Board regularly
reviews these risks and approves written policies covering the use of financial instruments to manage
these risks and sets overall risk limits. The derivative financial instruments approved by the Board of
Tate & Lyle PLC to manage financial risks include: swaps (both interest rate and currency), swaptions,
caps, forward rate agreements, foreign exchange contracts, commodity forward contracts and options,
and commodity futures.
The Chief Financial Officer retains overall responsibility for management of financial risk for the Group.
Most of the Group’s financing, interest rate and foreign exchange risks are managed through the Group
treasury company, Tate & Lyle International Finance PLC. Tate & Lyle International Finance PLC arranges
funding and manages interest rate, foreign exchange and bank counterparty risks within limits approved
by the Board of Tate & Lyle PLC.
Commodity price risks are managed through the commodity trading functions in the US and Europe.
The Group applies cash flow hedge accounting to manage its economic price exposure on the purchase
of energy and chemicals used in the production process. All US corn procurement transferred to Primient
on completion of the Transaction meaning that the Group procures corn from Primient (both for the
manufacturing of corn-based finished goods in the Group’s US manufacturing sites and for corn embedded
in the finished goods manufactured by Primient and sold to the Group under long-term agreements).
The Group manages the corn price risk by using economic hedging principles such as entering into
offsetting positions with its supplier (Primient) and customers.
| Income | At 31 March 2024 | Income | At 31 March 2023 | |
| statement -/+ | Equity -/+ | statement -/+ | Equity -/+ | |
| £m | £m | £m | £m | |
Sterling/US dollar 10% change | 1 | 37 | 1 | 34 |
Sterling/euro 10% change | – | – | – | – |
Financial statements
178
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
30. Risk management continued
| Year ended 31 March | ||
| 2024 | 2023 | |
| Times | Times | |
Net debt/EBITDA 1 | 0.3 | 0.6 |
179
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
30. Risk management continued
Liquidity risk management continued
| At 31 March 2024 | ||||
| < 1 year | 1 – 5 years | > 5 years | ||
| Liquidity analysis | £m | £m | £m | |
Borrowings | – | (222) | (317) | |
Lease liabilities | (11) | (32) | (8) | |
| Interest on borrowings | (19) | (56) | (23) | |
| Trade and other payables | (256) | – | – | |
| Derivative contracts: | ||||
| – | receipts | 65 | – | – |
| – | payments | (65) | – | – |
| Commodity derivatives | (3) | – | – |
| At 31 March 2023 | ||||
| < 1 year | 1 – 5 years | > 5 years | ||
| Liquidity analysis | £m | £m | £m | |
Borrowings | (102) | (226) | (323) | |
Lease liabilities | (14) | (37) | (13) | |
Interest on borrowings | (25) | (66) | (33) | |
Trade and other payables | (365) | – | – | |
| Derivative contracts: | ||||
| – | receipts | 168 | – | – |
| – | payments | (168) | – | – |
Commodity derivatives | (1) | – | – |
Sustainability
The Group has linked its sustainability targets to key performance indicators in the committed undrawn
facilities such that the margin paid for the facilities is adjusted for performance against specified targets
achieved as evidenced by the relevant Sustainability Compliance Certificate. The amount arising as a result
of any reduction in the margin is re-invested in sustainability initiatives or paid to a sustainability charity or
organisation supporting the United Nations Sustainable Development Goals.
Financial statements
180
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
30. Risk management continued
Liquidity risk management continued
| At 31 March | |||
| 2024 | 2023 | ||
| Note | £m | £m | |
Net debt | 28 | 153 | 238 |
| Equity attributable to owners of the Company | 1 238 | 1 189 | |
| Total capital | 1 391 | 1 427 |
181
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
31. Retirement benefit obligations continued
At 31 March 2024 | At 31 March 2023 | ||||||
| UK plans* | US plans | Total | UK plans* | US plans | Total | ||
| £m | £m | £m | £m | £m | £m | ||
| Benefit obligations: | |||||||
Funded plans | (622) | (399) | (1 021) | (621) | (433) | (1 054) | |
| Unfunded plans | (3) | (76) | (79) | (4) | (84) | (88) | |
(625) | (475) | (1 100) | (625) | (517) | (1 142) | ||
Fair value of plan assets | 618 | 400 | 1 018 | 616 | 426 | 1 042 | |
| Net deficit | (7) | (75) | (82) | (9) | (91) | (100) | |
| Presented in the statement of financial | |||||||
| position | as: | ||||||
| Retirement benefit surplus | 5 | 24 | 29 | 5 | 13 | 18 | |
| Retirement benefit deficit | (12) | (99) | (111) | (14) | (104) | (118) | |
(7) | (75) | (82) | (9) | (91) | (100) |
| US plans | US plans | |||||
| UK plans | funded | Unfunded* | Total | |||
| £m | £m | £m | £m | |||
Net deficit at 1 April 2023 | (9) | (7) | (84) | (100) | ||
| Income statement: | ||||||
| – | current service costs | – | – | – | – | |
| – | administration costs | (1) | (1) | – | (2) | |
| – | net interest expense US plans | – | 1 | (4) | (3) | |
| Other comprehensive income: | ||||||
| – | actual return higher/(lower) than interest on plan assets | 16 | (4) | – | 12 | |
| – | actuarial gain/(loss): | |||||
| – | changes in financial assumptions | – | 16 | 3 | 19 | |
| – | changes in demographic assumptions | 5 | – | (1) | 4 | |
| – | experience against assumptions | (21) | – | 2 | (19) | |
| Other movements: | ||||||
| – | employer’s contribution | 2 | – | 7 | 9 | |
| – | non-qualified deferred compensation arrangements | – | (3) | – | (3) | |
| – | currency translation differences | 1 | (1) | 1 | 1 | |
| Net deficit at 31 March 2024 | (7) | 1 | (76) | (82) | ||
Financial statements
182
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
31. Retirement benefit obligations continued
| US plans | US plans | |||||
| UK plans | funded | unfunded | Total | |||
| £m | £m | £m | £m | |||
At 1 April 2023 | (625) | (433) | (84) | (1 142) | ||
| Income statement: | ||||||
| – | current service costs | – | – | – | – | |
| – | interest costs | (29) | (18) | (4) | (51) | |
| Other comprehensive income: | ||||||
| – | actuarial gain/(loss): | |||||
| – | changes in financial assumptions | – | 16 | 3 | 19 | |
| – | changes in demographic assumptions | 5 | – | (1) | 4 | |
| – | experience against assumptions | (21) | – | 2 | (19) | |
| Other movements: | ||||||
| – | benefits paid | 44 | 30 | 7 | 81 | |
| – | non-qualified deferred compensation arrangements | – | (3) | – | (3) | |
| – | currency translation differences | 1 | 9 | 1 | 11 | |
| At 31 March 2024 | (625) | (399) | (76) | (1 100) | ||
| US plans | US plans | ||||
| UK plans | funded | unfunded | Total | ||
| £m | £m | £m | £m | ||
At 1 April 2023 | 616 | 426 | – | 1 042 | |
| Income statement: | |||||
| – | administration costs | (1) | (1) | – | (2) |
| – | interest gains | 29 | 19 | – | 48 |
| Other comprehensive income: | |||||
| – | actual return higher/(lower) than interest on plan assets | 16 | (4) | – | 12 |
| Other movements: | |||||
| – | employer’s contribution | 2 | – | – | 2 |
| – | benefits paid | (44) | (30) | – | (74) |
| – | currency translation differences | – | (10) | – | (10) |
| At 31 March 2024 | 618 | 400 | – | 1 018 | |
At 31 March 2024 | At 31 March 2023 | ||||
| Principal assumptions | UK | US | UK | US | |
Inflation rate | 3.0%/3.4% | 2.5% | 2.8%/3.3% | 2.5% | |
Expected rate of salary increases | n/a | n/a | n/a | n/a | |
| Expected rate of pension increases: | |||||
| – | deferred pensions | 3.0% | n/a | 2.8% | n/a |
| – | pensions in payment | 3.3% | n/a | 3.2% | n/a |
| Discount rate | 4.8% | 5.0% | 4.8% | 4.6% | |
| Average life expectancy | |||||
| – | male aged 65 now/in 20 years | 20.8/22.4 years | 20.7/23.4 years | 20.9/22.5 years | 20.6/23.4 years |
| – | female aged 65 now/in 20 years | 23.4/25.1 years | 22.6/25.3 years | 23.6/25.2 years | 22.6/25.3 years |
| Increase/(decrease) in obligation | |||
| Impact of | Impact of | ||
| Change in | increase in | decrease in | |
| assumptions | assumption | assumption | |
| +/- | £m | £m | |
Inflation rate 1 | 50 bp | 6 | (37) |
Life expectancy | 1 year | 46 | (46) |
Discount rate | 50 bp | (50) | 54 |
183
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
31. Retirement benefit obligations continued
Year ended 31 March 2024 | Year ended 31 March 2023 | |||||
| UK | US | Total | UK | US | Total | |
| £m | £m | £m | £m | £m | £m | |
| Quoted | ||||||
Equities | 3 | – | 3 | 3 | – | 3 |
| Corporate bonds | 2 | – | 2 | 2 | – | 2 |
| Investment funds | 5 | – | 5 | 5 | – | 5 |
| Liability Driven Investments (LDI) | ||||||
| fixed income | – | 396 | 396 | – | 422 | 422 |
| Cash | 6 | – | 6 | 7 | – | 7 |
| Unquoted | ||||||
| Insurance policies | 602 | 4 | 606 | 599 | 4 | 603 |
618 | 400 | 1 018 | 616 | 426 | 1 042 |
| UK plans | US plans | Total | ||
| £m | £m | £m | ||
Weighted average duration (years) | 10.9 | 8.7 | 10.0 | |
| Benefit payments expected: | ||||
| – | within 12 months | 43 | 39 | 82 |
| – | between 1 to 5 years | 175 | 149 | 324 |
| – | between 6 to 10 years | 217 | 167 | 384 |
| Risk | Action taken | |
| Investment | The investment and longevity risks for the main UK scheme have been fully insured through the purchase | |
| and longevity | of a qualifying bulk annuity insurance policy during the year ended 31 March 2020. At 31 March 2024, | |
| risks | £606 | million (2023 – £603 million) of the benefit obligation was fully matched by qualifying insurance |
| benefit plans in the US are predominantly held in fixed interest security type investments, as a result of the | policies that also mitigate longevity and investment risks. The remaining assets of the funded defined | |
| de-risking initiatives through the sale of equities and some investment funds. The Group therefore uses | ||
| an asset matching strategy to hedge the liability with cash flows and credit profiles similar to the specific | pension plan liabilities, and which are designed to match the movement in the balance sheet liabilities. | |
| No | leverage is used and there are no derivatives used in the portfolio. Note that it is not possible to | |
| precisely match the liability movements as it is not possible to construct a portfolio that generates an | ||
| identical yield to AA Corporate Bond yields that are used to value the liabilities under IFRS. | ||
| Interest rate | The bulk annuity insurance policy has nullified the interest rate risk for the main UK scheme. For the US | |
| risk | funded plans, the Group seeks to ensure that, as far as practicable, the investment portfolios are invested | |
| in securities with maturities and in currencies that match the expected future benefit payments as they | ||
| fall | due. | |
| Inflation risk | Inflation risk for the main UK scheme has also been nullified due to the bulk annuity policy. The deferred | |
| pensions and pensions in payment in the US funded plans do not attract inflation increases. Some inflation | risk exists in relation to the employee members’ benefits which is mitigated by holding index-linked | |
| government bonds and corporate bonds. | ||
Financial statements
184
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
32. Share-based payments continued
Year ended 31 March 2024 | Year ended 31 March 2023 | |||
| Weighted | Weighted | |||
| average | average | |||
| exercise | exercise | |||
| Awards | price | Awards | price | |
| (number) | (pence) | (number) | (pence) | |
Outstanding at 1 April | 9 574 032 | 16p | 10 407 889 | 12p |
Granted | 3 399 485 | 20p | 3 457 036 | 16p |
| Exercised | (1 966 442) | 16p | (1 353 110) | 15p |
| Lapsed | (1 526 182) | 27p | (2 937 783) | 4p |
| Outstanding at 31 March | 9 480 893 | 16p | 9 574 032 | 16p |
Exercisable at 31 March | 101 675 | 187p | 71 415 | 243p |
Year ended 31 March 2024 | Year ended 31 March 2023 | |||
PSP | Sharesave | PSP | Sharesave | |
Fair value at grant date | 629p | 180p | 694p | 211p |
Exercise price | – | 512p | – | 571p |
| Principal assumptions: | ||||
| Share price on grant date | 754p | 644p | 805p | 730p |
| Expected life of the awards | 3 years | 3.3/5.3 years | 3 years | 3.3/5.3 years |
| Risk-free interest rate | 4.94% 4.07%/3.92% | 1.85% | 3.22%/3.16% | |
| Dividend yield on the Company’s shares | 2.55% | 3.00% | 2.26% | 2.49% |
| Volatility of the Company’s shares | 25% | 25% | 25% | 25% |
| Comparator share price volatility* | 24%-33% pa | – | 22%-36% pa | – |
| Comparator correlation* | 25% | – | 25% | – |
185
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
32. Share-based payments continued
Awards granted in the year continued
The fair value of the awards was measured using a Black-Scholes option pricing methodology, taking into
account factors such as exercise restrictions and behavioural considerations.
Expected volatility was based on the historical volatility of the market price of the Company’s shares over
the expected life of the awards.
Awards outstanding at the end of the year
The range of exercise prices and the weighted average remaining contractual life of the awards
outstanding at the end of the year were as follows:
At 31 March 2024 | At 31 March 2023 | |||
| Weighted | Weighted | |||
| average | average | |||
| contractual | contractual | |||
| Awards | life | Awards | life | |
| Exercise price | (number) | (months) | (number) | (months) |
Nil | 9 204 900 | 15.0 | 9 299 770 | 26.6 |
400p to 799p | 275 993 | 36.5 | 274 262 | 33.9 |
| Total | 9 480 893 | 15.6 | 9 574 032 | 26.8 |
IFRS 2 permits net settled share-based payments to be treated as equity-settled in full, if certain criteria
are met, rather than the tax element being cash-settled. The amount the Group expects to pay to tax
authorities to settle the employees’ tax obligations in respect of equity-settled awards in the next financial
year is not materially different to the amounts paid in the current and prior financial years. Refer to Note 23.
| Restructuring | Litigation | |||
| Insurance | and closure | and other | ||
| provisions | provisions | provisions | Total | |
| £m | £m | £m | £m | |
At 1 April 2022 | 5 | – | 18 | 23 |
Provided in the year | 17 | – | 8 | 25 |
Released in the year | (9) | – | (13) | (22) |
Utilised in the year | (6) | – | (3) | (9) |
Currency translation differences | – | – | 1 | 1 |
At 31 March 2023 | 7 | – | 11 | 18 |
Provided in the year | 10 | 3 | 1 | 14 |
Released in the year | (2) | – | (3) | (5) |
| Utilised in the year | (8) | (2) | (3) | (13) |
| Currency translation differences | – | – | – | – |
| At 31 March 2024 | 7 | 1 | 6 | 14 |
| At 31 March | |||
| 2024 | 2023 | ||
| £m | £m | ||
| Provisions are expected to be utilised as follows: | |||
| – | within one year | 12 | 13 |
| – | after more than one year but before five years | 2 | 5 |
| Total | 14 | 18 |
Financial statements
186
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
In the 2024 financial year:
There were no acquisitions in the 2024 financial year.
In the 2023 financial year:
Nutriati acquisition
On 29 April 2022 the Group completed the acquisition of Nutriati, an ingredient technology business
developing and producing chickpea protein and flour, expanding its capability to offer customers
sustainable, plant-based solutions. This transaction was structured as an asset purchase and was
accounted for as a business combination. Total consideration was £10 million, including £1 million of
deferred consideration and £1 million of non-cash consideration. Included within the identifiable assets
acquired were inventories of £3 million and intangible assets of £6 million. Goodwill of £1 million, which is
not deductible for tax purposes, was recorded on the acquisition.
Quantum acquisition
On 9 June 2022 the Group completed the acquisition for 100% of the equity of Quantum Hi-Tech
(Guangdong) Biological Co., Ltd (Quantum), a leading prebiotic dietary fibre business in China from
ChemPartner Pharmatech Co., Ltd (ChemPartner) for a total consideration of US$238 million (£188 million).
The acquisition of Quantum, which engages in the research, development, production and sale of fructo-
oligosaccharides and galacto-oligosaccharides, significantly strengthened Tate & Lyle’s position as a
leading global player in dietary fibres, bringing a high-quality portfolio of speciality fibres, strong research
and development capabilities and proprietary manufacturing processes and technologies. The acquisition
also expanded Tate & Lyle’s ability to provide added-fibre solutions for its customers across a range of
categories including dairy, beverages, bakery and nutrition (including infant nutrition), and to meet growing
consumer interest in gut health. It also significantly expanded Tate & Lyle’s presence in China and Asia,
and extended its capabilities to create solutions across food and drink utilising its leading speciality
ingredient portfolio.
Details of the acquisition are provided in the tables below:
| At 31 March | |
| 2023 | |
| Goodwill | £m |
| Total consideration | 188 |
| Less: fair value of net assets acquired | (93) |
| Goodwill | 95 |
| At 31 March | |
| 2023 | |
| Cash flows | £m |
| Total consideration | 188 |
| Less: net cash acquired | (4) |
| Acquisition of business, net of cash acquired | 184 |
187
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
35. Acquisitions continued
| Book | |||
| value on | Fair value | Total fair | |
| acquisition | adjustment | value | |
| Fair value of net assets acquired | £m | £m | £m |
Intangible assets (customer relationships, technology/know-how) | – | 90 | 90 |
Property, plant and equipment | 12 | 7 | 19 |
| Inventories | 4 | 1 | 5 |
| Trade and other receivables | 5 | – | 5 |
| Cash and cash equivalents | 4 | – | 4 |
| Trade and other payables | (6) | – | (6) |
| Deferred tax liabilities | – | (24) | (24) |
| Net assets on acquisition | 19 | 74 | 93 |
The gross amount of trade receivables is materially the same as the fair value of the trade receivables and it
is expected that the full contractual amounts can be collected. The goodwill, which is not deductible for tax
purposes, primarily represents the premium paid to acquire an established business with a leading and
sustainable market position in China with the potential to expand beyond. It also represents the future value
to the Group of being able to leverage its technology and products, which are highly complementary to the
Group’s existing fibres portfolio, to offer an enhanced range of fibre solutions to existing customers.
The acquired business contributed revenue of £32 million and an operating profit of £8 million for the period
from acquisition on 9 June 2022 until 31 March 2023 (excluding the amortisation of acquired intangibles
recognised from the acquisition). Had the business been acquired at the beginning of the 2023 financial
year, it would have contributed revenue of £39 million and an operating profit of £14 million in the year
ended 31 March 2023.
36. Related party disclosure
Identity of related parties
The Group has related party relationships with its joint venture, the Group’s pension schemes and with
key management, being its Directors and executive officers. Key management compensation is disclosed
in Note 9. There were no other related party transactions with key management.
There were no material changes in related parties or in the nature of related party transactions during the
2024 financial year and no material related party transactions containing unusual commercial terms in the
current or prior year. In the 2023 financial year, as a result of the sale of the controlling stake in the Primient
business, the Group holds a 49.7% interest in Primient.
| Year ended 31 March | ||
| 2024 | 2023 | |
| £m | £m | |
| Sales of goods and services to joint ventures and other income | 39 | 47 |
| Purchases of goods and services from joint ventures | 243 | 302 |
| Receivables due from joint ventures | 11 | 16 |
| Payables due to joint ventures | 1 | 18 |
37. Events after the balance sheet date
On 22 May 2024, the Group agreed the sale of the remaining interest in Primient joint venture to KPS Capital
Partners, LP for US$350 million.
On 16 May 2024 the Group’s committed, undrawn and sustainability-linked revolving credit facility
of US$800 million (£633 million) was amended and restated. The maturity date was extended for five
years to 16 May 2029, and includes two further one-year extension options, which are subject to lender
credit approval.
There are no other post balance sheet events requiring disclosure in respect of the year ended
31 March 2024.
1
Financial statements
188
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
Company name | Registered address | |
United Kingdom 1 | ||
Astaxanthin Manufacturing Limited | 5 Marble Arch, London W1H 7EJ, UK | |
| G.C. Hahn and Company Limited | 5 Marble Arch, London W1H 7EJ, UK | |
Hahntech International Limited | 5 Marble Arch, London W1H 7EJ, UK | |
Tate & Lyle Export Holdings Limited 2 | 5 Marble Arch, London W1H 7EJ, UK | |
Tate & Lyle Group Services Limited | 5 Marble Arch, London W1H 7EJ, UK | |
Tate & Lyle Holdings Americas Limited | 5 Marble Arch, London W1H 7EJ, UK | |
Tate & Lyle Holdings Limited 3 | 5 Marble Arch, London W1H 7EJ, UK | |
Tate & Lyle Mold UK Limited | 5 Marble Arch, London W1H 7EJ, UK | |
Tate & Lyle Industries Limited | 5 Marble Arch, London W1H 7EJ, UK | |
Tate & Lyle International Finance PLC 2 | 5 Marble Arch, London W1H 7EJ, UK | |
| Tate & Lyle Investments America Limited | 5 Marble Arch, London W1H 7EJ, UK | |
Tate & Lyle Investments Brazil Limited | 5 Marble Arch, London W1H 7EJ, UK | |
Tate & Lyle Investments Limited 2,3 | 5 Marble Arch, London W1H 7EJ, UK | |
Tate & Lyle L.P. | 1209 | North Orange Street, Wilmington, DE 19801, US |
Tate & Lyle Overseas Limited | 5 Marble Arch, London W1H 7EJ, UK | |
| Tate & Lyle Pension Trust Limited | 5 Marble Arch, London W1H 7EJ, UK | |
Tate & Lyle Technology Limited 2 | 5 Marble Arch, London W1H 7EJ, UK | |
Tate & Lyle UK Limited 2 | 5 Marble Arch, London W1H 7EJ, UK | |
Tate & Lyle Ventures II LP (99.5%) | 5 Marble Arch, London W1H 7EJ, UK | |
Tate & Lyle Ventures Limited 2 | 5 Marble Arch, London W1H 7EJ, UK | |
Tate & Lyle Ventures LP (99.5%) | 5 Marble Arch, London W1H 7EJ, UK | |
| Argentina | ||
Tate & Lyle Argentina SA 4 | San Martín 140, 14th Floor, City of Buenos Aires, Argentina | |
| Australia | ||
Tate & Lyle ANZ Pty Limited | Building 2, 1425 Boundary Road, Wacol QLD 4076, Australia | |
| Belgium | ||
Tate & Lyle Services (Belgium) N.V. 2 | Industrielaan 4 box, 10-11, 9320 Aalst, Belgium | |
| Bermuda | ||
Tate & Lyle Management & Finance Limited | Aon Point House, 6 Front Street, Hamilton HM11 Bermuda |
Company name | Registered address | |
| Brazil | ||
| Tate & Lyle Gemacom Tech Indústria e Comércio S.A. | Rua Bruno Simili No. 380, Distrito Industrial, City of Juiz de | |
| Fora, State of Minas Gerais, 36092-050, Brazil | ||
| Tate & Lyle Solutions Brasil Limitada | Rua Dr. Rubens Gomes Bueno, No. 691, Torre Sigma, | |
10 th | floor, Bairro Várzea de Baixo, 04730-903, Brazil | |
| British Virgin Islands | ||
SGF (Asia) Co., Limited | Kingston Chambers, PO Box 173, Road Town, Tortola, | |
| British | Virgin Islands | |
SGF Investment Co., Limited | Kingston Chambers, PO Box 173, Road Town, Tortola, | |
| British | Virgin Islands | |
| Canada | ||
Tate & Lyle Solutions Canada Limited | Suite 300, 77 Westmorland Street, Fredericton, NB E3B 4Y9, | |
| Canada | ||
| Cayman Islands | ||
Sweet Green Fields Group Co., Limited | PO Box 309, Ugland House, Grand Cayman, KY1-1104, | |
| Cayman Islands | ||
| Chile | ||
Tate & Lyle Chile Commercial Ltda | Isidora Goyenechea 2800, Piso 43, Las Condes, Santiago, | |
| Chile | ||
| China | ||
| Quantum High Tech (Guangdong) Biological Co., Ltd | 133 | Gaoxin Xi Road, Hi-Tech Zone, Jiangmen City, |
| Guangdong, China | ||
| Sweet Green Fields Co., Limited | Anji Economic Development Zone, Health Medicine Industry | |
| Garden, Huzhou, Zhejiang, China | ||
| Tate & Lyle Trading (Shanghai) Co. Ltd | Room 1401, | Building 11, No. 1582, Gumei Road, Xuhui District, |
Shanghai, 200233, | China | |
| G.C. Hahn & Co. Food Stabiliser Business (Shanghai) Ltd | Unit A, Room 1301, Building 11, No. 1582, Gumei Road, Xuhui | |
| District, Shanghai, 200233, China | ||
| Tate & Lyle Food Ingredients (Nantong) Company Limited | New & Hi-Tech Industrial Development District, Rudong | |
| county, Nantong city, 226400, China | ||
189
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
38. Related undertakings continued
Company name | Registered address | |||
| Colombia | ||||
Tate & Lyle Colombia S.A.S. 4 | Calle 11 #100-121 Of 309, Cali, Colombia | |||
| Costa Rica | ||||
Tate & Lyle Costa Rica Limitada | San Jose Merced, Edificio Torre Mercedes, Piso Octavo, | |||
| Oficinas De CDO Auditores, Costa Rica | ||||
| Croatia | ||||
G.C. Hahn & Co. d.o.o. | Radni ē ka cesta 80, Zagreb, 10 000, Croatia | |||
| Egypt | ||||
Tate & Lyle Egypt LLC | 87 Street 9, Maadi, Cairo, Egypt | |||
| France | ||||
Tate & Lyle Ingredients France S.A.S. | 3-5 Rue Saint-Georges, | 75009, | Paris, France | |
| Germany | ||||
G.C. Hahn & Co. Stabilisierungstechnik GmbH | Roggenhorster Strasse 31, 23556, Lübeck, Germany | |||
G.C. Hahn & Co. Cooperationsgesellschaft mbH | Roggenhorster Strasse 31, 23556, Lübeck, Germany | |||
Tate & Lyle Germany GmbH | Roggenhorster Strasse 31, 23556, Lübeck, Germany | |||
| Gibraltar | ||||
Tate & Lyle Insurance (Gibraltar) Limited | Suite 913, Europort, Gibraltar | |||
| Greece | ||||
Tate & Lyle Greece A.E. | 69 K. N Papadaki, Thessaloniki, 54248 Greece | |||
| Hong Kong | ||||
| Quantum High Tech (HK) Biological Co., Ltd | 31F Tower Two, Times Square, Matheson Street, Hong Kong | |||
Sweet Green Fields International Co., Limited | 2701, | 27th Floor, Central Plaza, 18 Harbour Road, Wanchai, | ||
| Hong Kong | ||||
| Italy | ||||
Tate & Lyle Italia S.P.A. | Via Verdi, 1-CAP 20002 Ossona, Milano, Italy | |||
| Indonesia | ||||
| PT Tate and Lyle Indonesia | Jagat Office Building, Lantai 2 Unit B, Jl. Tomang Raya No. | |||
| 28-30, Jakarta Barat, 11430, Indonesia | ||||
| Ivory Coast | ||||
Tate & Lyle Ivory Coast 4 | Abidjan Cocody 2, Plateaux 01, BP 659 ABJ 01, Côte d’Ivoire | |||
| Japan | ||||
Tate & Lyle Japan KK | 2F Oak Minami-Azabu Building, 3-19-23 Minami-Azabu, | |||
| Minato-ku, Tokyo, Japan | ||||
| Lithuania | ||||
UAB G.C. Hahn & Co. | Vito Gerulai ē io str. 10-101, LT-08200, Vilnius, Lithuania | |||
| Mexico | ||||
| Tate & Lyle México, S. de R.L. de C.V. | Piso 2, Av. Universidad 749, Col del Valle Sur, Ciudad de | |||
México, 03100, | México | |||
Mexama, S.A. de C.V. 4 (65%) | Calle lago de tequesquitengo, No 111 Col. Cuahutemoc C.P. | |||
62430, | Morelos, México | |||
Talo Services de Mexico, S.C. 4 | Piso 2, Av. Universidad 749, Col del Valle Sur, Ciudad de | |||
México, 03100, | México | |||
Company name | Registered address |
| Morocco | |
T&L Casablanca S.A.R.L. | 22, Rue du Parc, Casa Théâtre Centre, Anfa, Casablanca, |
| Morocco | |
| Netherlands | |
Nederlandse Glucose Industrie B.V. | Lagendijk 5, Koog aan de Zaan, 1541KA, The Netherlands |
Tate & Lyle Netherlands B.V. | Lagendijk 5, Koog aan de Zaan, 1541KA, The Netherlands |
| Poland | |
Tate & Lyle Global Shared Services Sp.z o.o. | Ul. Piotrkowska 157A Łódź 90-440 Poland |
| Singapore | |
Tate & Lyle Asia Pacific Pte. Ltd. | 3 Biopolis Drive, #05-11-16 Synapse, 138623 Singapore |
| Slovakia | |
Tate & Lyle Boleráz s.r.o. | 114, Boleráz, 91908, Slovakia |
Tate & Lyle Slovakia s.r.o. | 114, Boleráz, 91908, Slovakia |
| South Africa | |
Tate and Lyle South Africa Proprietary Limited | 1 Gravel Drive, Kya Sand Business Park, Kya Sand, 2163, |
| South Africa | |
| Spain | |
G.C. Hahn Estabilizantes y Tecnologia para Alimentos | Calle Príncipe de Vergara 112, Planta Cuarta, 28002, Madrid, |
| Spain | |
Ebromyl S.L. | Ps. de la Constitución 10, Entlo. Dcha., 50008, Zaragoza, |
| Spain | |
| Sweden | |
Tate & Lyle Sweden AB | Mäster Samuelsgatan 17, Box 1432, 111 84, Stockholm, |
| Sweden | |
| Thailand | |
Chaodee Modified Starch Co., Ltd (95.3491%) | No. 345, Moo 14, Hin Dat Subdistrict, Dan Khun Thot District, |
| Nakhom Ratchasima Province, Thailand | |
Tate & Lyle Trading (Thailand) Limited | No. 345, Moo 14, Hin Dat Subdistrict, Dan Khun Thot District, |
| Nakhom Ratchasima Province, Thailand | |
| Türkiye | |
Tate and Lyle Turkey Gıda Hizmetleri Anonim Şirketi | Esentepe Mah., Büyükdere Cad., 193 Plaza Kat: 2 193/235A14 |
| Şişli, İstanbul, Türkiye | |
| Ukraine | |
PII G.C. Hahn & Co. Kyiv 4 | 15 Zahorodnia Street, Kyiv, 03150, Ukraine |
| United Arab Emirates | |
Tate & Lyle DMCC | Unit JLT-PH2-RET-X5, Detached Retail X5, Jumeirah Lakes |
| Towers, Dubai, United Arab Emirates |
Financial statements
190
Tate & Lyle PLC Annual Report 2024
Notes to the Consolidated Financial Statements continued
38. Related undertakings continued
Company name | Registered address | |
| US | ||
Staley Holdings LLC | 1209 | North Orange Street, Wilmington, DE 19801, US |
Staley International Inc. | 1209 | North Orange Street, Wilmington, DE 19801, US |
Sweet Green Fields USA LLC | 11 Bellwether Way, Suite 305, Bellingham WA 98225, US | |
Tate & Lyle Finance LLC | 1209 | North Orange Street, Wilmington, DE 19801, US |
TLHUS, Inc. | 1209 | North Orange Street, Wilmington, DE 19801, US |
Tate & Lyle Sucralose LLC | 1209 | North Orange Street, Wilmington, DE 19801, US |
TLI Holding LLC | 1209 | North Orange Street, Wilmington, DE 19801, US |
Tate & Lyle Malic Acid LLC | 1209 | North Orange Street, Wilmington, DE 19801, US |
Tate & Lyle Sugar Holdings, Inc. | 1209 | North Orange Street, Wilmington, DE 19801, US |
Tate & Lyle Americas LLC | 1209 | North Orange Street, Wilmington, DE 19801, US |
Tate & Lyle Citric Acid LLC | 1209 | North Orange Street, Wilmington, DE 19801, US |
Tate & Lyle Solutions USA LLC | 1209 | North Orange Street, Wilmington, DE 19801, US |
Tate & Lyle PP Americas LLC | 1209 | North Orange Street, Wilmington, DE 19801, US |
Tate & Lyle Domestic International Sales II Corporation | 1209 | North Orange Street, Wilmington, DE 19801, US |
Company name | Registered address | |
| US | ||
Primary Products Investments LLC (49.7%) | 1209 | North Orange Street, Wilmington, DE 19801, US |
Company name | Registered number |
Tate & Lyle Export Holdings Limited | 10021479 |
Tate & Lyle Group Services Limited | 00343970 |
Tate & Lyle Holdings Americas Limited | 06390829 |
Tate & Lyle Holdings Limited | 00471470 |
Tate & Lyle Industries Limited | 00699090 |
Tate & Lyle Investments America Limited | 10384878 |
Tate & Lyle Investments Brazil Limited | 05399545 |
Tate & Lyle Technology Limited | 05994725 |
Tate & Lyle UK Limited | 09092139 |
Tate & Lyle Ventures Limited | 03403518 |
191
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Parent Company Balance Sheet
Notes
At 31 March
2024
£m
Restated*
At 31 March
2023
£m
Restated*
At 1 April
2022
£m
ASSETS
Fixed assets
Tangible fixed assets (including right-of-use assets of £9 million
(2023
–
£11
million)) 2 13 14 16
Intangible assets 2
2 2 2
Investments in subsidiary undertakings 2
1 095 1 108 1 098
Total
1 110 1 124 1 116
Current assets
Debtors 4 1 557 1 587 1 619
1 557 1 587 1 619
Creditors – amounts falling due within one year 5 (1 240) (1 288) (1 276)
Borrowings (including lease liabilities of £2 million (2023 – £2 million)) 6
(2) (2) (2)
Provisions for liabilities
– – (1)
Net current assets
315 297 340
Total assets less current liabilities
1 425 1 421 1 456
Creditors – amounts falling due after more than one year 5 – – (2)
Borrowings (including lease liabilities of £9 million (2023 – £13 million)) 6
(9) (13) (17)
Provisions for liabilities
– – (3)
Net assets
1 416 1 408 1 434
Capital and reserves
Called up share capital 8
117 117 117
Share premium account
408 408 407
Capital redemption reserves
8 8 8
Retained earnings
883 875 902
Total shareholders’ funds
1 416 1 408 1 434
* Prior years restated for change in accounting policy following adoption of IFRS 17. See Note 1, Note 7 and Note 13 for further details.
The Company recognised profit for the year of £96 million (2023 – £536 million, restated see Notes 1, 7
and13).
The notes on pages 194 to 198 form part of these financial statements. The Parent Company’s financial
statements on pages 192 to 198 were approved by the Board of Directors on 22 May 2024 and signed on its
behalf by:
Nick Hampton Dawn Allen
Director Director
Tate & Lyle PLC
Registered number: 76535
Financial statements
192
Tate & Lyle PLC Annual Report 2024
Parent Company Statement of Changes in Equity
Called up
share
capital
£m
Share
premium
account
£m
Capital
redemption
reserves
£m
Retained
earnings
£m
Total
equity
£m
At 1 April 2022 –
as previously reported 117 407 8 899 1 431
Impact of IFRS 17 replacement of IFRS 4 – – – 3 3
At 1 April 2022
–
Restated* 117 407 8 902 1 434
Profit for the year – – – 536 536
Total comprehensive income – – – 536 536
Issue of share capital – 1 – – 1
Purchase of own shares including net settlement – – – (13) (13)
Share-based payments – – – 20 20
Dividends paid – – – (570) (570)
At 31 March 2023 –
Restated* 117 408 8 875 1 408
Profit for the year – – – 96 96
Other comprehensive income – – – 1 1
Total comprehensive income
– – – 97 97
Purchase of own shares including net settlement – – – (25) (25)
Share-based payments
– – – 12 12
Dividends paid
– – – (76) (76)
At 31 March 2024
117 408 8 883 1 416
* Prior years restated for change in accounting policy following adoption of IFRS 17. See Note 1, Note 7 and Note 13 for further details.
At 31 March 2024, the Company had realised profits available for distribution in excess of £675 million
(2023– in excess of £650 million).
193
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Notes to the Parent Company Financial Statements
1. Principal accounting policies
Basis of preparation
Tate & Lyle PLC (the Company) is a public limited company incorporated in the United Kingdom and
registered in England. The Company’s ordinary shares are listed on the London Stock Exchange.
The Company’s financial statements are prepared under the historical cost convention in accordance with
Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and the Companies Act 2006
asat 31 March 2024, with comparative figures as at 31 March 2023.
For the reasons set out on pages 143, the Company’s financial statements are prepared on a going
concernbasis.
As permitted by Section 408 of the Companies Act 2006, the Company’s profit and loss account is not
presented in these financial statements. Profit and loss account disclosures are presented in Note 10.
The results of the Company are included in the preceding Group consolidated financial statements.
The following disclosure exemptions from the requirements of UK adopted International Accounting
Standards have been applied in the preparation of these financial statements, in accordance with FRS 101:
the requirements of IAS 7 Statement of Cash Flows
the requirements of paragraph 17 and 18(a) of IAS 24 Related Party Disclosures
the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into
between two or more members of a group, provided that any subsidiary which is a party to the
transaction is wholly owned by such a member
the requirement in paragraph 38 of IAS 1 Presentation of Financial Statements to present comparative
information in respect of paragraph 79(a)(iv) of IAS 1, paragraph 73(e) of IAS 16 Property, Plant and
Equipment and 118(e) of IAS 38 Intangible assets
the requirements of IFRS 7 Financial Instruments: Disclosures
the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting
Estimates and Errors
the requirements of paragraphs 45(b) and 46 to 52 of IFRS 2 Share-Based Payments
the requirements of paragraphs 91 to 99 of IFRS 13 Fair Value Measurement
the requirements of paragraphs 10(d) (statement of cash flows), 10(f) (statement of financial position as
atthe beginning of the preceding period when an entity applies an accounting policy retrospectively),
38(A to D) (comparative information), 111 (statement of cash flows) and 134 to 136 (capital management)
ofIAS 1 Presentation of Financial Statements
the requirements of paragraphs 52 and 58 of IFRS 16 Leases
the requirements of paragraph 16 of IAS 1.
The Company intends to maintain these disclosure exemptions in future years.
Accounting policies
Investments in subsidiary undertakings
Subsidiaries are all entities over which the Company has control. The Company controls an entity when it is
exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect
those returns through its power over the entity.
Investments in subsidiary undertakings represent interests that are directly owned by the Company and are
stated at cost less amounts written off for any permanent diminution in value.
Tangible fixed assets
Land and buildings mainly comprise of administrative facilities. Plant and machinery mainly comprise of
office equipment. Fixed assets are stated at historical cost less accumulated depreciation and impairment
and are reviewed for impairment when any changes in circumstances indicate that their carrying amounts
may not be recoverable.
Intangible assets
Intangible assets comprise computer software and are amortised on a straight-line basis over the periods
of their expected benefit to the Company. Capitalised costs in respect of core global IS/IT systems included
within computer software are being amortised over a period of five to seven years and are reviewed for
impairment when any changes in circumstances indicate that their carrying amounts may not be recoverable.
Retirement benefits
The Company participates in a defined benefit pension scheme in which certain of its subsidiaries also
participate. The Company, which is not the principal employer, cannot identify its share of the underlying
assets and liabilities of the scheme. Accordingly, as permitted by IAS 19 Employee Benefits, the Company
accounts for the scheme as a defined contribution scheme and charges its contributions to the scheme to
the profit and loss account in the periods in which they fall due.
Share-based payments
As described in Note 32 to the consolidated financial statements, the Company operates share-based
incentive plans under which it grants awards over its ordinary shares to its own employees and to those
ofits subsidiary undertakings. All of the awards granted under the existing plans are classified as equity-
settled awards.
Estimating fair value for share-based transactions requires determination of the most appropriate valuation
model which depends on the terms and conditions of each individual grant. This estimation also requires
determination of the most appropriate inputs to the valuation model and represents a key source of
estimation uncertainty.
For awards granted to its own employees, the Company recognises an expense that is based on the
fairvalue of the awards measured at the grant date using a Black-Scholes option pricing methodology.
Forawards granted to employees of its subsidiary undertakings, the Company recognises a capital
contribution to the subsidiary and a corresponding credit to equity calculated on the same basis as
the expense that it recognises for awards to its own employees.
Financial statements
194
Tate & Lyle PLC Annual Report 2024
Notes to the Parent Company Financial Statements continued
1. Principal accounting policies continued
Guarantees – restatement following change in accounting policy
From time to time, the Company provides guarantees to third parties in respect of the indebtedness of its
subsidiary undertakings and joint ventures. The Directors consider these guarantees to be insurance
arrangements. IFRS 4 was replaced by IFRS 17 Insurance Contracts
on 1 April 2023. Where the issuer has
explicitly asserted that it regards financial guarantees as insurance contracts and has previously applied
IFRS 4 which used to be applicable to insurance contracts, the issuer may choose to apply either IFRS 17
orIAS 32, IFRS 7 and IFRS 9 to account for such guarantees. The Company has made an election to apply
IAS 32, IFRS 7 and IFRS 9 and this has been treated as a change in accounting policy, with restatement of
comparatives for the previous reporting periods. Refer to Note 7 and Note 13 for details of the restatement.
As a result of this change in accounting policy, liabilities relating to guarantees issued by the Company on
behalf of its subsidiaries are initially recognised at fair value and subsequently measured at the higher of:
the Expected Credit Loss (ECL) measured using the general approach; and
the amount initially recorded less, when appropriate, accumulated amortisation
The Company treats such guarantees issued as capital contributions to its subsidiaries unless payments
are to be received, in which case a separate receivable is recognised.
Own shares
Own shares represent the Company’s ordinary shares that are held by the Company in treasury or by a
sponsored Employee Benefit Trust that are used to satisfy awards made under the Company’s share-
based incentive plans. When own shares are acquired, the cost of purchase in the market is deducted from
the profit and loss account reserve. Gains or losses on the subsequent transfer or sale of own shares are
also recognised in the profit and loss account reserve.
Dividends
Dividends on the Company’s ordinary shares are recognised when they have been appropriately
authorised and are no longer at the Company’s discretion. Accordingly, interim dividends are recognised
when they are paid and final dividends are recognised when they are declared following approval by
shareholders at the Company’s AGM. Dividends are recognised as an appropriation of shareholders’ funds.
Details of dividends paid and proposed are set out in Note 9.
Dividend income received from subsidiary companies is recognised when the right to receive the payment
is established.
Debtors
Debtors are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised
costs or their recoverable amount. The Company recognises an allowance for expected credit losses based
on the difference between the contractual cash flows due in accordance with the contract and all the cash
flows that the Group expects to receive, discounted at an approximation of the original effective interest rate.
Creditors
Trade payables are predominantly short term and are initially recognised at fair value, which is generally the
invoice amount. The effects of the time-value of money are not material.
2. Fixed assets
Land and
buildings
£m
Plant and
machinery
£m
Intangible
assets
£m
Restated*
Investments
in
subsidiaries
£m
Cost
At 1 April 2023 22 5 7 1 258
Additions – 1 1 3
Transfer 3 (3) – –
Disposals (5) (2) (1) –
At 31 March 2024
20 1 7 1 261
Accumulated depreciation/amortisation/impairment
At 1 April 2023 8 5 5 150
Depreciation/amortisation/impairment charge 2 – 1 16
Transfer 3 (3) – –
Disposals (5) (2) (1) –
At 31 March 2024
8 – 5 166
Net book value at 31 March 2023 14 – 2 1 108
Net book value at 31 March 2024 12 1 2 1 095
* Prior years restated for change in accounting policy following adoption of IFRS 17. See Note 1, Note 7 and Note 13 for further details.
3. Leases
At the commencement date of the lease, the Company recognises lease liabilities measured at the present
value of future lease payments. In calculating the present value of lease payments, the Company uses the
incremental borrowing rate at the lease commencement date.
The right-of-use assets presented in the Company balance sheet comprise of tangible fixed assets being
leases of office buildings. The Company recognises right-of-use assets at the commencement date of the
lease. Right-of-use assets are measured at cost including the amount of lease liabilities recognised and
initial direct costs incurred less any incentives granted by the lessor. Right-of-use assets are subject to
impairment. Right-of-use assets are depreciated over the shorter of the lease term and the useful life of the
right-of-use assets.
Movements in right-of-use assets are included in land and buildings in Note 2 Fixed Assets.
The total cash outflow for leases in the year ended 31 March 2024 was £3 million (2023 – £2 million).
Leases of buildings usually have lease terms between 1 and 16 years.
195
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Notes to the Parent Company Financial Statements continued
4. Debtors
At 31 March
2024
£m
Restated*
2023
£m
Due within one year
Current tax 19 24
Amounts owed by subsidiary undertakings
1
1 528 1 550
Other debtors
1,2
5 10
Due after one year
Deferred tax
5 3
Total
1 557 1 587
* Restated for change in accounting policy following adoption of IFRS 17. See Note 1, Note 7 and Note 13 for further details.
1 The effective interest rate applicable to amounts owed by subsidiary undertakings at 31 March 2024 is 6.2% (2023 – 3.6%). Amounts owed by
subsidiary undertakings are receivable on demand. There is no security for non-trading amounts. The Company has assessed the effect of
expected credit loss on amounts owed by subsidiary undertakings and other debtors and has concluded that no provision is necessary
(2023– £nil).
2 Includes £1 million (2023– £1 million) in relation to financial guarantee contracts.
5. Creditors
At 31 March
2024
£m
Restated*
2023
£m
Due within one year
Amounts owed to subsidiary undertakings
1
1 220 1 258
Other creditors
2
8 8
Accruals and deferred income
12 22
Total
1 240 1 288
* Restated for change in accounting policy following adoption of IFRS 17. See Note 1, Note 7 and Note 13 for further details.
1 The effective interest rate applicable to amounts owed to subsidiary undertakings at 31 March 2024 was 6.8% (2023 – 4.1%). Amounts owed to
subsidiary undertakings are repayable on demand. There is no security for non-trading amounts.
2 Includes £3 million (2023 – £4 million) related to financial guarantee contracts.
6. Borrowings
At 31 March 2024, borrowings of £11 million (2023 – £15 million) relate to lease liabilities. £2 million
(2023 – £2 million) of the total relates to current lease liabilities. Lease liabilities are measured at the present
value ofthe future lease payments, discounted using lessee’s incremental borrowing rate at the lease
commencement date.
7. Guarantees and financial commitments – restatement following change in accounting policy
On adoption of IFRS 17, at 31 March 2024, the Company has recognised financial guarantee contracts
withacarrying value of £3 million (2023 restated – £4 million; 2022 restated – £5 million).
These guarantees have been given in respect of committed financing of certain of its subsidiaries and joint
ventures totalling £1,187 million (2023 – £1,318 million; 2022 – £1,312 million), against which amounts drawn
totalled £540 million (2023 – £652 million; 2022 – £635 million). These guarantees relate principally to the
guarantee provided on behalf of Tate & Lyle International Finance PLC, the Group’s treasury company in
respect of the £537 million (US$680 million) US Private Placement Notes detailed in Note 26 of the Group’s
financial statements (2023 – £645 million, US$800 million; 2022– £607 million, US$800 million).
The Company has also given guarantees in respect of lease commitments of certain of its subsidiaries
andjoint ventures totalling £19 million (2023 – £25 million; 2022 – £100 million). In addition, theCompany
provides other guarantees in the normal course of business totalling £42 million (2023 – £43 million;
2022 – £34 million).
The total amounts drawn against the guarantees of £601 million (2023 – £720 million; 2022 – £769 million)
represent the maximum exposure to credit risk relating to these guarantees (i.e. they represent the
maximum amount the Company would need to pay if the financial guarantees were to be called upon).
TheCompany has assessed the probability of material loss under these guarantees as remote.
Commitments in respect of retirement benefit obligations are detailed in Note 11.
The Company will guarantee the debts and liabilities of certain of its UK subsidiaries at 31 March 2024 in
accordance with section 479C of the Companies Act 2006. The Company has assessed the probability
ofloss under these arrangements as remote.
At 31 March 2024, the Company had outstanding capital commitments of £nil million (2023 – £nil).
Financial statements
196
Tate & Lyle PLC Annual Report 2024
Notes to the Parent Company Financial Statements continued
8. Share capital and share premium
Allotted, called up and fully paid equity share capital
Year ended 31 March 2024 Year ended 31 March 2023
Number of
shares*
Cost
£m
Number of
shares*
Cost
£m
At 1 April 401 637 112 117
468 534 065 117
Impact of share consolidation – –
(66 933 968) –
Allotted under share option schemes
57 349 –
37 015 –
At 31 March
401 694 461 117
401 637 112 117
* The nominal value of each share increased from 25 pence at 31 March 2022 to 29
1
/
6
pence as a result of the share consolidation which took
place on 3 May 2022.
Refer to Note 23 in the consolidated financial statements for details of movement in share premium and
shares held in the Employee Benefit Trust.
9. Dividends on ordinary shares
Dividends on ordinary shares in respect of the financial year:
Year ended 31 March
2024
Pence
2023
Pence
Per ordinary share:
–
interim dividend paid
6.2 5.4
–
final dividend proposed 12.9
13.1
Total dividend
19.1
18.5
The Directors propose a final dividend for the financial year of 12.9p per ordinary share that, subject to
approval by shareholders, will be paid on 2 August 2024 to shareholders who are on the Register of
Members on 21 June 2024.
Dividends on ordinary shares paid in the financial year:
Year ended 31 March
2024
£m
2023
£m
Final dividend paid relating to the prior financial year 52 51
Interim dividend paid relating to the financial year 24 22
Total dividend paid relating to prior and current financial year
76 73
Special dividend – 497
Total dividend paid 76 570
On 16 May 2022, the Group returned £497 million to ordinary shareholders by way of a special dividend of
£1.07 per existing ordinary share in the capital of Tate & Lyle PLC. In order to maintain the comparability, so far
as possible, of Tate & Lyle PLC’s share price before and after the special dividend, the Group also completed
a share consolidation resulting in ordinary shareholders receiving six new ordinary shares with a nominal
value of 29
1
/
6
pence each for every seven existing ordinary shares that they held.
Based on the number of ordinary shares outstanding at 31 March 2024 and the proposed dividend per share,
the final dividend for the financial year is expected to amount to £51 million.
10. Profit and loss account disclosures
The Company recognised a profit for the year of £96 million (2023 – £536 million (restated, see Note 1)).
Fees payable to the Company’s external auditor, Ernst & Young LLP, for the audit of the Company’s
financialstatements amounted to £0.1 million (2023 – £0.1 million). Refer to Note 7 of the consolidated
financial statements.
The Company employed an average of 151 people (including Directors) during the year (2023 – 156).
Staffcosts are shown below:
Year ended 31 March
2024
£m
2023
£m
Wages and salaries 25 28
Social security costs 4 6
Other pension costs
4 3
Share-based incentives
11 9
Total
44 46
Directors’ emoluments disclosures are provided in the Directors’ Remuneration Report on pages 108 to 126 and
in Note 9 of the consolidated financial statements.
No deferred tax assets have been recognised in respect of tax losses of £342 million (2023 – £341 million)
as there is uncertainty as to whether taxable profits against which these assets may be recovered will
beavailable.
197
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Notes to the Parent Company Financial Statements continued
11. Retirement benefit obligations
Plan information
The Company participates in a defined benefit plan together with another subsidiary company, Tate & Lyle
Industries Ltd. In the 2020 financial year, a bulk annuity insurance policy ‘buy-in’ was completed for the main
UK scheme. In June 2023, the main UK pension scheme entered winding up. This ‘buy-out’ is expected to be
completed in the Group’s 2025 financial year. Refer to Note 31 of the consolidated financial statements for
further details. The plan is closed to new entrants and future accruals. The Company has circa 300 pensioners
and deferred pensioners out of a total membership of 4,290 (excluding dependent beneficiaries).
The Company also operates a defined contribution pension plan. Contributions payable by the Company
tothe plan during the year amounted to £3 million (2023 – £2 million).
The Company has provided a full liability guarantee in respect of the pension obligations of Tate & Lyle
Industries Ltd, the other participating employer.
Funding commitments of the plan
As a result of the main UK scheme entering winding up, a triennial actuarial valuation, which is normally
required by UK regulations, no longer needs to be completed. Following the purchase of the bulk annuity
insurance policy (buy-in) in the main UK scheme, both core contributions to the scheme and supplementary
contributions to the secured funding account have ceased. Whilst the insurer has now assumed
responsibility for the ongoing administration of the main UK scheme, the Group continues to fund other
ongoing administration costs until the ‘buy-out’ is completed.
12. Events after the balance sheet date
In May 2024, on maturity of an intercompany loan receivable, the Company used 50% of the proceeds
received (£395 million) to subscribe for ordinary shares in the same subsidiary company.
There are no other post balance sheet events requiring disclosure in respect of the year ended
31March2024.
13. Change in accounting policy
As discussed in Note 1, following the adoption of IFRS 17 in the year, the Company has made an election to
apply IAS 32, IFRS 7 and IFRS 9 to treat guarantees as financial guarantee contracts. This has been treated
as a change in accounting policy, with restatement of comparatives for the previous reporting periods.
Theimpact of the adoption of this revised accounting policy is set out below.
Impact of change in accounting policy
As reported
£m
Adjustment
£m
As
restated
£m
At 1 April 2022
Investments in subsidiary undertakings 1 092 6 1 098
Total fixed assets 1 110 6 1 116
Debtors 1 617 2 1 619
Creditors – amounts falling due within one year (1 271) (5) (1 276)
Net current assets
343
(3)
340
Retained earnings
899 3 902
Total equity
1 431 3 1 434
Impact of change in accounting policy
As reported
£m
Adjustment
£m
As
restated
£m
At 31 March 2023
Investments in subsidiary undertakings 1 101 7 1 108
Total fixed assets 1 117 7 1 124
Debtors 1 586 1 1 587
Creditors – amounts falling due within one year (1 284) (4) (1 288)
Net current assets 300 (3) 297
Retained earnings 871 4 875
Total equity 1 404 4 1 408
Financial statements
198
Tate & Lyle PLC Annual Report 2024
Useful information
In this section
200 Group five-year summary
202 Additional information
202 Restatement of prior year
alternative performance
measures for treatment of
M&A-related costs
203 Information for investors
204 Glossary
IBC Definitions/explanatory notes
199
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
The results for the year 2020 have not been restated to reflect discontinued operations and have not
been restated to include other M&A activity-related items in adjusting items.
Year ended 31 March
2020
£m
2021*
£m
2022**
£m
2023**
£m
2024
£m
Results summary
Continuing operations
Revenue 2 882 1 211 1 375 1 751 1 647
Food & Beverage Solutions 211 273 281
Sucralose 53 58 52
Primary Products Europe (20) (9) (5)
Adjusted EBITDA 249 244 322 328
Adjusted operating profit 331 163 174 251 258
Amortisation of acquired intangible assets
and other fair value adjustments (11) (10) (10) (25) (25)
M&A activity-related items (3) (4) (2) (2)
Exceptional costs (24) (34) (93) (28) (24)
Operating profit 296 116 67 196 207
Net finance expense (28) (26) (25) (20) (6)
Share of profit/(loss) of joint ventures 28 – – (24) 25
Profit before tax 296 90 42 152 226
Income tax expense (51) (1) (16) (25) (47)
Profit for the year from continuing operations 245 89 26 127 179
Profit for the year from discontinued
operations – 164 210 63 9
Profit for the year attributable to owners
of the Company 245 253 236 190 188
Adjusted profit before tax 331 137 149 255 287
* 2021 financial year onwards reflects the impact of discontinued operations (see Notes 1 and 12). Adjusted EBITDA is provided for
financial years starting from the 2022 financial year.
** 2022 financial year onwards reflects the impact of including other M&A activity-related items in adjusting items. 2022 and 2023
financial years have been restated accordingly. Refer to Note 4.
At 31 March
2020
£m
2021
£m
2022
£m
2023
£m
2024
£m
Employment of capital
Goodwill and intangible assets 331 345 278 452 406
Property, plant and equipment 1 190 1 105 431 488 528
Other assets 63 59 46 42 28
Working capital (including provisions and
non-debt derivatives) 409 421 258 417 382
Net pension deficit (203) (140) (107) (100) (82)
Net assets held for sale (excluding cash and
leases included in net debt) – – 1 394 – –
Net operating assets 1 790 1 790 2 300 1 299 1 262
Investment in joint ventures 91 104 – 199 165
Net debt (451) (417) (626) (238) (153)
Net tax liability (37) (23) (54) (70) (35)
Total net assets 1 393 1 454 1 620 1 190 1 239
Capital employed
Called up share capital 117 117 117 117 117
Reserves 1 276 1 336 1 502 1 072 1 121
1 393 1 453 1 619 1 189 1 238
Non-controlling interests – 1 1 1 1
Total equity 1 393 1 454 1 620 1 190 1 239
Group Five-Year Summary
200
Useful information
Tate & Lyle PLC Annual Report 2024
Per share information 2020 2021* 2022** 2023** 2024
Earnings per share continuing operations:
– basic (pence) 52.8p 19.3p 5.5p 31.3p 45.2p
– diluted (pence) 52.1p 19.1p 5.5p 30.8p 44.4p
Basic earnings per share total operations:
– reported (pence) 52.8p 54.4p 50.7p 47.0p 47.3p
Diluted earnings per share total operations:
– reported (pence) 52.1p 53.8p 50.2p 46.2p 46.5p
– adjusted diluted (pence) 57.8p 61.8p 56.8p 49.2p 55.5p
Dividends per ordinary share (pence) 29.6p 30.8p 21.8p 18.5p 19.1p
Closing share price at 31 March (pence) 656.0p 767.2p 732.2p 784.6p 617.5p
Closing market capitalisation at 31 March
(£ million) 3 073 3 594 3 431 3 151 2 480
Business ratios
Net debt to EBITDA (times)
1
0.9x 0.8x 0.7x 0.7x 0.5x
Net debt divided by pre-exceptional EBITDA
Gearing 32% 29% 39% 20% 12%
Net debt as a percentage of total net assets
2
Adjusted EBITDA margin 20.5% 17.8% 18.4% 19.9%
Adjusted EBITDA as a percentage of revenue
Adjusted operating margin 11.5% 12.2% 10.1% 14.2% 15.7%
Adjusted operating profit as a percentage of
revenue
2
Return on capital employed 17.5% 17.4% 16.9% 17.6% 17.4%
Profit before interest, tax and exceptional
items as a percentage of invested operating
capital
Dividend cover (times)
Basic earnings per share divided by
dividends per share
2
1.8x 1.8x 1.6x 2.6x 2.5x
Adjusted earnings per share divided by
dividends per share
2
2.0x 2.1x 1.8x 2.7x 2.9x
1 Following the refinancing of the revolving credit facility in the year ended 31 March 2020 the amended covenant definitions were
adopted. In light of this, the Group has simplified the calculation of these KPIs to make them more directly related to information in the
Group’s financial statements. Refer to Note 4.
2 These metrics have been calculated using the results of both continuing and discontinued operations.
* 2021 financial year onwards reflects the impact of discontinued operations (see Notes 1 and 12).
** 2021 financial year onwards reflects the impact of including other M&A activity-related items in adjusting items. 2021, 2022 and 2023
financial years have been restated accordingly. Refer to Note 4.
Group Five-Year Summary continued
201
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
Currency exchange rates
The principal exchange rates used to translate the results, assets and liabilities and cash flows of the
Group’s foreign operations into pound sterling were as follows:
Year ended 31 March
2024
£1 =
2023
£1 =
Average rates
US dollar 1.26 1.20
Euro 1.16 1.16
Year-end closing rates
US dollar 1.26 1.24
Euro 1.17 1.14
Calculation of changes in constant currency
Where changes in constant currency are presented in this statement, they are calculated by
retranslating current year results at prior year exchange rates. The following table provides a
reconciliation between the 2024 performance at actual exchange rates and at constant currency
exchange rates. Absolute numbers presented in the tables are rounded for presentational purposes,
whereas the growth percentages are calculated on unrounded numbers.
Adjusted performance
Continuing operations
2024
£m
Fx
£m
2024 at
constant
currency
£m
Underlying
growth
£m
2023*
£m
Change
%
Change in
constant
currency
%
Revenue 1 647 61 1 708 (43) 1 751 (6%) (2%)
Food & Beverage Solutions 281 12 293 20 273 3% 8%
Sucralose 52 355 (3)58(10%)(4%)
Primary Products Europe (5) –(5)4(9)35%34%
Adjusted EBITDA 328 15 343 21 322 2% 7%
Adjusted operating profit 258 13 271 20 251 3% 8%
Net finance expense (6) (1) (7) 13 (20) 67% 66%
Share of adjusted profit of joint
venture 35 237 132446%53%
Adjusted profit before tax 287 14 301 46 255 12% 18%
Adjusted income tax expense (62) (3) (65) (15) (50) (22%) (29%)
Adjusted profit after tax 225 11 236 31 205 10% 16%
Adjusted EPS (pence) pro-forma 55.5p 2.8p 58.3p 8.7p 49.6p 12% 18%
* Restated to include other M&A activity-related items in adjusting items. See Note 4.
In the year ended 31 March 2024, the Group amended its alternative performance measures to fully
exclude incremental merger and acquisition activity-related costs.
Incremental M&A activity-related items are excluded as they are a direct result of completing or
attempting to complete an acquisition or disposal. Their exclusion allows a better understanding of
the Group’s underlying financial performance. Such items include:
1. Transaction costs for acquisitions and disposals including advisory, legal, accounting, valuation
and other professional or consulting services;
2. Acquisition-related remuneration costs; and
3. The cost of integrating an acquisition into the Group, or separating a disposal from the Group, in
the 12 months following the associated transaction.
Alternative performance measures for the year ended 31 March 2024 are reported excluding these
costs and the comparatives for the year ended 31 March 2023 have been restated accordingly.
The additional information shown here provides details supporting the restatement of information
related to the year ended 31 March 2023.
Income statement measures
Year ended 31 March 2023
As reported
previously
£m £m
Restated
£m
Operating profit 196 – 196
Depreciation 59 – 59
Amortisation 36 – 36
Exceptional items 28 – 28
M&A costs – 2 2
Unwind of fair value adjustments 1 – 1
Adjusted EBITDA 320 2 322
Adjusted profit before tax 253 2 255
Adjusted profit after tax 203 2 205
Adjusted earnings per share 49.3p 0.3p 49.6p
For segmental reporting purposes, all restatements relate the Food & Beverage Solutions reporting
segment, with EBITDA for that segment increasing from £271 million to £273 million.
Cash flow measures
Year ended 31 March 2023
As reported
previously
£m £m
Restated
£m
Net cash flow from operating activities 66 – 66
Capital expenditure (net) (71) – (71)
Tax paid in respect of Primient partnership 5 – 5
Exceptional cash flows 101 – 101
Interest received 11 – 11
M&A activity-related items – 2 2
Free cash flow attributable to discontinued operations 7 – 7
Free cash flow 119 2 121
Additional information Restatement of prior year alternative performance
measures for treatment of M&A-related costs
202
Useful information
Tate & Lyle PLC Annual Report 2024
Information for investors
Shareholder enquiries
Ordinary shares
Equiniti Limited
Information about how to manage your shareholdings can be
found at www.shareview.co.uk. The website also provides
answers to commonly asked shareholder questions and has links
to downloadable forms, guidance notes and Company history
fact sheets. You can also send your enquiry via secure email
from the Shareview website.
Telephone enquiries
0371 384 2063 (for UK calls)
1
1 Lines open 8.30am to 5.30pm (UK time), Monday to Friday
(excluding public holidays in England and Wales).
Written enquiries
Equiniti Limited, Aspect House, Spencer Road, Lancing,
West Sussex, BN99 6DA.
American Depositary Shares (ADS)
Citibank Shareholder Services
The Company’s shares trade in the US on the over-the-counter
(OTC) market in the form of ADSs and these are evidenced by
American Depositary Receipts (ADRs). The shares are traded
under the ticker symbol TATYY.
Telephone and email enquiries
Tel: 1-877-CITI-ADR (toll free)
Tel: 1-781-575-4555 (outside US)
Fax: 1-201-324-3284
Email: Citibank@shareholders-online.com
Written enquiries
Citibank Shareholder Services
P.O. Box 43077
Providence
Rhode Island 02940-3077
USA
Tate & Lyle website and share price information
Tate & Lyle’s website provides other information relevant to
shareholders of the Company. The share price is available
on the website with a 15-minute delay.
Financial calendar
2024 Annual General Meeting 25 July 2024
Announcement of half-year results for the six
months to 30 September 2024 7 November 2024
1
Announcement of full-year results for the year
ending 31 March 2025 22 May 2025
1
2025 Annual General Meeting 24 July 2025
1
Dividends paid on ordinary shares during the year ended
31 March 2024
Date
Dividend
description
Dividend
per share
2 August 2023 Final 2023 13.1p
5 January 2024 Interim 2024 6.2p
Dividend calendar for dividends on shares
2024
final
2025
interim
2025
final
Announced 23 May 2024 7 November 2024
1
22 May 2025
1
Payment date 2 August 2024
2
3 January 2025
1
1 August 2025
1,2
1 Provisional date.
2 Subject to approval of shareholders.
Electronic communications
Shareholder documents are only sent in paper format to
shareholders who have elected to receive documents in this
way. This approach enables the Company to reduce printing
and distribution costs and the impact of the documents on
the environment.
Shareholders who wish to receive email notifications should
register online at www.shareview.co.uk, using their shareholder
reference number that is on either their share certificate or other
correspondence.
Dividend payments
Dividend Reinvestment Plan
The Company operates a Dividend Reinvestment Plan (DRIP)
which enables shareholders to use their cash dividend to buy
additional shares in Tate & Lyle PLC. Further information can be
obtained from Equiniti.
Direct into your bank account
We encourage shareholders to have their dividends paid
directly into their bank or building society account; dividend
confirmations are then mailed to shareholders separately. This
method avoids the risk of dividend cheques being delayed or
lost in the post. If you live outside the UK, Equiniti also offers an
overseas payment service whereby your dividend is converted
into your local currency. Further information on mandating your
dividend payments and the overseas payment service can be
obtained from Equiniti.
Beware of share fraud
Shareholders should be very wary of any unsolicited calls or
correspondence offering to buy or sell shares at a discounted
price. These calls are typically from fraudsters operating ‘boiler
rooms’. Boiler rooms use increasingly sophisticated means to
approach investors and often leave their victims out of pocket.
If you are concerned that you may have been targeted by
fraudsters please contact the Financial Conduct Authority (FCA)
Consumer Helpline on 0800 111 6768.
203
Strategic report Governance Financial statements Useful information
Tate & Lyle PLC Annual Report 2024
A
Adjusted EBITDA
Earnings before interest, tax, depreciation, amortisation (excluding
amortisation of acquired intangibles) and exceptional items.
Adjusted profit before tax
Profit before tax (as defined separately), adjusted for amortisation of
acquired intangible assets and net exceptional items.
C
Carbon dioxide equivalent (CO
2
e)
One metric tonne of carbon dioxide or an amount of any other
greenhouse gas with an equivalent global warming potential, calculated
consistently with international carbon reporting practices.
‘Clean label’
A term used in the food and beverage industry generally to refer to shorter
or simpler ingredient lists or less processed ingredients that appeal more
to some consumers than those containing complex ingredients.
Interpretations may vary.
CLARIA
®
A line of clean-label starches with neutral taste and colour comparable
to normal modified starches that is versatile across a broad range of
applications and sophisticated processes.
Constant currency
Where changes in constant currency are presented, they are calculated
by retranslating current year results at prior year exchange rates.
Reconciliation between the 2024 performance at actual exchange rates
and at constant currency exchange rates has been included in the
additional information on page 202.
Co-products
Corn gluten feed, corn gluten meal and corn oil.
Continuing operations
Continuing operations comprise: Food & Beverage Solutions; Sucralose
and Primary Products Europe.
D
Discontinued operations
Discontinued operations is the Primient business.
DOLCIA PRIMA
®
Allulose
Low-calorie sugar that offers a superior, new taste experience.
E
EHSQS
Environment, Health, Safety, Quality and Security.
F
Free cash flow
Free cash flow represents cash generated from continuing operations
after net interest and tax paid, after capital expenditure and excluding the
impact of exceptional items.
G
Greenhouse gas (GHG)
Any of the following: carbon dioxide (CO
2
), methane (CH
4
), nitrous oxide
(N
2
O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur
hexafluoride (SF
6
).
N
Net zero
For Tate & Lyle, this means achieving net zero by 2050 by reducing
our Scope 1, 2 and 3 GHG emissions to as close to zero as possible
and neutralising residual emissions through limited external carbon
offset purchases.
New Products
New Products are products for a period of years after their launch.
The period ranges from five years to 15 years depending on the degree
to which the product is new to the market.
To reflect the differentiated profiles of ingredients launched from the
innovation pipeline we have adapted the period from launch for which
we consider ingredients to be New Products as follows:
• Breakthrough – ‘new to the world’ products or processes that create
a new market entrant. New Product lifecycle 15 years.
• Next generation – breakthrough process technology to make an
existing product or a new addition to our portfolio but not to market.
New Product lifecycle seven years.
• Line extensions – new product that extends already existing
functionality or range. New Product lifecycle five years.
Launches from our innovation pipeline will be considered New Products
for the years of their lifecycle from the year of first launch.
O
Operating profit (also referred to as profit before interest and tax (PBIT))
Revenue less net operating expenses.
P
Profit before tax (PBT)
Sales, less net operating expense, less net finance expense and including
the Group’s share of profit after tax of joint ventures.
PROMITOR
®
Soluble Fibre
A prebiotic soluble fibre.
PUREFRUIT
TM
Monk Fruit Extract
A versatile calorie-free sweetener that blends well with other sweeteners.
S
SPLENDA
®
Sucralose
A zero-calorie sweetener, the manufacturing process for which starts
with sugar.
Sucralose
An operating segment comprising the business activities of the
manufacture and sale of SPLENDA
®
Sucralose to customers.
T
TASTEVA
®
A zero-calorie sweetener made from stevia.
Total operations
Total operations comprises our continuing operations and discontinued
operations.
Glossary
204
Useful information
Tate & Lyle PLC Annual Report 2024
Non-reliance statement
This Annual Report has been prepared solely to provide additional
information to shareholders to assess the Group’s strategy and the
potential of that strategy to succeed, and should not be relied upon by
any other party or for any other purpose.
Cautionary statement
This Annual Report contains certain forward-looking statements with
respect to the financial condition, results, operations and businesses
of Tate & Lyle PLC. These statements and forecasts involve risk and
uncertainty because they relate to events and depend upon
circumstances that may occur in the future. There are a number of factors
that could cause actual results or developments to differ materially
from those expressed or implied by these forward-looking statements
and forecasts.
Tate & Lyle PLC
Tate & Lyle PLC is a public limited company listed on the London Stock
Exchange and is registered in England and Wales.
More information about Tate & Lyle can be found on the Company’s
website, www.tateandlyle.com
Definitions
In this Annual Report:
• ‘Company’ means Tate & Lyle PLC
• References to ‘Tate & Lyle’, ‘Group’, ‘we’, ‘us’ or ‘our’ means Tate & Lyle
PLC and its subsidiaries
• ‘Primient’ means the business comprised of Tate & Lyle’s former
Primary Products business in the Americas, and Tate & Lyle’s former
interests in Almex and Bio-PDO
• ‘Almex’ means Almidones Mexicanos S.A. de C.V.
• ‘Covation’ means Primient Covation LLC, formerly known as Covation
Biomaterials LLC and prior to that, DuPont Tate & Lyle Bio Products
Company LLC (‘Bio-PDO’).
• ‘during the year’ means during the financial year ended 31 March 2024.
SPLENDA
®
SPLENDA
®
is a trademark of Heartland Consumer Products LLC.
Environmental statement
This Annual Report has been printed on Max Ultra White Matt, which is
made of Forest Stewardship Council
®
(FSC
®
) certified and other
controlled materials.
The paper is Carbon Balanced with World Land Trust, an international
conservation charity, which offset carbon emissions through the
purchase and preservation of high conservation value land. Through
protecting standing forests, under threat of clearance, carbon is locked in
that would otherwise be released. These protected forests are then able
to continue absorbing carbon from the atmosphere, referred to as REDD
(Reduced Emissions from Deforestation and forest Degradation).
This is now recognised as one of the most cost-effective and swiftest
ways to arrest the rise in atmospheric CO
2
and global warming effects.
Additional to the carbon benefits is the flora and fauna this land preserves,
including a number of species identified at risk of extinction on the IUCN
Red List of Threatened Species.
Printed sustainably in the UK by Pureprint, a Carbon Neutral company
with FSC
®
Chain of custody and an ISO 14001-certified environmental
management system recycling 100% of all dry waste.
If you have finished with this Annual Report and no longer wish to retain it,
please pass it on to other interested readers or dispose of it in your
recycled paper waste.
Definitions/explanatory notes
Designed and produced by Registered office
Tate & Lyle PLC
5 Marble Arch
London W1H 7EJ
Tel: +44 (0)20 7257 2100
Fax: +44 (0)20 7257 2200
Company number: 76535
Strategic report Governance Financial statements Useful information
206
Useful information
www.tateandlyle.com