Tate & Lyle Share Discussion Threads

[wad collector] 05/10/2020 10:01

HY results out a month today. share price has been meandering for the last 6 months ; though that is better than many of mine.

[wad collector] 21/9/2020 23:00

Bottomed out today at 666 again. An omen?

[essentialinvestor] 06/8/2020 08:14

Weaker USD v GBP unhelpful for TATE.

[essentialinvestor] 28/7/2020 10:25

Excluding lease liabilities net debt is now approx £224 million.


In 2007 (from memory) TATE had net debt of around £1 Billion,
Not including lease liabilities.

Their liquidity and gearing position has been completely transformed over
the last decade plus. Plus the pension plan derisked.

[essentialinvestor] 28/7/2020 00:40

Because TATE is primarily a food ingredients business., it has exposure to out-of-home consumption!.
So does Unilever.

Would expect the ethanol byproduct is coming in very useful atm, it's a
major component in hospital grade hand sanitizer- usually 70% alcohol from memory.

On fixed costs, well they manufacture so yes there are fixed costs.

They continue to pay down net debt, £67 million reduction in 3 months.
When you strip out IRFS 16, now at the lowest level I can remember.

That low debt gives increasing flexibility to acquire in the specialist food ingredients space.
With New Product revenue growing at 9%, organic growth and development looks to be paying dividends.

[philanderer] 27/7/2020 23:55

Analysts at Berenberg slightly raised their target price on 'hold' rated food ingredients manufacturer Tate & Lyle on Monday, stating the group's first-quarter update was "sweeter than expected".

Berenberg upped their target price on Tate & Lyle's stock from 665p to 695p after having cut its 2021 forecasts for the group by over 20% since March.

Although volumes in T&L's food and beverage solutions unit declined 2%, broadly in line with its forecast for a 1% decline, volumes in the primary products division declined just 12% - much better than its expectations of a 20% drop. Overall, group revenues decreased 5%, helped by positive price/mix.

The German bank said recent results had shown the progress Tate had made in important areas like product mix and productivity

measures but the analysts highlighted that as with peers, where Tate's 2021 full-year earnings ultimately land will depend on the timing of lockdowns and subsequent easing measures.

However, Berenberg noted that Covid-19 had again highlighted several vulnerabilities of Tate's business model - high exposure to out-of-home consumption, high fixed costs and lingering exposure to commodities like ethanol.

But on the more positive side, Berenberg said Tate's liquidity position was "strong" and noted that the group was now trading on 14x calendar 2021 price-to-earnings ratio - a 30% discount to global staples - broadly in line with its 25% average discount for the past five years.

[essentialinvestor] 24/7/2020 10:54

Possible run at £7 a share?. (If wider markets behave).


The strength of yesterday's statement may not be fully appreciated.

[philanderer] 24/7/2020 10:41

24th july Deutsche hold tp 630p
24th july Barclays overweight tp 800p up from 730p
24th july Jefferies buy tp 770p up from 725p

[spoole5] 24/7/2020 09:47

Outperforming today!

[essentialinvestor] 24/7/2020 09:19

May get some outperformance re the MCX following that update?.

[essentialinvestor] 23/7/2020 13:05

* marked recent underperformance re the sector - that should have read on Unilever.



Back on TATE, that statement looks very strong to me.

They have significant indirect exposure to the casual dine out market, particularly in the US.
Prices for co-products will surely have been impacted?.

Net debt down yet again.


What looks interesting longer term is the market for their food solutions business is growing apace -
'clean labels', reduced sugar, reduced calorie, added fibre, focus on taste etc.


Added a small amount and tbh if it was not for wider market volatility I would add a larger amount.

As we know the TATE share price can sell off for no good reason, so perhaps best looked at on a bad day

[wad collector] 23/7/2020 12:11

Spoole "the most challenging circumstances the company will likely ever face"
Let us hope you are right!
The share price is really only in the middle of the last 3 months trading range, but like others , happy to hold.

[essentialinvestor] 23/7/2020 11:01

Hi Phil, I hesitated on a 3rd ULVR buy @ 42.98 yesterday, but got two small
lots at 43.16 average, thanks. A bit of mean reversion kicking in on
Unilever following marked recent sector underperformance.

[philanderer] 23/7/2020 10:52

Happy to hold on the update.

EI, well done on your ULVR purchase :-)

[essentialinvestor] 23/7/2020 10:50

Very, very solid and credible performance.

[spoole5] 23/7/2020 08:12

Group rev only down 5% under the most challenging circumstances the company will likely ever face. Strong, resilient business.

[spoole5] 23/7/2020 08:02

Decent update under the circumstances

[essentialinvestor] 13/7/2020 12:21

Better day.

[essentialinvestor] 13/7/2020 09:02

There is a trading update due later half of July, they may warn of current trading -
worst case. Whether that is already allowed for in the SP?, may be.

[essentialinvestor] 10/7/2020 16:36

spoole, for TATE this is a very regular occurrence.
Look at a 5 year chart, the share price has moved £1 plus multiple times over the past
5 years.

TATE has significant exposure to the US food market and that includes casual dining etc.
It's not a coincidence the share price has come back as US COVID cases have surged imv.

[philanderer] 10/7/2020 10:48

JEFFERIES CUTS TATE & LYLE PRICE TARGET TO 725 (760) PENCE - 'BUY'