LONDON — Executives of Tate & Lyle expect volumes to rebound in the current fiscal year after falling in the fiscal year ended March 31.

Tate & Lyle had EBITDA of £328 million ($418 million), up 1.8% from £322 million in the previous fiscal year. The increase was 7% in constant currency. Proactive mix management, productivity savings and cost discipline drove the increase, according to the company. Revenue, however, declined 6% to £1.65 billion ($2.10 billion) from £1.75 billion due to lower volume from soft consumer demand, customer destocking and Tate & Lyle prioritizing margin. The decline was 2% in constant currency.

In the current fiscal year, Tate & Lyle expects revenue “slightly lower” in constant currency than the previous year and EBITDA growth between 4% and 7%.

“Turning to the outlook, in the last quarter of our 2024 financial year, we saw average daily volumes accelerate, and we expect this improvement to continue into the 2025 financial year,” said Anthony Hampton, chief executive officer, in a May 23 earnings call. “This is based on three main factors. Firstly, our approach to last year was to focus on revenue and margin ahead of volume, and the contracts we have put in place for the 2024 calendar year position us well to grow from this new base.

“Secondly, customer destocking has come to an end, and thirdly, consumer confidence is beginning to improve albeit remaining somewhat fragile. In light of this, we expect good volume growth in the 2025 financial year, accelerating as the year progresses.”

In Tate & Lyle’s Food & Beverage Solutions business, revenue of £1.36 billion was down 5% from £1.44 billion in the previous fiscal year. The decrease was 2% in constant currency. Volume declined 6% while price/mix was up 4%. Within Food & Beverage Solutions, revenue in North America declined 3% in constant currency to £642 million as volume dropped 8% and price/mix increased 5%. Cost-of-living pressure on North American consumers resulted in softer demand, but in the fourth quarter customer destocking and food inflation had less of a negative impact.

In the Sucralose business, revenue dropped 5% to £174 million from £184 million. The decrease in constant currency was 1%. The underlying performance of the Sucralose business remained steady with adjusted EBITDA 4% lower, according to Tate & Lyle.

“Industry demand for sucralose remains robust, driven by growing consumer demand for reduced sugar and calories in food and drink,” said Dawn Allen Tate, chief financial officer.” We continue to see good demand from our larger customers.”

In the Primary Products Europe business, revenue declined 12% in constant currency to £114 million from £129 million in the previous fiscal year.

“We continue to successfully optimize its financial performance as we transition capacity to higher-margin Food & Beverage Solutions ingredients,” Tate said of Primary Products Europe.

Tate & Lyle has agreed to sell its remaining 49.7% interest in Primary Products Investments LLC (Primient) for ₤279 million in cash to KPS Capital Partners, LP.

“Over the last six years, we’ve been on a journey to transform Tate & Lyle into a fully focused Specialty Food & Beverage Solutions business,” Hampton said. “With the sale of Primient, this transformation is complete.”