2024 was an exciting year for us. We grew our two divisions, Taste and Ingredient Solutions, above the market rate and maintained our focus on achieving our synergy targets. We unveiled our new strategy during Capital Markets Day, when we announced the sale of our yeast extracts business and accelerated the next step in our integration and transformation process.
With our global presence in all major regions and our synergistic, on-trend, broad portfolio predicated on taste, texture, and health, we support our customers in all food and beverage markets: beverages, dairy, baked goods and confectionery, savory, petfood, and plant-based. In these markets and regions, we work with a variety of customers, such as global key accounts, distributors, regional players, private labels, food services, and start-ups.
Key market trends
The global food and beverage market is growing at a compound annual growth rate (CAGR) of 2.4%. This diverse market is built on local tastes and traditions, with global, regional, and local players. In 2024, it was shaped by these trends:
- Health as a key consumer need – with a focus on reduced sugar, salt, and fat, and on increased protein content, nutritional value, and health benefits (although taste remains the key driver in purchasing decisions)
- Alongside new products, food industry players are focusing on reformulating and optimizing recipes to respond to fluctuations in the market for raw materials
- Two-thirds of projected volume growth over the next five years will be attributable to Asia-Pacific, the Middle East and Africa
- Regulations focus on food safety, health, and sustainability – the latter supported by growing consumer concerns about climate
With our two divisions and the synergy between them, and the fundamental understanding of our products and their application, we combine a unique ability to co-create Taste solutions with the optimal Food and Beverage matrix.
Performance
TTH delivered a very strong performance with 9% volume growth, with both Taste and Ingredients Solutions contributing equally. The strong demand was driven predominantly by regional and local accounts, which was also partly bolstered by a catch-up effect after destocking last year. Sales synergies saw a good momentum, through cross-selling, concept-selling and capability-sharing, resulting in a steadily growing pipeline in line with our mid-term ambitions.
Throughout the year, the business created new concepts which were successfully launched across multiple platforms, driven by strong interest from customers.
The yeast extracts business was sold to Lesaffre in October 2024. TTH will continue to supply yeast extracts to Lesaffre under a co-manufacturing agreement until the end of 2025.
Adjusted EBITDA was up 11%, driven by strong volume growth and the contribution from the synergies, resulting in an Adjusted EBITDA margin of 19%.
x € million |
|
2024 |
|
Pro forma 20231 |
||||
|---|---|---|---|---|---|---|---|---|
Sales |
|
3,245 |
|
3,038 |
||||
Organic sales growth (in %) |
|
8 |
|
|
||||
Adjusted EBITDA |
|
615 |
|
556 |
||||
Adjusted EBITDA margin (in %) |
|
19.0 |
|
18.3 |
||||
|
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