Tate & Lyle (TATE) H2 2026 earnings summary

Executive summary

• Integration of CP Kelco completed, enabling a broader solutions offering and accelerating customer engagement, with a focus on volume-led growth and leveraging combined capabilities.

• Full-year results aligned with revised guidance, impacted by muted market demand, regional challenges, and a complex geopolitical environment.

• Strategic priorities and actions advanced to drive top-line growth, productivity, and strengthen performance.

• Early signs of top-line momentum observed as the new financial year begins.

• Ingredion made a conditional proposal to acquire the company, offering up to 615 pence per share, with no certainty of completion.

Financial highlights

• Statutory revenue increased 16% year-over-year to £2,006 million; adjusted EBITDA up 13% to £415 million, driven by CP Kelco acquisition.

• Like-for-like/pro forma revenue and adjusted EBITDA both declined 3% year-over-year due to challenging market conditions.

• Adjusted profit before tax down 5% to GBP 238 million; statutory profit before tax from continuing operations rose 48% to £131 million.

• Adjusted EPS at GBP 0.404; free cash flow at GBP 164 million, down 16% year-over-year, with cash conversion at 70%.

• Dividend held flat at GBP 0.198 per share, maintaining yield.

Outlook and guidance

• Modest revenue growth expected for FY 2027, with volume growth weighted to H2 and broadly flat EBITDA before a $20 million bio-gums consolidation impact.

• Adjusted effective tax rate projected at 23%-25% for FY 2027.

• Capital expenditure expected in the GBP 110-130 million range.

• Limited impact assumed from Middle East conflict; cost inflation to be mitigated by procurement, operational discipline, and pricing.