Tate & Lyle admits "disappointing" performance amid takeover talks

(Alliance News) - Tate & Lyle PLC on Thursday said its financial performance has been ...

Alliance News 21 May, 2026 | 9:16AM
Email Form Facebook Twitter LinkedIn RSS

(Alliance News) - Tate & Lyle PLC on Thursday said its financial performance has been "disappointing" and said it is "acting with urgency" to return to top-line growth.

The London-based supplier of food and beverage products said reported revenue increased 16% to GBP2.01 billion in the 12 months to the end of March from GBP1.74 billion a year earlier.

However, adjusted revenue fell 3%. The firm's adjusted performance is presented as if CP Kelco was acquired at the start of financial 2025.

The firm completed the acquisition of nature-based ingredients firm CP Kelco for USD1.8 billion in November 2024.

On Thursday, Tate & Lyle said reported pretax profit jumped 49% to GBP131 million from GBP88 million.

Adjusted pretax profit fell 5% to GBP238 million, while adjusted earnings before interest, tax, depreciation and amortisation fell 3% to GBP415 million.

Adjusted earnings per share fell 16% to 40.4 pence.

Tate & Lyle said the "challenging market environment" impacted financial performance, amid muted market demand.

The company cut its final dividend by 1.5% to 13.2p per share from 13.4p. This took the full year dividend to 19.8p per share, unchanged from the previous year.

Chief Executive Nick Hampton said: "The year has been one of significant progress and challenge. Progress as shown by the successful completion of the integration of the CP Kelco business with the power of the combination driving increased levels of customer traction and a stronger new business pipeline.

"Challenge as we simultaneously faced softer market demand than anticipated, an increasingly complex geopolitical landscape and the integration of two large global businesses."

Hampton said the overall financial performance has been "disappointing".

"We are acting with urgency to return the business to top-line growth, and the targeted actions we set out in November are progressing well," the chief executive added.

For the year to the end of March 2027, on a constant currency basis Tate & Lyle expects "modest" revenue growth, underpinned by volume growth and weighted to the second half.

It forecasts "broadly flat" Ebitda before the USD20 million impact of the rescheduling of the consolidation of bio-gums capacity.

"Our outlook currently assumes a limited impact from the conflict in the Middle East, and we are taking actions to mitigate cost inflation through a range of initiatives including procurement activities, operational discipline and pricing action," it said.

Earlier this month, Ingredion Inc confirmed it made a non-binding indicative offer for Tate & Lyle.

The firm received a conditional offer valuing it at a maximum of 615 pence per share, or GBP2.74 billion in total, based on Tate & Lyle's 445.4 million shares in issue.

Ingredion, a Westchester, Illinois-based food and beverage ingredient supplier focused on starches and sweeteners, has until June 11 to declare a firm intention to make an offer.

Shares in Tate & Lyle were up 0.7% at 525.83 pence on Thursday morning in London.

By Michael Hennessey, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2026 Alliance News Ltd. All Rights Reserved.

Email Form Facebook Twitter LinkedIn RSS

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Tate & Lyle PLC 525.50 GBX 0.67

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

© Copyright 2025 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures