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Tate & Lyle PLC on Wednesday said it was accelerating plans to boost top-line growth after warning soft market conditions would result in full-year sales and earnings below expectations. The London-based supplier of food and beverage products expects revenue and earnings before interest, tax, depreciation and amortisation for the financial year to March 2026 to decline by low-single digit percent compared to the prior year at constant currency. In May, the company forecast revenue growth at, or slightly below, the bottom of its medium-term range of 4% to 6%, with Ebitda growth ahead of revenue. In the financial year to March 2025, Tate & Lyle reported pro forma revenue of £2.12 billion and Ebitda of £446 million, including the impact of the CP Kelco, the pectin and gums business business it bought in June 2024 for $1.8 billion. Shares in Tate & Lyle fell 9.7% to 406.00 pence each in London on Wednesday morning, the worst performing stock on the FTSE 250. For the financial first half, Tate & Lyle now expects revenue to be 3% to 4% lower with Ebitda now expected to be high-single digit percent lower. Chief Executive Nick Hampton said the group has seen a ‘slowdown in market demand, particularly in the last two months, which in turn has slowed our recent performance.’ ‘In the Americas, we expect revenue in the first half to be slightly lower reflecting softer consumer demand. In Europe, Middle East and Africa, revenue is expected to be mid-single digit lower despite slightly higher demand. In Asia Pacific, revenue is expected to be broadly in line after absorbing the impact of tariffs,’ he said. Against this ‘challenging backdrop’, Hampton said Tate & Lyle is accelerating a series of steps to drive delivery of top-line growth. These include investing in enhanced customer segmentation, further strengthening customer-facing capabilities, working even more closely with customers to accelerate innovation and optimising capacity in its manufacturing network to accelerate productivity. Hampton expects performance to improve moving into the fourth quarter, driven by these actions, the increasing benefits from the CP Kelco combination and the delivery of cost synergies. Planned CP Kelco revenue and cost synergies, and savings from productivity programme, are on track, he added. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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