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Tate & Lyle PLC on Thursday said cost savings at CP Kelco are tracking ahead of plan as it reported a drop in half-year profit and adjusted sales. The London-based supplier of food and beverage products said pretax profit fell 29% to £74 million in the six months ending September from £104 million the year prior, or by 15% to £126 million from £156 million on an adjusted basis. Revenue from continuing operations picked up 32% to £1.02 billion from £775 million, but fell 3% adjusting for the impact of the CP Kelco acquisition. By geography, adjusted sales fell 6% in Europe, Middle East & Africa, dropped 2% in the Americas and were flat in Asia Pacific. Basic earnings per share for continuing operations declined to 12.6 pence from 17.7p, or to 12.5p from 17.4p on a diluted basis. The interim dividend was raised to 6.6p from 6.4p a year ago. Tate & Lyle said it was accelerating actions to drive top-line growth and stronger performance. These include targeted investment to accelerate customer wins in key growth areas, and actions to accelerate productivity, deliver the the benefits of the CP Kelco combination and strengthen the balance sheet. The firm said run-rate cost synergies at CP Kelco are ahead of plan and now expected to exceed the $50 million target by the end of financial 2027. Revenue synergies are on track, it added, with a target of $70 million by the end of financial 2029. Shares in Tate & Lyle were up 5.6% at 399.00p each in London on Thursday. They have fallen 48% in the last 12 months. Chief Executive Nick Hampton said Tate & Lyle has made ‘strong progress’ driving the benefits of the CP Kelco combination. But despite this encouraging progress, Hampton said group performance in the first six months of the year has been ‘disappointing, impacted by softer than expected market demand, notably in North America.’ The firm left its outlook for the full 2026 financial year unchanged from the pre-close statement in October when it lowered guidance. For the financial year ending March 2026, in constant currency and compared to pro forma comparatives, Tate & Lyle continues to expect revenue and earnings before interest, tax, depreciation and amortisation to decline by low-single digit percent compared to the prior year. 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. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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