Tate & Lyle (TATE) H1 2025 (Q&A) earnings summary

Executive summary

• Completed transformation into a specialty food and beverage solutions business through the sale of Primient and the combination with CP Kelco, accelerating a growth-focused strategy.

• Delivered strong H1 financial performance: adjusted EBITDA up 6%, adjusted EPS up 13%, and free cash flow up £48m to £127m with 94% cash conversion.

• Customer-centric innovation and new partnerships drove increased new product revenue and solutions-based business wins.

• Continued investment in technology, sustainability, and partnerships, including the launch of the ALFIE automated lab in Singapore and new renewable electricity agreements.

• Achieved five-year target to remove nine million tons of sugar from diets six months ahead of schedule.

Financial highlights

• Revenue down 7% year-over-year to £775m, mainly due to input cost deflation pass-through in Food & Beverage Solutions.

• Adjusted EBITDA up 6% to £188m; adjusted EBITDA margin up 290bps to 24.3%.

• Adjusted profit before tax up 11% to £156m; adjusted EPS up 13% to 30.6p.

• Free cash flow up £48m to £127m; net cash position of £39m at period end, up £192m.

• Return on capital employed improved by 150bps to 18.5%.

Outlook and guidance

• Full-year outlook unchanged: expect constant currency revenue slightly lower year-over-year, EBITDA growth of 4–7% for FY25.

• Volume growth expected to accelerate in H2; input cost deflation impact to reduce.

• Capital expenditure for FY25 expected in the £100m–£120m range.