Tate & Lyle (TATE) H1 2025 earnings summary

Executive summary

• Achieved strong financial performance with 6% adjusted EBITDA growth to £188m, robust cash generation, and significant productivity improvements.

• Completed sale of Primient, generating $350m in proceeds and £85m post-tax gain, and announced transformational combination with CP Kelco, accelerating the specialty strategy.

• Customer-centric innovation drove a 10% increase in new product revenue and 22% of solutions value from new business wins.

• Met five-year target to remove 9 million tons of sugar from diets six months ahead of schedule.

• Continued investment in partnerships, technology, and sustainability initiatives, including new renewable electricity agreements and automated labs.

Financial highlights

• Revenue declined 7% year-over-year to £775m, mainly due to input cost deflation; group volume up 6%.

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

• Adjusted profit before tax up 11% to £156m; adjusted EPS up 13% to 30.6p; return on capital employed improved by 150bps to 18.5%.

• Free cash flow increased by £48m to £127m; cash conversion at 94%.

• Statutory profit after tax for continuing operations was £70m, down 26% due to higher M&A costs.

Outlook and guidance

• Revenue for FY25 expected to be slightly lower year-over-year; EBITDA growth forecasted at 4–7% in constant currency.

• Expect accelerated volume growth in H2, reduced impact from input cost deflation, and continued productivity benefits.

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

• CP Kelco combination expected to deliver $50m in targeted run-rate cost synergies and margin improvements.

• Outlook for standalone business unchanged; CP Kelco performed ahead of prior period.