Tate & Lyle (TATE) H1 2026 TU earnings summary

Executive summary

• Strong progress in integrating CP Kelco, with the cross-selling pipeline value more than doubling in the last two months and strong customer engagement.

• Customers recognize the strength of the combined portfolio, especially in mouthfeel and reformulation expertise.

• Actions are being accelerated to drive top-line growth, including enhanced customer segmentation, strengthened customer-facing capabilities, and optimized manufacturing capacity.

• Despite integration benefits, recent months saw a slowdown in demand, particularly in North America, amid considerable economic volatility.

• Fundamental growth drivers remain strong, particularly in healthier and more nutritious food and drink.

Financial highlights

• Group revenue for H1 expected to be 3%-4% lower year-over-year in constant currency, compared to pro forma comparatives.

• EBITDA for H1 anticipated to be high single-digit percent lower, reflecting top-line softness and ongoing investments.

• For the full year ending March 2026, revenue and EBITDA are expected to decline by low single-digit percent year-over-year in constant currency.

• In the Americas, H1 revenue is expected to be slightly lower due to softer consumer demand.

• In EMEA, revenue is expected to be mid-single digit lower, while Asia Pacific revenue is expected to be broadly in line after absorbing tariffs.

Outlook and guidance

• Near-term market demand expected to remain challenging, with improvement anticipated in Q4 due to integration benefits and cost synergies.

• No assumption of near-term market recovery; Q4 improvement expected from internal actions and combination benefits.

• Full-year guidance assumes continued tariff impacts and conservative pricing assumptions.

• Improvement will be driven by accelerated top-line growth actions and increasing benefits from the CP Kelco combination.