Tate & Lyle (TATE) H1 2026 earnings summary

Executive summary

• Integration of CP Kelco completed, driving high customer engagement, innovation, and a robust new business pipeline valued at $420 million since April 2025.

• Decisive actions are underway to accelerate growth, improve performance, and position for future demand recovery.

• Group revenue and EBITDA declined year-over-year due to softer market demand, especially in North America.

• Four strategic priorities: targeted investment in growth, delivering CP Kelco synergies, accelerating productivity, and strengthening the balance sheet.

• Interim dividend increased to 6.6p per share, with a focus on deleveraging and potential share buyback when leverage falls below 2.0x.

Financial highlights

• Statutory revenue up 32% to £1,024m, but pro forma/adjusted revenue fell 3% year-over-year; adjusted EBITDA down 6% to £215m.

• Adjusted profit before tax down 10% to £126m; statutory profit after tax at £57m, down 19% year-over-year.

• Adjusted EPS was 21.3p; statutory diluted EPS 12.5p, down 28%.

• Free cash flow was £98m with 71% cash conversion.

• Return on capital employed was 8.2% on a rolling 12-month basis.

Outlook and guidance

• Revenue and EBITDA expected to decline by low single digits in constant currency for the year ending March 2026, unchanged from prior guidance.

• Continued investment in growth and productivity, with CP Kelco cost synergies expected to exceed $50m by FY27 and up to $70m revenue synergies by FY29.

• Capital expenditure expected at the lower end of £120m–£140m for FY2026.

• Adjusted effective tax rate expected between 24% and 25% for FY26.