Tate & Lyle (TATE) H2 2025 earnings summary

Executive summary

• Completed transformation into a growth-focused specialty food and beverage solutions business, highlighted by the CP Kelco acquisition and divestment of commodity operations like Primient.

• Achieved robust financial performance and significant strategic progress, with strong integration of CP Kelco.

• Focus remains on accelerating top-line growth, leveraging expanded portfolio, innovation, and combined capabilities in sweetening, mouthfeel, and fortification.

Financial highlights

• Revenue for the year ended March 31, 2025, was 5% lower, but adjusted EBITDA grew 18% to £381m; pro forma combined revenue was 3% lower, with EBITDA up 5% and margin at 21%.

• Free cash flow reached £190m, up £20m, with cash conversion at 82%.

• Profit before tax increased 9% to £270m; adjusted EPS rose 4% to 50.3p.

• Final dividend of 13.4p per share, full-year dividend up 3.7% to 19.8p.

• Statutory profit before tax for continuing operations was £88m, down £113m from last year.

Outlook and guidance

• For FY26, revenue growth expected at or slightly below the lower end of the 4%-6% medium-term range, with EBITDA growth ahead of revenue.

• Guidance reflects cautious consumer environment and uncertainty around U.S.-China tariffs, but impact is manageable.

• CapEx for FY26 expected between £120m–£140m.

• Targeting cost synergies of $50m by FY27, with more than $25m expected in FY26.

• Confident in delivering medium-term financial targets: revenue growth, EBITDA margin improvement, and strong cash generation.