Tate & Lyle (LSE:TATE) reported third-quarter trading in line with expectations, supported by contributions from its recently combined CP Kelco business, although underlying demand across key markets remained subdued.
Group revenue increased 15% on a reported basis for the three months to 31 December 2025, primarily reflecting the impact of the CP Kelco acquisition. On a pro forma basis, however, revenue declined 2%, with weaker performance in the Americas and EMEA regions partially offset by modest growth in Asia Pacific.
Despite softer underlying demand conditions, the company reaffirmed its full-year outlook, continuing to expect low single-digit declines in both revenue and EBITDA.
Management said progress is being made on initiatives designed to restore sustainable top-line growth, including targeted investments in technology, capabilities and commercial execution. The expanded product portfolio created through the CP Kelco integration is also generating increased cross-selling opportunities, which the company expects to support future revenue momentum.
Synergies from the CP Kelco transaction are tracking in line with expectations across both cost efficiencies and revenue opportunities. Tate & Lyle is also selectively investing in customer framework agreements for 2026, aimed at driving volumes and strengthening longer-term commercial relationships.
The company believes these measures position the business to benefit from structural growth trends in healthier food and beverage consumption, including rising demand for ingredients that reduce sugar, calories and fat while enhancing nutrition and product functionality.
Tate & Lyle’s outlook reflects broadly stable operational performance and supportive corporate developments, including insider share purchases. However, valuation metrics remain elevated and technical indicators point to neutral market momentum, highlighting ongoing caution amid challenging trading conditions.
More about Tate & Lyle
Tate & Lyle is a London-listed global ingredients specialist focused on sweetening, mouthfeel and fortification solutions for food and beverage manufacturers. Building on more than 165 years of ingredient innovation and an expanded portfolio following the CP Kelco acquisition, the company supplies nature-based ingredients that help reduce sugar, calories and fat, add fibre and protein, and improve texture and stability across categories including beverages, dairy, bakery and snacks worldwide.
Leave a Reply