What Tate & Lyle (TATE) Said on Its H1 Earnings Call

Key Points

• Revenue returned to volume-led growth, but profitability declined: First-half revenue rose 1% and underlying volume mix increased 4%, while adjusted EBITDA fell 8% to £197 million and adjusted profit before tax declined 18%, pressured by pricing and higher costs.
• Regional results were mixed: Asia Pacific revenue rose 7% and the Americas gained 1%, but EMEA revenue fell 4% and EBITDA dropped 28% amid weaker bulk sweeteners and co-products, pricing pressure and inflation. Fiber products were a growth bright spot, with polydextrose revenue up 29% in the Americas.
• Full-year outlook and Ingredion deal remain on track: Tate & Lyle expects modest revenue growth and broadly flat EBITDA before a $20 million rescheduling impact, and says the sale to Ingredion is progressing toward a close in the second half of 2027.

Tate & Lyle LON: TATE reported a return to volume-led revenue growth in the six months ended September 30, 2026, while profit fell as pricing actions and higher costs outweighed the benefits of increased sales volumes and productivity savings.

The food ingredients company maintained its outlook for the financial year ending March 31, 2027, and said its planned sale to Ingredion remains on track to close in the second half of calendar 2027.

Revenue rose 1% in the first half, while adjusted earnings before interest, taxes, depreciation and amortization fell 8% to £197 million. Adjusted profit before tax declined 18%, and earnings per share were 17.5 pence, Chief Financial Officer Sarah Kuijlaars said.

Kuijlaars said percentage growth figures were presented at constant currency, and references to volume reflected changes in revenue from both the volume and mix of ingredients sold. Underlying revenue rose 2% with a 4% increase in volume mix, excluding weaker European bulk sweeteners and co-products and U.S. tariff reimbursements. Higher-value specialty products accounted for approximately two-thirds of revenue.

Regional performance and costs

In the Americas, revenue rose 1%, or 2% excluding U.S. tariff reimbursements. EBITDA was in line with the prior period, as volume growth and operating leverage offset lower pricing. Kuijlaars described North America as robust, though she said ongoing consumer softness moderated contracting gains.

Europe, Middle East and Africa revenue fell 4%, and EBITDA declined 28%. The region faced lower volumes and prices for bulk sweeteners and co-products, broader European pricing pressure and inflation, particularly in energy. Growth in Turkey, the Middle East and Africa was more than offset by the wider regional pressures.

Asia Pacific revenue increased 7%, driven by 9% growth in volume mix, although EBITDA fell 13% against a strong comparative period. Kuijlaars cited pricing actions, inflation and investments to support growth. China was modestly lower after customers bought ahead of tariff implementation in the prior period, but she said underlying performance improved in higher-value categories and food service.

The company generated $27 million in productivity savings during the half and said it remains on track for its target of $200 million over the five years ending March 31, 2028. Adjusted free cash flow increased by £2 million to £100 million, with cash conversion of 75%.

Fiber demand and commercial investment

Tate & Lyle said investments in customer-facing teams and tools are beginning to produce results. The company introduced a common customer relationship management platform in August and continued to roll out a generative artificial intelligence tool for sales and technical teams.

Fiber was a growth area during the period. Revenue from polydextrose fiber rose 29% in the Americas, while PROMITOR soluble fiber revenue increased 52% in the Americas and 15% in Asia Pacific, the company said.

Revenue from solutions represented 58% of new business wins, an increase of 15 percentage points. Revenue from new products rose 4%, and the value of the new business pipeline increased 17%, both on a like-for-like basis.

Outlook and Ingredion offer

For the full financial year, Tate & Lyle continues to expect modest revenue growth, supported by volume growth weighted toward the second half. It also expects broadly flat EBITDA before the $20 million impact of rescheduling the consolidation of bio-gums capacity.

The company said the extension of the conflict in the Middle East had made cost pressures more pronounced than originally anticipated. It plans to pass through inflation as it renews customer framework agreements for calendar 2027, while also seeking savings through procurement and operational measures.

Under Ingredion’s recommended cash offer, announced in June, Tate & Lyle shareholders will receive value of up to 615 pence per share, including a 13.2-pence final dividend paid in June and a 6.8-pence interim dividend to be paid in January. Shareholders approved the transaction in July with more than 98% of votes in favor, and regulatory and antitrust filings are proceeding as anticipated, the company said.

About Tate & Lyle (LON:TATE)

Tate & Lyle PLC, together with its subsidiaries, provides ingredients and solutions to the food, beverage, and other industries in the United States, the United Kingdom, other European countries, and internationally. It operates through three segments: Food & Beverage Solutions, Sucralose, and Primary Products. The company offers dairy products, soups, sauces, and dressings; bakery products and snacks; texturants; nutritive sweeteners, such as high fructose corn syrup and dextrose; fibres; and stabilizers and functional systems.

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