Tate & Lyle flags growth 'slightly below' outlook amid tariffs

Tate & Lyle PLC on Thursday reported a fall in its annual profit despite an increase in revenue.

The company cautioned that it expects revenue growth for the new financial year to be below its medium-term target range, however, amid tariff uncertainty.

Tate & Lyle shares were down 3.1% to 584.50 pence in London on Thursday morning.

In the year ended March 31, the London-based supplier of food and beverage products had a pretax profit of £88 million, down 56% from £201 million in financial 2024.

Exceptional charges on continuing operations amounted to £96 million, up from £24 million a year prior. M&A costs, meanwhile, rose to £86 million from £27 million, also hurting its bottom line.

Exceptionals included £59 million related to its decision to exit the firm’s tapioca starch facility in Thailand as well as £24 million of integration costs and £13 million related to restructuring costs.

Revenue rose 5.4% to £1.74 billion in financial 2025, from £1.65 billion.

Tate & Lyle announced in June of last year that it would acquire pectin and gum business CP Kelco for $1.8 billion. CP Kelco contributed annual revenue of £224 million since the acquisition was sealed in November.

Tate & Lyle declared a final dividend of 13.4 pence, up 3.9% from 12.9 pence a year earlier. Its total dividend rose 3.7% to 19.8 pence from 19.1 pence.

Looking ahead, Tate & Lyle said it expects revenue growth towards the higher end of its 4% to 6% every year in the medium-term.

However, for the current year, it said it expects revenue growth ‘slightly below’ the bottom end of the medium-term range on a constant currency basis, when using a pro forma comparative. That comparative assumes CP Kelco was part of the business since the start of the financial year just ended. On a pro forma basis, revenue in financial 2025 totalled £2.12 billion.

‘Our predominantly regional production model means we are well-placed to supply customers. However, tariffs and the associated uncertainty have increased costs for both us and our customers, mainly for products we supply between the US and China,’ Tate & Lyle said.

Chief Executive Officer Nick Hampton added: ‘As we start the new year, our focus is on delivering the benefits of the combination and accelerating top-line growth. Integration is progressing well and delivery of the synergies we previously announced is on-track. With significant opportunities ahead, we are confident in the growth potential of our business.’

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