Tate & Lyle reports subdued third quarter as market remains 'muted'

Tate & Lyle PLC on Thursday backed its annual outlook but said it has grappled with lower volumes in the Americas, and weaker pricing in Europe, Middle East & Africa.

The London-based provider of ingredients to food and beverage producers said revenue in the nine months to December 31 surged 29% to £1.51 billion. On a pro forma basis at constant currency, however, revenue fell 3%.

‘On a pro forma basis revenue in the Americas was 2% lower than the prior period, with modestly higher pricing more than offset by lower volume. In Europe, Middle East & Africa lower pricing resulted in 5% lower revenue, while in Asia Pacific revenue was up 1%, driven by higher volume,’ the firm said.

The pro forma calculation assumes the CP Kelco deal, concluded in November 2024, was included for the entire comparative period. It acquired CP Kelco from JM Huber Corp for $1.8 billion.

‘Tate & Lyle’s third quarter operating performance was in line with our expectations and consistent with the first half,’ Chief Executive Nick Hampton said.  

‘In November, at our interim results, we outlined a series of actions to drive top-line growth and improve performance. We made good progress on these actions during the quarter. We continued to make targeted investments in capabilities and technology to strengthen our customer offering, and saw further encouraging momentum in customer engagement in our combined portfolio. The value of cross-selling opportunities in the new business pipeline increased significantly in the third quarter.’

In the third quarter alone, revenue was 15% higher on-year on a reported and constant currency basis.

‘On a pro forma basis and in constant currency, revenue was 2% lower reflecting continued muted market demand. Performance in all regions was broadly in line with the first half,’ Tate & Lyle said.

Tate & Lyle expects revenue and earnings before interest, tax, depreciation and amortisation ‘decline by low-single digit percent compared to the prior year’.

In financial 2025, pro forma revenue was £2.12 billion, and its Ebitda £446 million.

Tate & Lyle shares were down 4.1% to 382.80 pence each on Thursday morning in London.

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