Source: Sharecast
The 170-year old British firm, which is being taken over by US peer Ingredion in a £2.7bn deal, returned to topline growth in the six months to 30 September, with revenues rising 1% to £1.04bn. However, adjusted earnings before interest, tax, depreciation and amortisation fell 8% to £197m while pre-tax profits were 18% lower at £102m.
Tate & Lyle flagged robust performances in Asia Pacific and the Americas, which helped offset more challenging conditions in Europe, the Middle East and Africa.
The performance was in line with management expectations, and the company maintained its full-year outlook for "modest" revenue growth, underpinned by volume growth and weighted to the second half, and broadly flat EBITDA.
However, it noted: "The extension of the conflict in the Middle East means that the impact has become more pronounced than originally anticipated, and we intend to pass through cost inflation as we renew customer framework agreements for the 2027 calendar year, while also offsetting cost inflation through a range of initiatives including procurement activities and operational discipline."
Chief executive Nick Hampton said: "The actions we’ve taken over the last year to strengthen our customer-facing capabilities, insights and tools to accelerate customer wins, drive commercial excellence across the business and to support volume-led topline growth are making a tangible impact.
"Looking ahead, as we continue to operate in a challenging inflationary environment, we remain focused on what we can control: on continued strategic execution, driving topline growth, maintain cost discipline and delivering for our customers."
The sale of Tate & Lyle to Ingredion - which will see one of the longest serving members of the London Stock Exchange quit the market - is set to complete in the second half of 2027.
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