REG - Tate & Lyle PLC - Pre-close statement

Tate & LyleAnnouncement

Wed 07:00

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RNS Number : 5033B  Tate & Lyle PLC  01 October 2025

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

 

1 October 2025 - Tate & Lyle PLC: Pre-close statement

 

Tate & Lyle issues the following pre-close statement ahead of the
announcement of results for the six months ending 30 September 2025 on
Thursday, 6 November 2025.

 

Headlines

·   Strong customer engagement on benefits of CP Kelco combination driving
early cross-selling success

·   Planned CP Kelco revenue and cost synergies, and savings from
productivity programme, on track

·   Slowdown in market demand impacting near-term financial performance

·   Accelerating actions to drive delivery of top-line growth

 

Nick Hampton, Chief Executive said:

"We continue to make good progress delivering the benefits of the CP Kelco
combination.  Our expanded portfolio and capabilities, particularly in
mouthfeel, have created an enhanced and compelling customer offering.  We saw
early cross-selling successes in the first half and our cross-selling pipeline
has more than doubled in value over the last two months.  The strong interest
our combined offering and reformulation expertise is generating with customers
demonstrates the strategic logic of bringing Tate & Lyle and CP Kelco
together, and reinforces our confidence in the growth potential of the
combined business.

 

While the level of customer engagement is high, we have seen a slowdown in
market demand, particularly in the last two months, which in turn has slowed
our recent performance.  Against this challenging backdrop, we are
accelerating a series of steps to drive delivery of top-line growth.  These
include investing in enhanced customer segmentation, further strengthening our
customer-facing capabilities such as solution selling, applications and
marketing, working even more closely with customers to accelerate innovation
through technology, and optimizing capacity in our manufacturing network to
accelerate productivity.

 

In April, we started to operate as one combined business.  Since then, we
have made real progress setting up the business for future growth, while also
operating in a period of considerable economic volatility.  Looking ahead,
the fundamental growth drivers of our business remain strong.  Consumer
demand for healthier and more nutritious food and drink continues to grow.
 Our expertise in food and drink reformulation and our leading positions
across sweetening, mouthfeel and fortification, mean we are well-positioned to
capture this growth."

 

Half-year trading update

Overall, we saw a slowdown in market demand as the first half progressed.  In
the Americas, we expect revenue in the first half to be slightly lower
reflecting softer consumer demand.  In Europe, Middle East and Africa,
revenue is expected to be mid-single digit lower despite slightly higher
demand.  In Asia Pacific, revenue is expected to be broadly in line after
absorbing the impact of tariffs.

 

The margin of the CP Kelco portfolio is expected to improve further in the
first half.  Planned revenue and cost synergies, and the delivery of savings
from our productivity programme, remain on track.

 

Therefore, in constant currency and compared to pro forma comparatives, we now
expect Group revenue in the first half to be 3% to 4% lower.  Reflecting this
top-line softness, the investments we continue to make for growth, and the
planned weighting of cost synergies into the second half, EBITDA in the first
half is now expected to be high-single digit percent lower.

 

Full-year outlook

While we anticipate the near-term market demand environment will remain
challenging, we expect performance to improve as we move into the fourth
quarter.  This will be driven by the actions we are taking to drive top-line
growth and the increasing benefits from the CP Kelco combination including an
acceleration in cross-selling, the migration of distribution relationships to
a direct service customer model, and delivery of cost synergies.

 

Therefore, for the year ending 31 March 2026, in constant currency and
compared to pro forma comparatives, we now expect revenue and EBITDA to
decline by low-single digit percent compared to the prior year.

 

The person responsible for arranging the release of this announcement on
behalf of Tate & Lyle is Matthew Joy, Company Secretary.

 

Tate & Lyle PLC's LEI number is: 2138008K14474WPKZ244

 

END

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Conference Call

 

A conference call will be held today at 8.00am BST hosted by Nick Hampton,
Chief Executive and Sarah Kuijlaars, Chief Financial Officer.  Please note
that participants are required to pre-register for the call using this link
(https://eur03.safelinks.protection.outlook.com/?url=https%3A%2F%2Fevent.loopup.com%2FSelfRegistration%2Fregistration.aspx%3Fbooking%3DBPRoafVjj6D5kXVUVF5LmOIPU4uey48oVSq8RweylbI%3D%26b%3D2389e96d-457b-46a8-bebb-fec356d5b031&data=05%7C02%7CArchi.Quddus%40tateandlyle.com%7C6c1df5bb4bfb4fc36d3b08de002f12c7%7C39cc8f4f7ada4a2a9685c30a4321498c%7C0%7C0%7C638948399375920106%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=5zsG%2F1TuYd8cn43TfmlHhfN6h5rud3xP5iydKwCmE2c%3D&reserved=0)
. Following registration, participants will be sent an email containing dial
in numbers and their unique pin codes. Participants are requested to dial in
at least 10 minutes before the start of the call.

 

A replay of the call will be available until 15 October 2025. The replay dial
in numbers are available here
(https://eur03.safelinks.protection.outlook.com/?url=https%3A%2F%2Fmembers.meetingzone.com%2Freplaydialinnumbers.aspx%3Fb%3D2389e96d-457b-46a8-bebb-fec356d5b031%26encrypt%3DBXUY2sp32fsA22RBF6YHia3GvI7esM95lKENEkkbbPWUejYezW7kKNsjvYWjmL3Bjj3pOK07pv5Czu7Mj93kdbGilL7XEXPuiyqqBZfiMmU%253d&data=05%7C02%7CArchi.Quddus%40tateandlyle.com%7C2f8b2e2bd8cf4b65f3f208de002f0be8%7C39cc8f4f7ada4a2a9685c30a4321498c%7C0%7C0%7C638948399457848719%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=SkGOrAEo%2FfdySnuHMNhONlG1S5q00memWbSqPEZYJug%3D&reserved=0)
. After dialling in, listeners will need to use the following access pin:
9324803#.

 

For more information contact Tate & Lyle PLC:

 

Christopher Marsh, VP Investor Relations

Tel: Mobile: +44 (0) 7796 192 688

 

Nick Hasell, FTI Consulting (Media)

Tel: Mobile: +44 (0) 7825 523 383

Tel: Office: +44 (0) 203 727 1340

tate@fticonsulting.com (mailto:tate@fticonsulting.com)

 

 

About Tate & Lyle PLC:

Supported by our 165-year history of ingredient innovation, we partner with
customers to provide consumers with healthier and tastier choices when they
eat and drink. We are proud that millions of people around the world consume
products containing our ingredients and solutions every day.

 

Through our leading expertise in sweetening, mouthfeel and fortification, we
develop ingredients and solutions which reduce sugar, calories and fat, add
fibre and protein, and provide texture and stability to food and drink in
categories including beverages, dairy, bakery, snacks, soups, sauces, and
dressings.

 

Tate & Lyle recently acquired CP Kelco, a leading provider of pectin,
speciality gums and other nature-based ingredients to create a leader in
mouthfeel, significantly enhancing our solutions capabilities. Following this
combination, we now have more than 5,000 employees working in around 75
locations in 38 countries, serving customers in more than 120 countries.
Science, Solutions, Society is our brand promise and how we will achieve our
purpose of Transforming Lives through the Science of Food. By living our
purpose, we believe we can successfully grow our business and have a positive
impact on society. We live our purpose in three ways, by supporting healthy
living, building thriving communities and caring for our planet.

 

Tate & Lyle is listed on the London Stock Exchange under the symbol
TATE.L. American Depositary Receipts trade under TATYY. For the year ended 31
March 2025, and on a pro forma basis which assumes for illustrative purposes
that the combination with CP Kelco took place on 1 April 2024, revenue for the
enlarged Tate & Lyle Group would have been £2.12 billion. For more
information, please visit www.tateandlyle.com or follow Tate & Lyle on
LinkedIn, X (Twitter), Facebook or YouTube.

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