Tate & Lyle (LSE:LON:TATE) said it expects modest revenue growth for the year ending 31 March 2027, weighted to the second half, and broadly flat EBITDA before a c.US$20 million impact from the rescheduling of bio-gums consolidation.
For the year ended 31 March, on a pro forma comparable basis versus the year ended 31 March 2025, group revenue was £2,006 million, down 3% in constant currency, adjusted EBITDA was £415 million (down 3%), adjusted profit before tax was £238 million (down 5%), adjusted EPS was 40.4p (down 16%), free cash flow was £164 million and net debt was £939 million with net debt to EBITDA at 2.3x, while the Board proposed a final dividend of 13.2p to keep full-year pay-out at 19.8p.
"We are acting with urgency to return the business to top-line growth," Chief Executive Nick Hampton said.
Regionally Americas revenue was £995 million (down 3%) with adjusted EBITDA £258 million (down 4%), EMEA revenue was £636 million (down 5%) with adjusted EBITDA £101 million (down 6%), and Asia Pacific revenue was £375 million (down 1%) with adjusted EBITDA up 9% to £56 million.
The integration of CP Kelco is complete and Tate & Lyle delivered US$24 million of cost synergies in-year, hit an annualised US$50 million run-rate ahead of plan, saw the value of its cross-selling pipeline more than double in H2 and reported New Products revenue up 9% on a like-for-like basis.
Exceptional charges of £45 million, mainly £35 million of integration costs and £15 million of US and UK pension buy-outs, weighed on statutory results while adjusted EBITDA margin eased to 20.7% and cash conversion was 70% as working capital increased, prompting management to reiterate focus on productivity, working capital efficiency and deleveraging.
Ingredion made a conditional proposal on 14 May valuing Tate & Lyle at up to 615p per share (adjusted to reflect the 13.2p final dividend announced), and under the Code Ingredion must either announce a firm intention to make an offer or confirm it will not do so by 5.00pm on 11 June unless extended.
