Tate & Lyle (LON:TATE) Announces Quarterly Earnings Results

Tate & Lyle (LON:TATE) announced its quarterly earnings results on Thursday. The company reported GBX 6.30 EPS for the quarter, Digital Look Earnings reports. The business had revenue of GBX 103.90 billion during the quarter. Tate & Lyle had a net margin of 4.84% and a return on equity of 6.17%.

Here are the key takeaways from Tate & Lyle’s conference call:

• Tate & Lyle returned to volume-led growth: first-half revenue rose 1% and volume mix increased 3%. Profit was in line with expectations, and the company maintained its full-year outlook.
• Commercial execution and customer wins supported growth, with solutions accounting for 58% of new business wins, up 15 percentage points. Management also highlighted strong demand for fiber ingredients and momentum in Asia Pacific and the Americas.
• Europe remains challenging, with muted consumer demand, increased competition and some price investment needed to support volumes. The prolonged Middle East conflict has also made input-cost inflation more pronounced; the company plans to seek to pass costs through in 2027 customer contract renewals, but gave no quantified estimate.
• Free cash flow was £100 million, with cash conversion at the company’s 75% long-term target. The interim dividend increased by 0.2 pence to 6.8 pence per share.
• The proposed sale to Ingredion is progressing through regulatory reviews, with approvals received in six jurisdictions and six still outstanding, including the U.S. and EU. Tate & Lyle continues to expect completion in the second half of calendar 2027.

Tate & Lyle Stock Down 0.3%

Tate & Lyle stock opened at GBX 560.50 on Friday. Tate & Lyle has a 1-year low of GBX 319.40 and a 1-year high of GBX 580. The firm has a market capitalization of £2.48 billion, a price-to-earnings ratio of 25.83, a price-to-earnings-growth ratio of 1.37 and a beta of 0.34. The firm’s fifty day moving average price is GBX 559.89 and its two-hundred day moving average price is GBX 479.30. The company has a current ratio of 2.71, a quick ratio of 1.77 and a debt-to-equity ratio of 80.98.

Tate & Lyle Company Profile

Tate & Lyle PLC, together with its subsidiaries, provides ingredients and solutions to the food, beverage, and other industries in the United States, the United Kingdom, other European countries, and internationally. It operates through three segments: Food & Beverage Solutions, Sucralose, and Primary Products. The company offers dairy products, soups, sauces, and dressings; bakery products and snacks; texturants; nutritive sweeteners, such as high fructose corn syrup and dextrose; fibres; and stabilizers and functional systems.