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

Tate & Lyle (LON:TATEGet Free Report) posted its earnings results on Thursday. The company reported GBX 22 earnings per share for the quarter, Digital Look Earnings reports. Tate & Lyle had a net margin of 1.71% and a return on equity of 2.17%. The business had revenue of GBX 200.60 billion for the quarter.

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

  • Tate & Lyle said the CP Kelco integration is complete and has been delivered without disruption to customers, with management now focused on volume-led top-line growth.
  • Full-year results were in line with revised guidance, but still reflected a tough demand backdrop: adjusted EBITDA fell 3% to GBP 415 million and revenue declined 3% on a pro forma basis.
  • Management highlighted weaker performance in Europe and Latin America, especially from bulk sweeteners and lower sweetener volumes, while tariffs and softer market demand continued to weigh on growth.
  • The company reported strong progress on its strategic actions, including GBP 24 million of CP Kelco cost synergies, GBP 53 million of productivity savings, and a new revenue-synergy pipeline that has more than doubled to over $100 million.
  • Management sees early signs that the combined business is creating customer wins, citing traction in mouthfeel, clean label, and fiber fortification; for FY2027 it expects modest revenue growth and broadly flat EBITDA before the bio-gums timing impact.

Tate & Lyle Stock Down 0.5%

TATE opened at GBX 519.50 on Thursday. The firm’s 50-day simple moving average is GBX 370.44 and its 200-day simple moving average is GBX 375.23. The company has a debt-to-equity ratio of 83.31, a quick ratio of 1.77 and a current ratio of 2.19. Tate & Lyle has a twelve month low of GBX 319.40 and a twelve month high of GBX 610. The firm has a market cap of £2.29 billion, a price-to-earnings ratio of 92.77, a PEG ratio of 1.37 and a beta of 0.28.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on TATE shares. UBS Group reaffirmed a “neutral” rating and set a GBX 375 price objective on shares of Tate & Lyle in a report on Monday. Deutsche Bank Aktiengesellschaft raised Tate & Lyle to a “buy” rating and increased their target price for the stock from GBX 460 to GBX 595 in a report on Friday, May 15th. Two investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of GBX 490.

View Our Latest Report on TATE

Tate & Lyle Company Profile

(Get Free Report)

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.

Further Reading

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