Tate & Lyle (LON:TATE) Releases Earnings Results

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

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 0.5%

LON:TATE traded down GBX 3 during trading hours on Thursday, reaching GBX 562. 773,027 shares of the stock were exchanged, compared to its average volume of 15,210,374. The stock has a market cap of £2.49 billion, a PE ratio of 25.90, a PEG ratio of 1.37 and a beta of 0.34. Tate & Lyle has a twelve month low of GBX 319.40 and a twelve month high of GBX 580. The firm has a 50 day moving average of GBX 559.74 and a 200 day moving average of GBX 478.37. The company has a debt-to-equity ratio of 80.98, a current ratio of 2.71 and a quick ratio of 1.77.

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.