Tate & Lyle warns of softer demand but flags progress on CP Kelco integration
Nick Hampton, chief executive.
Tate & Lyle has reported slower market demand in its pre-close statement for the six months to 30 September 2025, but said the combination with CP Kelco is already delivering early benefits and laying the foundations for future growth.
Chief executive Nick Hampton said the merger has strengthened the group’s position in food and drink reformulation, particularly in texture and mouthfeel. He pointed to “early cross-selling successes” in the first half and noted that the pipeline of opportunities has more than doubled in the past 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,” Hampton said.
Despite positive customer engagement, Tate & Lyle said a slowdown in demand — especially in the last two months — has weighed on near-term performance.
In the Americas, revenue is expected to be slightly lower on softer consumer demand.
In EMEA, revenue is set to decline by mid-single digits despite marginally higher volumes.
In Asia Pacific, sales are expected to be broadly flat after absorbing tariffs.
Group revenue for the half year is now forecast to fall 3–4% on a constant currency basis compared with pro forma comparatives, with EBITDA expected to decline by a high-single digit percentage.
The company added that the CP Kelco portfolio’s margins are continuing to improve and that revenue and cost synergies remain on track, alongside savings from its productivity programme.
Looking ahead, Tate & Lyle expects the demand environment to remain challenging in the near term but anticipates improved performance in the fourth quarter. This will be supported by accelerated top-line initiatives, stronger customer engagement, and synergies from the CP Kelco integration.
For the full year to 31 March 2026, the group now expects revenue and EBITDA to decline by a low-single digit percentage compared with the previous year.
Hampton added that longer-term growth prospects remain intact, supported by consumer demand for healthier, more nutritious food and drink and Tate & Lyle’s positions across sweetening, mouthfeel and fortification.
