Company Reports

Tate & Lyle is focused on the increasing use of alternative ingredients in food and beverages to remove unhealthy components (such as sugar, fat, and salt), improve nutritional credentials through added fiber, enhance "mouthfeel," and increase the shelf life of products. We assign the company a narrow moat rating as we believe that efforts over the last few years to optimize the portfolio have improved its pricing power and competitive position.

Tate & Lyle is focused on the increasing use of alternative ingredients in food and beverages to remove unhealthy components (such as sugar, fat, and salt), improve nutritional credentials through added fiber, enhance "mouthfeel," and increase the shelf life of products. We assign the company a narrow moat rating as we believe that efforts over the last few years to optimize the portfolio have improved its pricing power and competitive position.

Tate & Lyle's and Ingredion's boards of directors reached an agreement on the terms of Ingredion's all-cash proposal to acquire 100% of Tate & Lyle, in line with the consideration announced on May 14. Tate & Lyle shares gained approximately 14% on June 8 following the announcement.

Tate & Lyle reported another 3% revenue decline on a pro forma basis for the fiscal year ending March 2026, while sales accelerated sequentially in the fourth quarter. Management acknowledged disappointing results due to soft demand but expects sales momentum to build in the future.

Ingredion has made a conditional all-cash proposal to acquire 100% of Tate & Lyle for GBX 615 per share, comprising cash and permitted dividends. Tate & Lyle shares jumped nearly 50% on May 14 on the news.

Tate & Lyle is focused on the increasing use of alternative ingredients in food and beverages to remove unhealthy components (such as sugar, fat, and salt), improve nutritional credentials through added fiber, enhance "mouthfeel," and increase the shelf life of products. We assign the company a narrow moat rating as we believe that efforts over the last few years to optimize the portfolio have improved its pricing power and competitive position.

Tate & Lyle is focused on the increasing use of alternative ingredients in food and beverages to remove unhealthy components (such as sugar, fat, and salt), improve nutritional credentials through added fiber, enhance "mouthfeel," and increase the shelf life of products. We assign the company a narrow moat rating as we believe that efforts over the last few years to optimize the portfolio have improved its pricing power and competitive position.

Tate & Lyle reported a 3% revenue decline on a pro forma basis for the fiscal nine months ended Dec. 31, 2025, and reaffirmed the guidance it downgraded earlier in the year. Shares fell almost 5% at the market's open on Feb. 26.

Tate & Lyle reported a 3% revenue decline and a 6% EBITDA decline on a constant-currency and pro forma basis, in line with expectations following its October preclose statement. Shares rose 5% on Nov. 6 as investors welcomed faster-than-expected cost synergy realization.

Tate & Lyle issued a profit warning ahead of its first-half fiscal 2026 results on Nov. 6, with weaker market demand driving the downgrade. Management expects revenue and EBITDA declines in the first half, as well as a weaker full-year performance. Shares fell about 10% in early trading on Oct. 1.

Tate & Lyle is focused on the increasing use of alternative ingredients in food and beverages to remove unhealthy components (such as sugar, fat, and salt), improve nutritional credentials through added fiber, enhance "mouthfeel," and increase the shelf life of products. We assign the company a narrow moat rating as we believe that efforts over the last few years to optimize the portfolio have improved its pricing power and competitive position.

Tate & Lyle is focused on the increasing use of alternative ingredients in food and beverage to remove unhealthy components (sugar, fat, salt), improve nutritional credentials through added fiber, enhance "mouthfeel," and increase the shelf life of products. We assign the company a narrow moat rating as we believe that efforts over the last few years to optimize the portfolio have improved its pricing power and competitive position.

Tate & Lyle reported a 5% revenue decline and 4% adjusted EBITDA growth in constant currency in fiscal 2025 (excluding CP Kelco), in line with guidance. Shares fell around 5% intraday on May 22, given cautious fiscal 2026 guidance amid tariff uncertainty.

Tate & Lyle reported a 4% constant-currency revenue decline in its fiscal third quarter, excluding the November 2024 acquisition of CP Kelco. A reduction in fiscal 2025 revenue growth and EBITDA guidance sent the shares 7% lower in Feb. 13 trading.

Tate & Lyle is focused on the increasing use of alternative ingredients in food and beverage to remove unhealthy components (sugar, fat, salt), improve nutritional credentials through added fiber, and increase the shelf life of products. We assign the company a narrow moat rating as we believe that efforts over the last few years to optimize the portfolio have improved its pricing power and competitive position.

Tate & Lyle reported adjusted EBITDA growth of 6% for the first half of fiscal 2025, despite a 7% revenue decline. The full-year guidance was confirmed, and the acquisition of CP Kelco is approaching completion.

We confirm our GBX 900 fair value estimate for narrow-moat Tate & Lyle after it announced an agreement to acquire US-based specialty chemical producer CP Kelco from J.M. Huber for a total consideration of USD 1.8 billion on a debt-free, cash-free basis. CP Kelco’s portfolio consists primarily of natural-based ingredients, such as pectin and specialty gums used to improve the “mouthfeel” of food products. This represents a key platform for Tate & Lyle that is now being strengthened by CP Kelco’s leading portfolio and is aligned with consumer demand for clean-label, plant-based, fiber-rich food products.

Narrow-moat Tate & Lyle reported full-year fiscal 2024 results broadly in line with our expectations and management’s guidance. Adjusted EBITDA was 2% ahead of the prior year, or 7% ahead in constant currency. The volume momentum started to improve in the fourth quarter as customer destocking ended and management saw some signs of ameliorating consumer confidence. Still, as previously guided, the high-single-digit input cost deflation started to add pressure to the top line in the fourth quarter as the company passed through some of the benefits to its customers. This will continue to weigh on the top line at least in the first half of fiscal 2025, although it should be partially offset by gradually improving volume momentum throughout the year. Overall, management guided for a slight decline in revenue and adjusted EBITDA growth in the range of 4% to 7% in fiscal 2025. The input cost deflation will benefit the bottom line, further supported by the ongoing productivity program.

Narrow-moat Tate & Lyle's third-quarter fiscal 2024 revenue was down 4% in constant currency, driven by continued volume pressure from soft consumer demand and customer destocking coupled with a reduced contribution from price increases. Although the volume decline has remained relatively constant in the third quarter compared with the first half of the fiscal year, approximately negative 8% across both periods for food and beverage solutions, input cost deflation has started to add pressure to the top line.