Tate & Lyle plc

On a statutory basis, revenue was 16% higher and adjusted EBITDA was 13% higher, reflecting the CP Kelco acquisition. On an adjusted pro forma basis, revenue fell 3% and EBITDA fell 3% to GBP 415 million; adjusted profit before tax declined 5% to GBP 238 million. Adjusted EPS was 40.4p, free cash flow was GBP 164 million, and cash conversion was 70%. The reported EBITDA margin was 20.7%, net debt was GBP 939 million, and leverage was 2.3x. For FY 2027, management expects modest revenue growth on a constant-currency basis, weighted to the second half, and broadly flat EBITDA before an around $20 million impact from bio-gums rescheduling; capex is expected at GBP 110 million to GBP 130 million, and the adjusted tax rate is expected to be 23% to 25%.

Nick Hampton’s tone was cautious on the just-finished year but more constructive on the outlook, repeatedly emphasizing that the CP Kelco integration has been completed smoothly and without customer disruption. He said the business is now focused on volume-led growth, customer segmentation, targeted investment, and using the expanded portfolio to win more solutions-based business. He highlighted early signs of momentum in April, stronger cross-selling, and several customer examples that he said were not possible before the combination.

Sarah Kuijlaars framed the year as disappointing but in line with the revised October guide, citing the 3% decline in pro forma revenue and EBITDA to GBP 415 million. She pointed to GBP 53 million of productivity savings, GBP 24 million of CP Kelco synergies delivered in the year, and said the annualized run rate has already met the GBP 50 million synergy target ahead of plan. Free cash flow was GBP 164 million, cash conversion was 70%, and net debt was GBP 939 million; she also noted a 23.9% adjusted tax rate, GBP 45 million of net pretax exceptional charges, and a final dividend of 13.2p, taking the full-year dividend to 19.8p. On balance sheet and liquidity, she cited nearly GBP 1 billion of liquidity and an $800 million committed revolving facility extended to 2031.

Analysts pressed management on why FY 2027 volume growth should recover, with Nick pointing to April revenue strength, growing pipeline momentum, the annualization of the commercial integration, and easier comparables as tariff effects lap. Questions also focused on the delay to bio-gums benefits, with management describing it as a phasing issue tied to scaling fermentation technology rather than something that has gone wrong; Sarah said the GBP 20 million benefit now shifts into FY 2028 and the FY 2027 cash impact should be neutral. Other questions covered Middle East freight and energy costs, where management said exposure is limited, energy is about 5% of costs, and any freight inflation will be addressed through procurement, pricing, and operational discipline.