Tate & Lyle Plc Overview
Tate & Lyle is a London-headquartered global speciality food and beverage ingredients and solutions company. It has changed fundamentally from the sugar refiner its name still evokes. Over 2010–2024 it sold its sugar refining business, its European and then North American bulk corn businesses (Primient), and its remaining commodity exposure. It then acquired CP Kelco from J.M. Huber in November 2024 for about US$1.8bn, which made it a leader in plant-based texturants such as pectin, gellan, xanthan and citrus fibre. The group now operates three regional segments (Americas, EMEA, Asia Pacific) and is organised around three technology platforms: sweetening (sucralose, stevia, allulose, monk fruit), mouthfeel (speciality starches, gums, pectin) and fortification (soluble fibres, prebiotics, proteins). Its value proposition is reformulation: helping food and beverage manufacturers reduce sugar, calories and fat while keeping taste and texture. FY2026 revenue was £2.0bn with adjusted EBITDA of £415m. Demand weakness has hurt recent performance, and a pending £2.7bn takeover by Ingredion now frames the investment case.
What the company does
Tate & Lyle formulates, manufactures and sells functional ingredients and ingredient systems to food and beverage manufacturers. Its products change a food's sweetness, texture, stability or nutritional profile. Customers include global consumer packaged goods (CPG) companies in beverages, dairy, bakery and snacks, and soups, sauces and dressings, as well as regional manufacturers and, for part of the portfolio, distributors. Following the CP Kelco integration, the company describes itself as holding leading positions in sweetening, mouthfeel and fortification. Its stated mission is to help customers meet consumer demand for healthier, more nutritious and more sustainable food and drink (FY26 Results Statement, CEO commentary).
Company's own characterisation (paraphrased from FY2026 reporting)
Since 1 April 2025, the company has run CP Kelco and legacy Tate & Lyle as one combined, solutions-focused business under a regional model. All three regional segments sell the complete portfolio. Management stresses three things: the reformulation expertise of its applications, sensory and nutrition-science teams; "solution chassis" (pre-engineered, modular ingredient systems, initially in mouthfeel); and a cross-selling opportunity created by combining Tate & Lyle's starches, sweeteners and fibres with CP Kelco's pectin and biogums (FY26 Results Statement, "Executing our strategy").
Business model and revenue model
| Dimension | Characterisation |
|---|---|
| Revenue type | About 100% product revenue: B2B sale of manufactured ingredients and blends. There is no material service, subscription or licensing revenue. Technical and application support is bundled into product pricing ("solution selling"). |
| Contracting | A large share of volume is sold under annual or multi-year customer framework agreements, typically renewed for the calendar year. In FY26 these renewals set pricing for the year; management said that for calendar 2026 renewals it chose to prioritise volume and revenue growth (FY26 earnings call, 21 May 2026). |
| Pricing mechanics | Input-cost pass-through, with a lag, on corn- and sugar-linked lines; value-based pricing on speciality solutions; competitive pricing on sucralose (exposed to Chinese supply). |
| Channel mix | Legacy Tate & Lyle sold about 15% through distributors. More than half of CP Kelco's revenue historically went through distributors; migration to direct service is underway (FY26 Results Statement). |
| Innovation contribution | New Product revenue of £336m in FY26 (about 17% of group revenue); solutions represented 35% of new business wins by value (FY26). |
Value-chain position
Tate & Lyle sits in the middle of the food value chain. Upstream are agricultural raw materials: corn, tapioca, citrus peel (for pectin and citrus fibre), seaweed (carrageenan), stevia leaf, monk fruit, sugar (as a feedstock for sucralose) and fermentation feedstocks (for gellan and xanthan). Downstream are branded food and beverage manufacturers. After the Primient sale, the company is a net buyer of some corn-derived inputs, secured under long-term supply agreements with Primient. These agreements had about 18 years remaining as of 2024 (FY24 Results Statement).
Customer types and end-markets
Customer types: multinational CPG companies; regional and local food manufacturers; beverage bottlers; dairy processors; infant nutrition makers; foodservice suppliers; and distributors serving smaller customers.
Core categories (company-defined): beverages; dairy; soups, sauces and dressings; bakery and snacks. Infant nutrition, confectionery and some non-food uses are adjacent (CP Kelco gums also serve personal care and industrial markets).
Geographic exposure, FY26: Americas 49.6% of revenue (North America 39.2%, Latin America 10.4%); EMEA 31.7%; Asia Pacific 18.7% (FY26 Results Statement, Note 4).
Independent characterisation
Tate & Lyle is a mid-cap, mid-margin speciality ingredients company that only recently stopped being a commodity company. Its portfolio is strongest in texture and mouthfeel, where CP Kelco's pectin and biogums franchise has real technical barriers. It has a meaningful but structurally pressured sweetener business: sucralose faces Chinese competition and some "clean-label" customer moves away from artificial sweeteners. It also retains residual bulk sweetener and co-product exposure in Europe (£75m of FY26 revenue).
The core strategic question has always been whether a sub-£2.5bn-revenue company can match the scale of the leaders: Kerry, IFF, DSM-Firmenich, Cargill, ADM and Ingredion. The board's decision to recommend the Ingredion offer in June 2026, after two years of disappointing organic growth, effectively answers that question in favour of consolidation.
Strategy
Stated strategy (themes, paraphrased)
Purpose: transforming lives through the science of food.
Brand promise: "Science, Solutions, Society."
Strategic positioning: a growth-focused speciality food and beverage solutions business, aligned with long-term consumer trends towards healthier, tastier and more sustainable food, with leadership in sweetening, mouthfeel and fortification.
November 2025 "targeted actions" programme (progress per the FY26 statement)
| Priority | Initiatives | Status as of May 2026 |
|---|---|---|
| 1. Targeted investment to accelerate customer wins | Granular customer segmentation; realigned customer-facing teams; rebalanced distributor vs direct coverage; single integrated CRM platform in FY27; investment in applications, sensory, nutrition science and process development; solution chassis rollout; GenAI technical tool | £86m invested in innovation and solution selling; 8 mouthfeel chassis launched and 9 in development; new business pipeline up 15% in value |
| 2. Deliver CP Kelco benefits | Cost synergies of US$50m run-rate by FY27; revenue synergies up to US$70m by FY29; cross-selling training and incentives; migration from distributors to direct service | US$24m cost synergies delivered in FY26; US$50m run-rate achieved a year early (after April 2026 actions); about 10% of revenue synergy target delivered; cross-selling pipeline more than doubled in H2 |
| 3. Accelerate productivity | Five-year target raised to US$200m by FY28 (from US$150m, originally US$100m) | US$53m delivered in FY26; US$144m cumulative over three years |
| 4. Balance sheet and returns | Deleverage; progressive dividend; consider buybacks once net debt/EBITDA is below 2.0x | Leverage 2.3x; dividend held at 19.8p |
Medium-term financial targets (five-year ambition to 31 March 2028, set February 2023)
| Target | Ambition | Delivery |
|---|---|---|
| Revenue growth | 4–6% a year (underlying, excluding abnormal inflation or deflation) | FY24 (2)%; FY25 slightly lower; FY26 (3)% pro forma. Missed every year. |
| Adjusted EBITDA growth | 7–9% a year | FY24 +7%; FY25 towards the low end of the revised 4–7% guidance; FY26 (3)%. Mostly missed. |
| Organic ROCE improvement | Up to 50bps a year on average | FY24 +40bps organic; reported ROCE fell to 8.0% after the acquisition |
| Productivity | US$100m, raised to US$150m, raised to US$200m | US$144m delivered after three years. On track. |
| Cash conversion | ≥75% | FY24 85%; FY25 82%; FY26 70% |
| Solutions share of new business wins | 32% by FY28 | 35% in FY26 (definition now includes technical solutions) |
| Leverage | 1.0–2.5x net debt/EBITDA | 2.3x |
Sustainability commitments
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Science Based Targets initiative-validated GHG targets to 2028 (base year 2019), on a 1.5°C trajectory. These replaced the earlier 2030 targets in May 2024.
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100% sustainable corn sourcing equivalence (367,000 acres in 2023).
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Renewable electricity at named sites.
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A sugar-removal impact metric: 7.9 million tonnes removed from diets between March 2020 and FY24 (FY24 statement).
Strategy under Ingredion ownership
If the deal completes, Tate & Lyle's standalone strategy will be subsumed into Ingredion's. Ingredion targets about US$130m of run-rate net cost synergies by end-2030, at a one-time cost of about US$175m. It expects the deal to add to adjusted EPS in the first year after completion. It expects pro forma leverage of about 3.0x at completion, falling to about 2.5x within roughly 18 months (Ingredion 8-K, 8 June 2026).
Products & Services
Portfolio is organised by platform because all three regional segments sell every platform. Launch years and specifications are given where publicly stated. Pricing is not publicly disclosed for any line (B2B negotiated). Brand names follow company usage; ® and ™ status may vary by market.
Sweetening platform
| Product / brand | Description and capabilities | Target customers | Launch / latest | Notes |
|---|---|---|---|---|
| SPLENDA® Sucralose (ingredient) | High-intensity, non-nutritive sweetener roughly 600 times as sweet as sugar; heat- and pH-stable | Beverages, dairy, bakery, tabletop sweetener makers | Commercialised in the 1990s; US FDA approval 1998 | Made in McIntosh, Alabama, and Singapore. The SPLENDA consumer tabletop brand is owned by a third party; Tate & Lyle supplies the ingredient. Morgan Stanley estimated sucralose at about 9% of group sales (Sept 2025). |
| TASTEVA® Stevia Sweetener (including TASTEVA® SOL) | Stevia-leaf sweeteners with improved taste. TASTEVA SOL is a patent-protected solubility breakthrough for high-concentration applications. | Beverages, dairy | TASTEVA SOL launched FY24 | Among 9 New Products launched in FY24 (FY24 Results Statement) |
| OBTAINEX™ Stevia Leaf Extract and other stevia lines (from the Sweet Green Fields acquisition) | Rebaudioside-based stevia extracts and blends | Beverage and dairy reformulation | Acquired platform | — |
| DOLCIA PRIMA® Allulose | Rare sugar with sugar-like taste and browning and very low calories | Bakery, confectionery, beverages | Mid-2010s | US regulatory treatment of allulose calories was favourable from 2019 |
| PUREFRUIT™ Monk Fruit Extract | Natural high-intensity sweetener from luo han guo | Clean-label beverages, dairy | Late 2010s | — |
| ERYTESSE™ Erythritol | Polyol bulking sweetener | Sugar-free confectionery, bakery | — | — |
| Crystalline fructose, glucose syrups and other nutritive sweeteners | Bulk and semi-speciality sweeteners | Industrial food | Legacy | Residual European bulk sweeteners and co-products made up £75m of FY26 EMEA revenue |
| Sweetener systems and blends | Combinations of high-intensity sweeteners and fibres designed for specific applications | All core categories | Ongoing | Part of solution selling |
| BioHarvest Sciences partnership (development programme) | Plant-cell-based next-generation sweetener development | Future pipeline | Programme expanded in 2026 (press reports) | Development stage |
Mouthfeel and texturant platform (legacy Tate & Lyle and CP Kelco)
| Product / brand | Description and capabilities | Target customers | Launch / latest | Notes |
|---|---|---|---|---|
| CLARIA® functional clean-label starches | Corn- and tapioca-based starches labelled simply as "starch" or "corn starch", providing viscosity and stability | Dairy, soups, sauces, dressings | Launched mid-2010s; range extensions continue | Flagship clean-label texturant |
| REZISTA® and other modified food starches | Chemically modified starches for process tolerance (heat, shear, acid) | Sauces, retorted foods | Legacy | — |
| Tapioca- and waxy-corn speciality starches | Texture, gelling and stability | Global | Legacy | The Thai tapioca starch subsidiary Chaodee was sold in Aug 2025 |
| GENU® Pectin (CP Kelco) | Citrus-peel pectin: high- and low-methoxyl grades for gelling, acid-milk stabilisation and jams | Dairy drinks, jams, confectionery, beverages | Long-established; continuous grade launches | Plants in Denmark, Germany and Brazil per historical CP Kelco disclosures; current status not re-verified |
| GENU® Carrageenan (CP Kelco) | Seaweed-derived gelling and stabilising hydrocolloid | Dairy desserts, meat, plant-based | Legacy CP Kelco | — |
| KELCOGEL® gellan gum (CP Kelco) | Fermentation-derived gellan; suspends particles in beverages and forms gels | Plant-based milks, fortified beverages | Legacy CP Kelco | A biogum. Bio-gum capacity consolidation was delayed into FY28 (c.US$20m benefit deferred). |
| KELTROL® xanthan gum (CP Kelco) | Fermentation-derived thickener and stabiliser | Dressings, sauces, gluten-free bakery; also personal care and industrial uses | Legacy CP Kelco | Biogum |
| NUTRAVA® Citrus Fibre (CP Kelco) | Upcycled citrus fibre for texture and clean-label fat or starch replacement | Bakery, dairy, sauces | Late 2010s/2020s | Sustainability-led product |
| CEKOL® cellulose gum (CMC) (CP Kelco) | Thickener and stabiliser | Beverages, bakery, non-food | Legacy CP Kelco | — |
| SIMPLESSE® microparticulated whey protein (historically CP Kelco) | Fat-replacement protein | Dairy, frozen desserts | Legacy | — |
| Mouthfeel "solution chassis" | Pre-engineered modular texture systems that cut customer development time | Global CPG customers | Programme from 2024/25; 8 launched in FY26, 9 more in development | Key growth initiative (FY26 Results Statement) |
Fortification platform
| Product / brand | Description and capabilities | Target customers | Launch / latest | Notes |
|---|---|---|---|---|
| PROMITOR® Soluble Fibre (corn-based soluble fibre) | High-fibre, low-sugar ingredient allowing fibre claims; low glycaemic impact | Beverages, bars, bakery, dairy | Launched 2010s; non-GMO capacity added | €25m new non-GMO capacity in Boleráz, Slovakia, online May 2024 (FY24) |
| STA-LITE® Polydextrose | Low-calorie bulking soluble fibre; replaces sugar bulk | Biscuits (for example McVitie's Light Digestives, per City A.M.), confectionery | Long-established | Key reformulation enabler |
| Quantum Hi-Tech prebiotic fibres (GOS, FOS and related) | Prebiotic dietary fibres for gut health | Infant formula, dairy, supplements (China and Asia) | Acquired 2022 | Contributed to fortification growth in FY24 |
| Plant proteins (including chickpea protein via the Nutriati investment) | Protein fortification | Plant-based, bars, beverages | Investment c.2021–2022 (trade press) | Protein revenue nearly doubled like-for-like in FY24 (FY24 statement) |
| SODA-LO® salt microspheres | Salt-reduction technology | Snacks, bakery | 2010s | Status not re-verified |
Services (bundled, not separately monetised)
| Offering | Description |
|---|---|
| Customer Innovation & Collaboration Centres | 17 centres globally as of FY24, including Jakarta (new in FY24) and Singapore (with an automated lab for mouthfeel development). |
| Applications, sensory and nutrition science | Reformulation services funded within "innovation and solution selling" investment (£86m in FY26) |
| Generative AI technical search tool | Internal tool rolled out from February 2026 to applications, solutions and technical teams (FY26 Results Statement) |
Product Portfolio
| Product / brand | Description and capabilities | Target customers | Launch / latest | Notes |
|---|---|---|---|---|
SPLENDA® Sucralose (ingredient) | High-intensity, non-nutritive sweetener roughly 600 times as sweet as sugar; heat- and pH-stable | Beverages, dairy, bakery, tabletop sweetener makers | Commercialised in the 1990s; US FDA approval 1998 | Made in McIntosh, Alabama, and Singapore. The SPLENDA consumer tabletop brand is owned by a third party; Tate & Lyle supplies the ingredient. Morgan Stanley estimated sucralose at about 9% of group sales (Sept 2025). |
TASTEVA® Stevia Sweetener (including TASTEVA® SOL) | Stevia-leaf sweeteners with improved taste. TASTEVA SOL is a patent-protected solubility breakthrough for high-concentration applications. | Beverages, dairy | TASTEVA SOL launched FY24 | Among 9 New Products launched in FY24 (FY24 Results Statement) |
OBTAINEX™ Stevia Leaf Extract and other stevia lines (from the Sweet Green Fields acquisition) | Rebaudioside-based stevia extracts and blends | Beverage and dairy reformulation | Acquired platform | — |
DOLCIA PRIMA® Allulose | Rare sugar with sugar-like taste and browning and very low calories | Bakery, confectionery, beverages | Mid-2010s | US regulatory treatment of allulose calories was favourable from 2019 |
PUREFRUIT™ Monk Fruit Extract | Natural high-intensity sweetener from luo han guo | Clean-label beverages, dairy | Late 2010s | — |
ERYTESSE™ Erythritol | Polyol bulking sweetener | Sugar-free confectionery, bakery | — | — |
Crystalline fructose, glucose syrups and other nutritive sweeteners | Bulk and semi-speciality sweeteners | Industrial food | Legacy | Residual European bulk sweeteners and co-products made up £75m of FY26 EMEA revenue |
Sweetener systems and blends | Combinations of high-intensity sweeteners and fibres designed for specific applications | All core categories | Ongoing | Part of solution selling |
BioHarvest Sciences partnership (development programme) | Plant-cell-based next-generation sweetener development | Future pipeline | Programme expanded in 2026 (press reports) | Development stage |
| Product / brand | Description and capabilities | Target customers | Launch / latest | Notes |
|---|---|---|---|---|
CLARIA® functional clean-label starches | Corn- and tapioca-based starches labelled simply as "starch" or "corn starch", providing viscosity and stability | Dairy, soups, sauces, dressings | Launched mid-2010s; range extensions continue | Flagship clean-label texturant |
REZISTA® and other modified food starches | Chemically modified starches for process tolerance (heat, shear, acid) | Sauces, retorted foods | Legacy | — |
Tapioca- and waxy-corn speciality starches | Texture, gelling and stability | Global | Legacy | The Thai tapioca starch subsidiary Chaodee was sold in Aug 2025 |
GENU® Pectin (CP Kelco) | Citrus-peel pectin: high- and low-methoxyl grades for gelling, acid-milk stabilisation and jams | Dairy drinks, jams, confectionery, beverages | Long-established; continuous grade launches | — |
GENU® Carrageenan (CP Kelco) | Seaweed-derived gelling and stabilising hydrocolloid | Dairy desserts, meat, plant-based | Legacy CP Kelco | — |
KELCOGEL® gellan gum (CP Kelco) | Fermentation-derived gellan; suspends particles in beverages and forms gels | Plant-based milks, fortified beverages | Legacy CP Kelco | A biogum. Bio-gum capacity consolidation was delayed into FY28 (c.US$20m benefit deferred). |
KELTROL® xanthan gum (CP Kelco) | Fermentation-derived thickener and stabiliser | Dressings, sauces, gluten-free bakery; also personal care and industrial uses | Legacy CP Kelco | Biogum |
NUTRAVA® Citrus Fibre (CP Kelco) | Upcycled citrus fibre for texture and clean-label fat or starch replacement | Bakery, dairy, sauces | Late 2010s/2020s | Sustainability-led product |
CEKOL® cellulose gum (CMC) (CP Kelco) | Thickener and stabiliser | Beverages, bakery, non-food | Legacy CP Kelco | — |
SIMPLESSE® microparticulated whey protein (historically CP Kelco) | Fat-replacement protein | Dairy, frozen desserts | Legacy | — |
Mouthfeel "solution chassis" | Pre-engineered modular texture systems that cut customer development time | Global CPG customers | Programme from 2024/25; 8 launched in FY26, 9 more in development | Key growth initiative (FY26 Results Statement) |
| Product / brand | Description and capabilities | Target customers | Launch / latest | Notes |
|---|---|---|---|---|
PROMITOR® Soluble Fibre (corn-based soluble fibre) | High-fibre, low-sugar ingredient allowing fibre claims; low glycaemic impact | Beverages, bars, bakery, dairy | Launched 2010s; non-GMO capacity added | €25m new non-GMO capacity in Boleráz, Slovakia, online May 2024 (FY24) |
STA-LITE® Polydextrose | Low-calorie bulking soluble fibre; replaces sugar bulk | Biscuits (for example McVitie's Light Digestives, per City A.M.), confectionery | Long-established | Key reformulation enabler |
Quantum Hi-Tech prebiotic fibres (GOS, FOS and related) | Prebiotic dietary fibres for gut health | Infant formula, dairy, supplements (China and Asia) | Acquired 2022 | Contributed to fortification growth in FY24 |
Plant proteins (including chickpea protein via the Nutriati investment) | Protein fortification | Plant-based, bars, beverages | Investment c.2021–2022 (trade press) | Protein revenue nearly doubled like-for-like in FY24 (FY24 statement) |
SODA-LO® salt microspheres | Salt-reduction technology | Snacks, bakery | 2010s | — |
| Offering | Description |
|---|---|
Customer Innovation & Collaboration Centres | 17 centres globally as of FY24, including Jakarta (new in FY24) and Singapore (with an automated lab for mouthfeel development). |
Applications, sensory and nutrition science | Reformulation services funded within "innovation and solution selling" investment (£86m in FY26) |
Generative AI technical search tool | Internal tool rolled out from February 2026 to applications, solutions and technical teams (FY26 Results Statement) |
Financial Narrative
Income statement
Notes: - FY2022 adjusted PBT of £145m is continuing operations as reported in press coverage of the FY22 results. FY22 statutory continuing PBT of £42m is the comparative cited for FY23.
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FY22 adjusted diluted EPS for total operations was 56.0p (FY22 Results Statement); it is not comparable with the continuing series and is excluded from the table.
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Gross profit is not presented in the preliminary statements reviewed.
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The FY22 dividend of 21.8p excludes the £500m special dividend paid in May 2022.
Margins (%)
Margins are computed from reported figures. The FY25 pro forma adjusted EBITDA margin (including CP Kelco for the full year) was 21.0%.
Revenue CAGR. Reported revenue grew at about 9.9% a year from FY2022 to FY2026 (£1,375m to £2,006m). This is flattering because it includes inflation pass-through in FY23 and the CP Kelco acquisition. On an organic, constant-currency basis, revenue fell 2% in FY24, was described as slightly lower in FY25, and fell 3% (pro forma) in FY26. The FY23 organic surge was largely input-cost inflation. Organic growth has therefore fallen well short of the 4–6% medium-term ambition in every year since it was set in February 2023.
Balance sheet
Notes: - FY2022 net debt of £626m is total operations, before Primient closed (FY22 statement). FY22 equity of £1,620m is the 1 April 2022 opening balance from the FY24 statement of changes in equity.
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FY25 is restated for the final CP Kelco purchase price allocation.
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FY26 goodwill of £540m plus other intangibles of £254m gives £794m.
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FY26 net debt includes an £11m New Markets Tax Credit loan receivable as an offset.
Cash flow
Notes: - FY23 dividends paid include the £500m special dividend.
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FY23 cash conversion of 62% is inferred from the FY24 statement, which reported 85% as "23ppts higher".
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FY25 buybacks are the Primient-proceeds programme.
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Purchases of own shares for employee schemes (£13m in FY23, £25m in FY24, £7m in FY25, £2m in FY26) are excluded from buybacks.
Returns and ratios
Notes: - ROE, ROA, coverage and turnover are analyst calculations from reported figures.
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FY22 net debt/EBITDA of 1.3x is total operations, before Primient.
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ROIC is proxied by the company's ROCE, which uses average invested operating capital: £2,799m in FY26 vs £1,872m in FY25.
Cash conversion cycle (days): not publicly disclosed: Cost of goods sold is not given in the preliminary statements, so inventory and payable days cannot be computed reliably.
Commentary on trends, inflections and drivers
1. FY23 was an inflation-driven revenue spike.
Revenue jumped 27% to £1,751m, mainly because exceptional input-cost inflation was passed through. EBITDA margin compressed to 18.4%. Working capital absorbed £105m and free cash flow fell to £121m (62% conversion). That was the cost of carrying inflated inventory.
2. FY24 was the quality inflection.
Management deliberately chose margin over volume. Revenue fell 2% in constant currency, but EBITDA rose 7% to £328m and margin expanded 170bps to 19.9%. Inventory fell by £93m, cash conversion reached 85%, and net debt fell to £153m (0.5x). Productivity savings of US$41m beat the US$25m target. This was the peak of the "new Tate & Lyle" financial profile: ROCE of 17.4% on a light balance sheet.
3. FY25 was transformational and dilutive.
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The Primient sale (£277m proceeds, £109m pre-tax gain) and the CP Kelco acquisition (£1,446m total consideration, including £556m of shares) reshaped the balance sheet. Total assets rose to £3.7bn, net debt rose to £961m (2.2x) and goodwill and intangibles roughly doubled.
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Statutory profit collapsed. Continuing PBT fell to £88m because of £96m of exceptionals (including a £59m charge to exit the Thai tapioca facility) and £86m of M&A costs (including £56m of deal costs). The reported effective tax rate was 48.4%.
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Adjusted EPS fell to 50.3p because 75m new shares were issued and interest costs rose.
4. FY26 brought weak organic performance on top of the full CP Kelco consolidation.
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Pro forma revenue fell 3% and EBITDA fell 3% at constant currency. Adjusted EPS fell 16% to 40.4p as net finance expense nearly tripled to £49m (from the extra US$600m of acquisition debt) and the share count rose.
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ROCE fell to 8.0%, below any reasonable estimate of cost of capital, because average invested capital rose about 50% while profit before interest, tax and exceptionals fell.
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Statutory profit recovered to £98m (diluted EPS 21.7p) as exceptionals fell to £45m. These included £35m of integration costs, £15m for UK and US pension buy-outs, and a £20m release of the Thai provision.
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Free cash flow of £164m (70% conversion) missed the 75% target because of tariff-related and bio-gum-related inventory build. Interest paid rose to £50m.
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Positives: synergies (US$24m in-year; US$50m run-rate reached a year early), productivity (US$53m), and pension de-risking (both the main UK scheme and one US funded plan were bought out).
5. FY27 outlook: modest constant-currency revenue growth weighted to H2, and broadly flat EBITDA before a c.US$20m headwind from rescheduled bio-gum consolidation. In practice, that implies a small EBITDA decline. The Takeover Panel confirmed this outlook as an ordinary-course profit forecast under Rule 28.1. Capital expenditure is guided at £110–130m and the adjusted tax rate at 23–25%.
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Segment Overview
| Segment | Contents | Key sub-regions |
|---|---|---|
Americas | Full portfolio: speciality starches, sweeteners (including sucralose from McIntosh, Alabama), fibres, CP Kelco biogums and pectin | North America (~79% of segment revenue in FY26; management cites c.75%), Latin America |
EMEA | Full portfolio, plus residual European bulk sweeteners and co-products (£75m of FY26 revenue) | Europe; Turkey, Middle East & Africa |
Asia Pacific | Full portfolio, plus Quantum Hi-Tech prebiotic fibres (China) and Singapore sucralose | North Asia, China, Southeast Asia, Australasia |
Segment revenue (GBP Mn, reported)
| Segment revenue (GBP Mn, reported) | FY2025 | FY2026 |
|---|---|---|
Americas | 937 | 995 |
Europe Middle East and Africa | 536 | 636 |
Asia Pacific | 263 | 375 |
Group total | 1,736 | 2,006 |
Segment adjusted EBITDA (GBP Mn)
| Segment adjusted EBITDA (GBP Mn) | FY2025 | FY2026 |
|---|---|---|
Americas | 265 | 258 |
Europe Middle East and Africa | 85 | 101 |
Asia Pacific | 31 | 56 |
Group total | 381 | 415 |
Segment adjusted EBITDA margin (%)
| Segment adjusted EBITDA margin (%) | FY2025 | FY2026 |
|---|---|---|
Americas | 28.3 | 26.0 |
Europe Middle East and Africa | 15.9 | 15.9 |
Asia Pacific | 11.8 | 14.8 |
Group total | 21.9 | 20.7 |
Segment Revenue
| Segment | FY25 pro forma revenue (GBP Mn) | FY26 revenue (GBP Mn) | Constant-currency change | Volume/mix | Price | FY25 pro forma EBITDA (GBP Mn) | FY26 EBITDA (GBP Mn) | Constant-currency EBITDA change | FY26 share of group revenue |
|---|---|---|---|---|---|---|---|---|---|
Americas | 1,074 | 995 | (3)% | (3)% | 0% | 286 | 258 | (4)% | 49.6% |
EMEA | 659 | 636 | (5)% | 0% | (5)% | 107 | 101 | (6)% | 31.7% |
Asia Pacific | 391 | 375 | (1)% | +1% | (2)% | 53 | 56 | +9% | 18.7% |
Group | 2,124 | 2,006 | (3)% | (1)% | (2)% | 446 | 415 | (3)% | 100% |
Legacy segment revenue (GBP Mn)
| Legacy segment revenue (GBP Mn) | FY2023 | FY2024 |
|---|---|---|
Food and Beverage Solutions | 1,438 | 1,359 |
Sucralose | 184 | 174 |
Primary Products Europe | 129 | 114 |
Group total | 1,751 | 1,647 |
Legacy segment adjusted EBITDA (GBP Mn)
| Legacy segment adjusted EBITDA (GBP Mn) | FY2023 | FY2024 |
|---|---|---|
Food and Beverage Solutions | 273 | 281 |
Sucralose | 58 | 52 |
Primary Products Europe | -9 | -5 |
Group total | 322 | 328 |
Legacy segment EBITDA margin (%)
| Legacy segment EBITDA margin (%) | FY2023 | FY2024 |
|---|---|---|
Food and Beverage Solutions | 18.9 | 20.7 |
Sucralose | 31.3 | 29.8 |
Primary Products Europe | -6.5 | -4.8 |
Group | 18.4 | 19.9 |
Income Statement
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Revenue (GBP Mn) | 1,375 | 1,751 | 1,647 | 1,736 | 2,006 |
Adjusted EBITDA (GBP Mn) | — | 322 | 328 | 381 | 415 |
Statutory EBITDA (GBP Mn) | — | 291 | 301 | 234 | 352 |
Adjusted operating profit (GBP Mn) | — | 251 | 258 | 288 | 287 |
Statutory operating profit (GBP Mn) | — | 196 | 207 | 106 | 180 |
Net finance expense (GBP Mn) | — | 20 | 6 | 18 | 49 |
Adjusted profit before tax (GBP Mn) | 145 | 255 | 287 | 270 | 238 |
Statutory profit before tax (GBP Mn) | 42 | 152 | 226 | 88 | 131 |
Profit for year continuing ops (GBP Mn) | — | 127 | 179 | 45 | 98 |
Profit for year total ops (GBP Mn) | — | 190 | 188 | 140 | 98 |
Adjusted diluted EPS continuing (pence) | — | 49.6 | 55.5 | 50.3 | 40.4 |
Basic EPS continuing (pence) | — | 31.3 | 45.2 | 11.8 | 22.0 |
Diluted EPS continuing (pence) | — | 30.8 | 44.4 | 11.6 | 21.7 |
Diluted EPS total ops (pence) | — | 46.2 | 46.5 | 34.5 | 21.7 |
Dividend per share (pence) | 21.8 | 18.5 | 19.1 | 19.8 | 19.8 |
Margin Analysis (%)
| Metric | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
Adjusted EBITDA margin (%) | 18.4 | 19.9 | 21.9 | 20.7 |
Statutory EBITDA margin (%) | 16.6 | 18.3 | 13.5 | 17.5 |
Adjusted operating margin (%) | 14.3 | 15.7 | 16.6 | 14.3 |
Statutory operating margin (%) | 11.2 | 12.6 | 6.1 | 9.0 |
Net margin continuing ops (%) | 7.3 | 10.9 | 2.6 | 4.9 |
Adjusted effective tax rate (%) | 19.9 | 21.6 | 22.6 | 23.9 |
Balance Sheet
| Metric | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Total assets (GBP Mn) | — | 2,507 | 2,282 | 3,722 | 3,666 |
Cash and equivalents (GBP Mn) | — | 475 | 437 | 334 | 344 |
Borrowings incl leases current (GBP Mn) | — | 121 | 17 | 161 | 20 |
Borrowings incl leases non-current (GBP Mn) | — | 592 | 573 | 1,145 | 1,274 |
Total gross debt incl leases (GBP Mn) | — | 713 | 590 | 1,306 | 1,294 |
Net debt (GBP Mn) | 626 | 238 | 153 | 961 | 939 |
Total equity (GBP Mn) | 1,620 | 1,190 | 1,239 | 1,588 | 1,598 |
Goodwill and other intangibles (GBP Mn) | — | 452 | 406 | 841 | 794 |
Inventories (GBP Mn) | — | 446 | 353 | 560 | 572 |
Current assets (GBP Mn) | — | 1,284 | 1,087 | 1,295 | 1,334 |
Current liabilities (GBP Mn) | — | 572 | 338 | 611 | 493 |
Working capital current assets less current liabilities (GBP Mn) | — | 712 | 749 | 684 | 841 |
Cash Flow and Margin Analysis (%)
| Metric | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|
Net cash from operating activities (GBP Mn) | 66 | 208 | 164 | 230 |
Capital expenditure net (GBP Mn) | 71 | 110 | 121 | 125 |
Free cash flow company definition (GBP Mn) | 121 | 170 | 190 | 164 |
Cash conversion (%) | 62 | 85 | 82 | 70 |
Dividends paid (GBP Mn) | 570 | 76 | 80 | 88 |
Share buybacks (GBP Mn) | 0 | 0 | 216 | 0 |
Acquisitions net of cash (GBP Mn) | 192 | 0 | 807 | 0 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
ROCE company definition (%) | — | 17.6 | 17.4 | 12.8 | 8.0 |
ROE total ops profit to average equity (%) | — | 13.5 | 15.5 | 9.9 | 6.1 |
ROA total ops profit to average assets (%) | — | — | 7.9 | 4.7 | 2.7 |
Current ratio (x) | — | 2.24 | 3.22 | 2.12 | 2.71 |
Gross debt to equity (x) | — | 0.60 | 0.48 | 0.82 | 0.81 |
Net debt to adjusted EBITDA (x) | 1.3 | 0.7 | 0.5 | 2.2 | 2.3 |
Interest coverage adjusted operating profit to net finance expense (x) | — | 12.6 | 43.0 | 16.0 | 5.9 |
Asset turnover revenue to average assets (x) | — | — | 0.69 | 0.58 | 0.54 |
Region revenue (GBP Mn, reported)
| Region revenue (GBP Mn, reported) | FY2025 | FY2026 |
|---|---|---|
North America | 717 | 787 |
Latin America | 220 | 208 |
Europe | 437 | 534 |
Turkey Middle East and Africa | 99 | 102 |
Asia Pacific | 263 | 375 |
Total | 1,736 | 2,006 |
Region revenue (GBP Mn, pro forma)
| Region revenue (GBP Mn, pro forma) | FY2025 | FY2026 |
|---|---|---|
North America | 826 | 787 |
Latin America | 248 | 208 |
Europe | 552 | 534 |
Turkey Middle East and Africa | 107 | 102 |
Asia Pacific | 391 | 375 |
Total | 2,124 | 2,006 |
Region growth, pro forma reported currency (%) | FY2026 | — |
North America | -4.7 | — |
Latin America | -16.1 | — |
Europe | -3.3 | — |
Turkey Middle East and Africa | -4.7 | — |
Asia Pacific | -4.1 | — |
Total | -5.6 | — |
Legacy revenue line (GBP Mn)
| Legacy revenue line (GBP Mn) | FY2023 | FY2024 |
|---|---|---|
FBS North America | 687 | 642 |
FBS Asia Middle East Africa and Latin America | 432 | 396 |
FBS Europe | 319 | 321 |
Sucralose global | 184 | 174 |
Primary Products Europe | 129 | 114 |
Total | 1,751 | 1,647 |
Share Price History
| Date | Price (p) | Context | Source |
|---|---|---|---|
25 May 2023 | ~797.5 | FY23 results day | AJ Bell / Alliance |
16 Sep 2024 | ~670 | CFO appointment effective | Sharecast |
13 Feb 2025 | ~559.5 (−11%) | Q3 FY25 guidance trim | Alliance |
22 Sep 2025 | ~470 | Morgan Stanley downgrade | Sharecast |
1 Oct 2025 | ~406 | Profit warning | Alliance |
13 May 2026 | ~375 (implied) | Undisturbed price | Derived from the +44% move to 540p |
14 May 2026 | ~540 | Ingredion approach confirmed | Alliance / Morningstar |
8 Jun 2026 | Up about 14% on the day | Firm offer | Morningstar |
Early Oct 2026 | — | Merger-arbitrage spread to 595p cash plus 6.8p remaining dividend | StockAnalysis |
Average share price during fiscal year (pence) | FY2025 | FY2026 | — |
Average share price | 656 | 454 | — |
Valuation Multiples
| Multiple | Value at 595p cash | Basis |
|---|---|---|
Equity value | About £2.65bn | 595p × 445.4m shares |
Enterprise value | About £3.6–3.7bn | Sources differ: FoodTechBiz £3.6bn; PA Media £3.7bn |
EV / FY26 adjusted EBITDA | About 8.7–8.9x | £415m |
EV / FY26 revenue | About 1.8x | £2,006m |
P/E on FY26 adjusted EPS | About 14.7x | 40.4p |
P/E on FY26 statutory diluted EPS | About 27x | 21.7p |
P/B | About 1.7x | Equity £1,598m |
Dividend per share (pence)
| Dividend per share (pence) | FY2022 | FY2023 | FY2024 | FY2025 | FY2026 |
|---|---|---|---|---|---|
Total ordinary dividend | 21.8 | 18.5 | 19.1 | 19.8 | 19.8 |
Interim dividend | — | 5.4 | 6.2 | 6.4 | 6.6 |
Final dividend | — | 13.1 | 12.9 | 13.4 | 13.2 |
Capital Instruments
| Instrument | Amount | Maturity / terms |
|---|---|---|
Total borrowings (excluding leases) | £1,238m | Mix of USPP notes, term loans and acquisition debt (US$600m added for CP Kelco) |
US$180m term loan | ~£136m | Two years from Oct 2025 (about Oct 2027); SOFR plus margin; ~5.12% all-in (Nov 2025–Jan 2026) |
Lease liabilities | £56m (£12m current) | — |
Current borrowings including leases | £20m | Minimal near-term maturities |
Revolving credit facility | US$800m, undrawn | Matures 2031 (extended Apr 2026); sustainability-linked |
Covenant | Net debt/EBITDA ≤3.5x | 2.3x actual |
Analyst Conclusions
Management guidance (FY2027, constant currency)
-
Modest revenue growth, driven by volume and weighted to H2.
-
Broadly flat adjusted EBITDA, before the c.US$20m impact of rescheduling the bio-gum consolidation.
-
Capex £110–130m; adjusted effective tax rate 23–25%.
-
Limited impact assumed from the Middle East conflict.
-
The guidance is a Takeover Code Rule 28.1 profit forecast, reaffirmed by the directors.
Consensus
Broker targets were clustered around 375–500p before the bid (UBS, Morgan Stanley, Citi, Berenberg, Goldman), consistent with a low-growth standalone view.
Bull case (standalone or deal-break scenario)
-
Self-help is compounding. US$200m of productivity savings by FY28 plus US$50m of CP Kelco cost synergies (now run-rate) equals roughly two-thirds of FY26 adjusted operating profit (£287m) in cumulative savings, cushioning margins even without growth.
-
Revenue synergies and direct service are barely started. About 10% of the up-to-US$70m target was delivered in FY26, the cross-selling pipeline more than doubled in H2, and the new business pipeline grew 15%. A volume inflection in H2 FY27 would surprise a market anchored on three years of declines.
-
Asset quality supports a re-rating. A 20.7% EBITDA margin, leading pectin and biogum positions and a de-risked pension position are attractive. Ingredion's willingness to pay about 8.8x EBITDA, and Morningstar's 632p fair value, suggest the undisturbed ~375p undervalued the business.
Bear case
-
Structural growth problem. Organic revenue has fallen or stagnated for three years despite heavy innovation spending (£86m in FY26), and the medium-term ambition of 4–6% now looks unachievable on a standalone basis.
-
Returns have collapsed. ROCE of 8.0% and adjusted EPS down 27% from FY24 (55.5p to 40.4p) show the CP Kelco deal has so far destroyed per-share value, with leverage at 2.3x limiting further buybacks.
-
Deal-break downside is large. If antitrust remedies prove "value-destructive" (Ingredion retains withdrawal rights) or regulators block the deal, there is no break fee. The shares could revert towards the ~375p undisturbed level, while the business carries offer-period disruption, CEO succession uncertainty and retention costs.
Catalysts and monitorables (next 12 months)
-
EU Commission merger filing and Phase I/II decision; Foreign Subsidies Regulation review.
-
UK CMA and US HSR outcomes, including any remedy packages in starches and sweeteners.
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H1 FY27 results (November 2026): evidence of volume growth and confirmation of the 6.8p interim dividend.
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Q3 FY27 trading update (early 2027).
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CEO succession, given reports of Hampton's departure, and retention of key staff.
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Bio-gum consolidation progress and inventory unwind (cash conversion back to 75% or more).
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Sucralose demand trends and further CPG clean-label announcements.
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China recovery as the tariff impact annualises.
-
Court sanction hearing and long-stop date mechanics.
-
Merger-arbitrage spread as a market-implied completion probability.
Analyst verdict
Tate & Lyle reaches the end of its 165-year independent history as a business that did the hard strategic work but did not get the commercial results. Between 2018 and 2024, management changed the portfolio fundamentally. It sold sugar, then European bulk, then Primient, for more than US$1.5bn of total proceeds. It built a credible speciality franchise with margins around 20% and, in FY24, a ROCE of 17%. The CP Kelco acquisition was strategically sound because it filled the group's largest capability gap in texture. Integration discipline has been good: cost synergies were delivered a year early, and productivity savings are tracking well ahead of the original plan.
The failure was growth. In three successive years the company missed its own top-line ambition, as destocking, deflation pass-through, tariffs and consumer elasticity hit its CPG customers. Meanwhile the CP Kelco balance sheet roughly halved ROCE and cut adjusted EPS by more than a quarter. The October 2025 profit warning broke investor confidence, and by May 2026 the shares were at levels last seen in 2010. That made the company vulnerable to a well-placed strategic buyer.
Ingredion's 615p offer (595p cash plus dividends) is about 8.8x trailing EBITDA. It is a fair, not generous, price for a business with depressed earnings and genuine synergy potential, and the shareholder vote (98.6% of votes cast) shows investors agree. For holders today, the investment case is essentially a merger-arbitrage position: the remaining upside is the spread to 595p cash plus the 6.8p interim dividend, earned over roughly 9–15 months, against a deal-break downside of perhaps 30–35% if antitrust authorities force unacceptable remedies.
We consider completion likely given the complementary portfolios and Brazil's quick clearance, but European starch and sweetener overlaps are the critical path. Verdict: Hold / tender. The standalone thesis is now secondary to regulatory execution.
Nothing herein constitutes investment advice.
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View Subscription PlansExecutive Leadership
Executive Leadership Team
| Name | Title | Tenure | Prior roles / background |
|---|---|---|---|
Nick Hampton | Chief Executive | CEO since 2018; joined as CFO in 2014 | About 20 years at PepsiCo, latterly President, West Europe and SVP Commercial, Europe |
Sarah Kuijlaars | Chief Financial Officer (Board member) | Since 16 Sep 2024 | CFO of De Beers Group and Arcadis NV; Deputy CFO and Group Controller at Rolls-Royce (2016); CFO Civil Aerospace (2017); 25 years at Shell; NED at Inchcape |
Melissa Law | Chief Commercial & Transformation Officer | Since Aug 2025 (Chief Supply Chain Officer 2017–2025) | Internal |
Kim Faulkner | Chief Supply Chain Officer | Joined Aug 2025 | External hire |
Didier Viala | President, Americas | Since Dec 2025 | Previously CEO of CP Kelco |
William Magee | Former President, Americas | Replaced Dec 2025 | — |
Matthew Joy | Company Secretary | Current | — |
Board of Directors
| Name | Role | Independence | Notes |
|---|---|---|---|
David Hearn | Chair | Independent on appointment | Chair since 1 Jan 2024; bought 8,200 shares in 2025 |
Nick Hampton | Chief Executive | Executive | — |
Sarah Kuijlaars | CFO | Executive | — |
Kimberly (Kim) Nelson | Senior Independent Director | Independent | SID since 1 Jan 2024 |
Warren Tucker | NED, Audit Committee Chair | Independent | Interim Chair until Dec 2023 |
Jeffrey (Jeff) Carr | NED (Audit and Nominations committees) | Independent | Joined 1 Apr 2024 |
Steve Foots | NED | Independent | Joined 24 Jul 2025 |
Heather Harding | NED | Independent | Joined 27 Jan 2026 |
Lars Frederiksen | Former NED | — | Stepped down 24 Jul 2025 |
Glenn Fish | Former NED | — | Stepped down 26 Jan 2026 |
Directors' Remuneration
| Executive | Salary | Source |
|---|---|---|
Sarah Kuijlaars | £500,000 base on appointment (2024) | Appointment announcement, 13 Aug 2024 |
Major Shareholders
| Holder | Stake | Notes |
|---|---|---|
Huber Equity Corporation (J.M. Huber) | ~17% (75m consideration shares issued Nov 2024; the Rule 2.7 announcement references about 17.1% of share capital as of 5 June 2026) | Gave an irrevocable undertaking to vote for the Ingredion scheme. Up to 10m further contingent CP Kelco consideration shares were due around the second anniversary, but their fair value had been marked to nil by 31 March 2026 because share-price conditions were not met. |
Directors | About 0.3% (irrevocables from directors, including shares held via ADSs, per Rule 2.7) | — |
Competitive Landscape
Peer Comparison
| Platform | Key competitors |
|---|---|
Sweetening (high-intensity and rare sugars) | Ingredion (including PureCircle stevia), Cargill (EverSweet), Chinese sucralose producers (for example JK Sucralose and Anhui Jinhe Industrial), Sweegen, DSM-Firmenich (taste modulation), ADM, Roquette (polyols) |
Mouthfeel / texturants | Ingredion (speciality starches, hydrocolloids), Cargill (starches, pectin, carrageenan), Kerry, IFF (hydrocolloids, part of the former DuPont Nutrition), Roquette, Herbstreith & Fox (pectin), Fufeng and Deosen (xanthan, China), DSM-Firmenich (gellan), Darling Ingredients/Rousselot (gelatin) |
Fortification | Ingredion, Roquette (fibres, plant protein), ADM, Beneo (Südzucker; chicory fibres), Cargill, Kerry, FrieslandCampina Ingredients (GOS) |
Solutions and systems | Kerry (taste and nutrition), IFF, Givaudan, DSM-Firmenich, Ingredion |
Peer Comparison FY2026
| Company | Revenue (latest FY) | Organic growth | Adjusted EBITDA margin | Innovation / R&D intensity | Data status |
|---|---|---|---|---|---|
Tate & Lyle | £2,006m (FY26; about US$2.7bn at 1.34) | (3)% pro forma, constant currency | 20.7% | About 4.3% (innovation and solution selling) | Verified (FY26 statement) |
Ingredion | About US$7.2bn net sales (CY2025) | — | — | — | Revenue verified (vegconomist / Ingredion announcement). Ingredion cut its CY2026 outlook after Q1 2026, partly because of its clean-label "alternative ingredients" unit (Bloomberg). |
