Tate & Lyle returns to sales growth as costs weigh on profits

Tate & Lyle plans to pass higher costs on to customers through 2027 contract renewals after first-half sales returned to growth but profitability weakened.

Revenue reached £1.039 billion (US$1.40 billion) in the six months ended September 30, 2026, up 1% at constant currency compared with the same period in 2025.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) fell 8% at constant currency to £197 million (US$265.15 million) from £215 million (US$289.37 million).

Lower pricing helped secure business, with volume/mix increasing 3% while prices declined 2%. The gains were insufficient to offset pricing pressure, inflation, and investment in the business.

“Customer engagement is increasing, and this is turning the strength of our new business pipeline into volume-led growth,” said Nick Hampton, Tate & Lyle’s chief executive, in the results announcement. 

Fiber and formulation support growth

Tate & Lyle reported double-digit revenue growth for Promitor soluble corn fiber. Solutions requiring technical support or laboratory work accounted for 58% of new business wins by value, up 15 percentage points from a year earlier.

The fiber performance follows the company’s emphasis on metabolic health as an opportunity for food reformulation.

Speaking to Food Ingredients First in August, Emma Cahill, global marketing director for sweeteners, fibers, and GLP-1, described growing interest in ingredients that address fiber enrichment, carbohydrate content, and product functionality alongside sugar reduction.

The company has also highlighted how clean label mayonnaise reformulation can reduce oil and egg while maintaining texture and stability.

Its toolkit combines sensory analysis with functional starch and citrus fiber, reflecting manufacturers’ need to balance nutrition, ingredient declarations, and costs within the same recipe.

Its presentation also highlighted fiber fortification work with Pladis using Sta-Lite polydextrose, with a formulation providing 4.7 g of fiber per 100 g to support a source-of-fiber claim.

Cost pressures persist as outlook holds

Regional results showed the gap between sales growth and earnings. At constant currency, Asia-Pacific revenue increased 7%, but adjusted EBITDA fell 13%. In Europe, the Middle East, and Africa, revenue declined 4% and adjusted EBITDA fell 28%. Americas revenue rose 1%, while adjusted EBITDA was flat.

The company delivered US$27 million in productivity savings during the half, bringing cumulative savings to US$171 million toward its US$200 million target by March 31, 2028.

Tate & Lyle maintained its outlook for the financial year ending March 31, 2027. At constant currency, it expects modest revenue growth and broadly flat EBITDA before an approximately US$20 million impact from rescheduling its bio-gums capacity consolidation.

The company said the prolonged Middle East conflict had intensified inflationary pressures. It intends to recover higher costs as customer framework agreements are renewed for calendar 2027.

Meanwhile, its proposed acquisition by Ingredion, approved by shareholders in July, remains subject to regulatory clearances. The transaction would combine portfolios spanning texture, sweetening, sugar reduction, and fortification. Completion is still expected in the second half of calendar 2027.