Tate & Lyle highlights CP Kelco integration is “on-track” while Q4 results are in line with expectations
Tate & Lyle says the integration of CP Kelco is progressing well. From April 1, 2025, both started operating as one combined business.
Tate & Lyle made the update and a pre-close statement for the year ended March 31, 2025, ahead of the announcement of full-year results, which will be reported in May.
Tate & Lyle recently acquired CP Kelco, a leading provider of pectin, specialty gums, and other nature-based ingredients, to create a leader in mouthfeel and significantly enhance its solutions capabilities.
The company develops ingredients and solutions that reduce sugar, calories, and fat, add fiber and protein, and provide texture and stability to food and drink in categories including beverages, dairy, bakery, snacks, soups, sauces, and dressings.
Synergy delivery
According to the trading update, Tate & Lyle performed as expected in Q4, and for the year ended March 31, 2025, will be in line with guidance. Excluding CP Kelco and in constant currency, the company expects revenue will be 5% lower, and EBITDA will be 4% higher.
CP Kelco continues to trade well and will deliver an increase in EBITDA margin of over 90bps in the year ended March 31, 2025.
Tate & Lyle says it continues to focus on key areas to deliver significant value from the combination, including establishing the new organization and leadership team operating under a new regional framework — Americas, Asia Pacific, Europe, Middle East, and Africa.
It is seeing positive engagement from customers to both expanded portfolios and capabilities.
Cash generation remains strong, with cash conversion for the 2025 financial year exceeding 75%, which is in line with Tate & Lyle’s long-term ambition.
Chief executive Nick Hampton says, “Notwithstanding the uncertain macroeconomic environment, we are confident in the medium-term growth potential of the business we have created and are focused on delivering the benefits of the combination with CP Kelco and accelerating topline growth.”
“Our confidence in the growth opportunity ahead has been strengthened by the positive engagement we are seeing from customers in both our expanded portfolio and capabilities.”
