Tate & Lyle (LON:TATE) Posts Quarterly Earnings Results

Tate & Lyle (LON:TATE) announced its quarterly earnings data on Thursday. The company reported GBX 22 EPS for the quarter, Digital Look Earnings reports. Tate & Lyle had a net margin of 1.71% and a return on equity of 2.17%. The firm had revenue of GBX 200.60 billion during the quarter.

Here are the key takeaways from Tate & Lyle’s conference call:

• Tate & Lyle said the CP Kelco integration is complete and has been delivered without disruption to customers, with management now focused on volume-led top-line growth.
• Full-year results were in line with revised guidance, but still reflected a tough demand backdrop: adjusted EBITDA fell 3% to GBP 415 million and revenue declined 3% on a pro forma basis.
• Management highlighted weaker performance in Europe and Latin America, especially from bulk sweeteners and lower sweetener volumes, while tariffs and softer market demand continued to weigh on growth.
• The company reported strong progress on its strategic actions, including GBP 24 million of CP Kelco cost synergies, GBP 53 million of productivity savings, and a new revenue-synergy pipeline that has more than doubled to over $100 million.
• Management sees early signs that the combined business is creating customer wins, citing traction in mouthfeel, clean label, and fiber fortification; for FY2027 it expects modest revenue growth and broadly flat EBITDA before the bio-gums timing impact.

Tate & Lyle Stock Performance

Shares of TATE opened at GBX 505 on Friday. The company has a current ratio of 2.19, a quick ratio of 1.77 and a debt-to-equity ratio of 83.31. The stock has a market cap of £2.23 billion, a P/E ratio of 90.18, a PEG ratio of 1.37 and a beta of 0.28. The company has a 50-day moving average of GBX 373.61 and a two-hundred day moving average of GBX 376.09. Tate & Lyle has a 12-month low of GBX 319.40 and a 12-month high of GBX 585.

Analyst Ratings Changes

TATE has been the subject of several recent analyst reports. Deutsche Bank Aktiengesellschaft upgraded shares of Tate & Lyle to a “buy” rating and raised their price objective for the company from GBX 460 to GBX 595 in a research note on Friday, May 15th. UBS Group reiterated a “neutral” rating and issued a GBX 375 price objective on shares of Tate & Lyle in a research note on Monday. Two investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of GBX 490.

Tate & Lyle Company Profile

Tate & Lyle PLC, together with its subsidiaries, provides ingredients and solutions to the food, beverage, and other industries in the United States, the United Kingdom, other European countries, and internationally. It operates through three segments: Food & Beverage Solutions, Sucralose, and Primary Products. The company offers dairy products, soups, sauces, and dressings; bakery products and snacks; texturants; nutritive sweeteners, such as high fructose corn syrup and dextrose; fibres; and stabilizers and functional systems.