5th Nov 2026 14:12
(Alliance News) - Tate & Lyle PLC on Thursday reported a decline in profit as it said the prolonged Middle East conflicted had made the impact felt by inflationary costs more pronounced than anticipated.
The London-based food and beverage ingredients maker reported a pretax profit of GBP46 million for the half year ended September 30, down 37% from GBP74 million a year earlier.
Revenue increased 1.9% to GBP1.04 billion from GBP1.02 billion.
Adjusted pretax profit fell 18% to GBP102 million, while adjusted earnings before interest, tax, depreciation and amortisation declined 8%.
Regionally, Asia Pacific revenue rose 7%, supported by a 9% improvement in volume and mix. However, adjusted Ebitda fell 13% against a strong comparative period.
Europe, the Middle East & Africa revenue fell revenue 4% and adjusted Ebitda fell 28%, reflecting lower volumes and prices for bulk sweeteners and co-products, as well as wider pricing pressures and higher energy costs.
Tate & Lyle raised its interim dividend by 3.0% to 6.8 pence per share, from 6.6 pence a year earlier.
Tate & Lyle said the prolonged conflict in the Middle East had made the impact of cost inflation "more pronounced than originally expected". It intends to pass higher costs on to customers as it renews framework agreements for the 2027 calendar year, while seeking to offset inflation through procurement initiatives and operational discipline.
Chief Executive Nick Hampton said first half profit was in line with expectations, as strong growth in Asia Pacific and a robust performance in the Americas offset challenging conditions in Europe, the Middle East & Africa.
"Looking ahead, as we continue to operate in a challenging inflationary environment, we remain focused on what we can control – on continued strategic execution, driving top-line growth, maintaining cost discipline and delivering for our customers," he said.
The company maintained its outlook for the financial year ending March 31, 2027, expecting modest revenue growth and broadly flat earnings before interest, tax, depreciation and amortisation, before an about USD20 million impact from the rescheduling of the consolidation of bio-gums capacity.
Tate & Lyle shares were down 0.3% to 563.50 pence on Thursday afternoon in London.
By Niall Holden, Alliance News reporter
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