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

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

TATE opened at GBX 519.50 on Thursday. The stock’s 50 day simple moving average is GBX 370.44 and its 200-day simple moving average is GBX 375.23. 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 £2.29 billion, a PE ratio of 92.77, a P/E/G ratio of 1.37 and a beta of 0.28. Tate & Lyle has a 1 year low of GBX 319.40 and a 1 year high of GBX 610.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on the company. Deutsche Bank Aktiengesellschaft upgraded Tate & Lyle to a “buy” rating and upped their price target for the stock from GBX 460 to GBX 595 in a report on Friday, May 15th. UBS Group restated a “neutral” rating and issued a GBX 375 price objective on shares of Tate & Lyle in a research note on Monday. Two research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus 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.