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Tate & Lyle Delivers on Integration and Margin Expansion

Why we think this is good

The RNS indicates that Tate & Lyle's performance in the 2025 financial year is in line with guidance, with the integration of CP Kelco progressing well. The company is seeing positive engagement from customers and expects to deliver the targeted cost synergies, while also improving CP Kelco's EBITDA margin. This suggests a stable and improving outlook for the combined business, warranting a 'good' sentiment score.

Key Points

  • Integration of CP Kelco on-track, operating as one combined business from 1 April 2025
  • Tate & Lyle's 2025 financial year results to be in line with guidance
  • CP Kelco trading well, will deliver over 90bps increase in EBITDA margin
  • Strong free cash flow, net debt to EBITDA expected to be 2.2x
  • Confident in delivering targeted cost synergies, positive customer engagement

Summary

The major food ingredients company reports a successful integration of its recent acquisition, with the combined business performing as expected and delivering margin improvements.

Tate & Lyle has provided an update on the integration of its recent acquisition, CP Kelco, stating that the process is on-track and the combined business will be operating as one from 1 April 2025. The company expects its 2025 financial year results to be in line with guidance, with CP Kelco delivering an over 90bps increase in EBITDA margin. Tate & Lyle also highlighted strong cash generation, with net debt to EBITDA expected to be 2.2x at the end of the financial year. The company is confident in delivering the targeted cost synergies and sees positive engagement from customers on the expanded portfolio and capabilities.

Key Dates

22 May 2025
Announcement of full-year results
1 July 2025
Capital Markets event for investors and analysts
3 July 2025
Site visit to Tate & Lyle's pectin facility and labs in Lille Skensved, near Copenhagen
GENERAL UPDATE