gross margin
—
FY 2027
management framework
TATE & LYLE PLC
Last · LSE£5.595-0.015 (-0.27%)stale · yahoo · 51h ago
Market cap£2.5B442.6M sh
P/E · TTM25.4fwd 13.1 · eps 0.22
Beta0.34vs S&P 500
Div yield0.04%annual · TTM
52w range
£3.194£5.80
Volume947.3Ksession
| Revenue | £2.0B |
|---|---|
| Operating income | £180.0M |
| Net income | £97.0M |
| Free cash flow | £114.0M |
| Operating margin | 9.0% |
| Net margin | 4.8% |
| Return on equity | 6.1% |
| Period | 2026 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Operational upside is credible, but FY27 earnings are flat and the recovery remains back-end loaded and unproven.
Hold: Tate & Lyle delivered FY26 pro forma revenue of £1?
No, reported figures show like-for-like revenue down 3% and adjusted EBITDA down 3% to £415 million, with FY27 EBITDA expected broadly flat and growth weighted to the second half. The CP Kelco combination is producing encouraging early customer traction and has already delivered the targeted $50 million annualized cost synergies, but weak demand, delayed bio-gums savings and unresolved competitive pressure make this a wait-and-see recovery rather than a clean buy; Ingredion’s conditional proposal adds significant event uncertainty.
Themes
- Cp Kelco Integration
- Fy27 Outlook
- Bio Gums Delay
- Ingredion Takeover
- China Competition
- Fiber Growth
Near term
April revenue was described as strong, but management gave no quantified growth rate and expects FY27 volume growth to be weighted to the second half.
FY27 capex is guided to £110 million–£130 million, while cash conversion was only 70% in FY26 versus a target above 75%.
Middle East exposure is limited at approximately 1% of revenue and energy is about 5% of costs, but freight and other inflation could require further pricing actions.
The £20 million bio-gums benefit will not arrive in FY27 because the capacity consolidation has been rescheduled; management says it should begin contributing in FY28.
Ingredion’s conditional acquisition proposal could dominate near-term valuation, but the company cannot discuss terms, diligence or timing.
Longer term
CP Kelco revenue synergies target approximately $70 million by FY29, equivalent to 10% of CP Kelco revenue; only around 10% of that target has been delivered so far.
The cross-selling pipeline more than doubled in the second half to over $100 million, while the new-business pipeline rose 15% and solutions represented 35% of new-business wins.
The strategic moat depends on combining sweetening, mouthfeel and fortification capabilities into customer formulation solutions; management cited multiple customer launches, but did not quantify resulting revenue.
Productivity savings reached $144 million cumulatively over three years, with a longer-term target of $200 million by FY28.
China remains a structural competitive risk in sweeteners and gums, particularly xanthan, where local excess capacity is pressuring pricing and growth.
Leverage is manageable but still elevated at 2.3x net debt/EBITDA after CP Kelco, limiting the margin for another large acquisition before earnings recover.
Red flags
FY27 guidance is only 'modest revenue growth' with broadly flat EBITDA, implying no near-term earnings conversion despite substantial synergy and productivity claims.
The expected recovery relies on H2 volume growth, customer pipeline conversion and easier tariff comparisons rather than a demonstrated broad-based demand recovery.
Analyst questioning exposed limited disclosure around the bio-gums delay: management characterized it as a phasing issue but provided no detailed milestones or downside sensitivity beyond confidence that the £20 million benefit will arrive in FY28.
Management declined to quantify Tate & Lyle’s exposure to Primient or provide detailed change-of-control terms, saying only that the long-term supply agreement survives a change of control.
Management acknowledged direct competition with Ingredion in starches but declined to elaborate, leaving potential overlap and transaction-risk implications unquantified.
Chinese competition is already affecting parts of the sweetener and gum portfolio, especially xanthan, while China demand remains stable rather than strongly growing.
Forward outlook
operating margin
—
FY 2027
management framework
ebitda
—
FY 2027
management framework
revenue
—
FY 2027
management framework
revenue
110–130 $million
FY 2027
official guidance
Recommendation history
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
Upcoming earnings
4:30 PM UTC+1
Period
Sep 2026
Est. EPS
—
Est. revenue
0
Earnings transcripts
- Issuer webcast
CA081E0460CFA11BD671EA23D9AFB080
TATE & LYLE PLC
- Issuer webcast
Webcast
TATE & LYLE PLC
- Issuer IR
fy26 results bloomberg final transcript 0
TATE & LYLE PLC
- Issuer webcast
BE2A6066A437B82C24D0243B921ADE5B
TATE & LYLE PLC
- Issuer IR
tate lyle hy26 results bloomberg final transcript0
TATE & LYLE PLC
- Issuer IR
tate lyle hy26 pre close bloomberg final transcript
TATE & LYLE PLC
Press & signals
- GlobeNewswire
Dimensional Fund Advisors Ltd. : Form 8.3 - TATE & LYLE PLC - Ordinary Shares
- GlobeNewswire
Dimensional Fund Advisors Ltd. : Form 8.3 - TATE & LYLE PLC - Ordinary Shares
- GlobeNewswire
Dimensional Fund Advisors Ltd. : Form 8.3 - TATE & LYLE PLC - Ordinary Shares
The rest of this company's wire — with summaries and source links — is part of Pro.
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