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Investing.com -- Tate & Lyle warned that full-year profit and revenue will slip as weak demand in the Americas drags on performance, with additional pressure in Europe and a softer first half than expected.
Shares in the British food ingredients maker tumbled more than 9% in London trading following the move.
The company now sees revenue and EBITDA for the year to March 31, 2026, falling by low single digits at constant currency, compared with earlier guidance for mid-single-digit sales growth and profit rising ahead of revenue.
First-half sales are expected to be 3% to 4% lower and EBITDA down by a high-single-digit percentage, reflecting weaker consumer demand and the timing of cost savings.
Regionally, Tate said Americas revenue will be slightly lower, Europe, the Middle East and Africa down mid-single digits despite higher demand, and Asia Pacific broadly flat after absorbing tariffs.
Management pointed to improving margins at its CP Kelco portfolio, with cost and revenue synergies from the acquisition still on track, though more heavily weighted toward the second half.
The group expects performance to improve from the fourth quarter, helped by actions to drive sales growth and by benefits from CP Kelco, including cross-selling, switching distribution relationships to a direct model and accelerating synergies.
Analysts at Kepler Cheuvreux said the update marked “another blow to the investment case,” adding that while peers also reported weaker markets, Tate has underperformed in Europe.
“For the shares to rerate, a convincing and consistent top-line growth is required, and over the past quarters, this has lacked,” analyst Karel Zoete wrote. "Based on this, the shares are now trading even at a discount to the period when Tate was a commodity player."
On a more positive note, Zoete noted that the CP Kelco integration is progressing well and that the base of weak comparisons in last year’s fourth quarter could help near-term momentum.