Sweetener and ingredients maker Tate & Lyle has lowered its revenues and profits expectations for the first half and the year as a whole on the back of a slowdown in market demand.
A pre-close trading statement for the six months to 30 September highlighted challenges across Europe, the Americas and Asia for the London-listed group.
Tate & Lyle guided for first-half revenues to be 3% to 4% lower year on year. The group said EBITDA would also be lower, reflecting the softness in the top line and ongoing growth investments.
The group added it expected the market environment to remain challenging but predicted its performance would improve in the fourth quarter.
However, revenues and EBITDA are both now forecast to decline by low-single digit per cent for the year to 31 March 2026.
CEO Nick Hampton said the group continued to make “good progress” following the combination with pectin and speciality gums maker CP Kelco last year.
“While the level of customer engagement is high, we have seen a slowdown in market demand, particularly in the last two months, which in turn has slowed our recent performance,” he added.
“Against this challenging backdrop, we are accelerating a series of steps to drive delivery of top-line growth.”
He said: “In April, we started to operate as one combined business. Since then, we have made real progress setting up the business for future growth, while also operating in a period of considerable economic volatility.
“Looking ahead, the fundamental growth drivers of our business remain strong. Consumer demand for healthier and more nutritious food and drink continues to grow. Our expertise in food and drink reformulation and our leading positions across sweetening, mouthfeel and fortification, mean we are well-positioned to capture this growth.”
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