Tate & Lyle: FY26 inline; FY27 outlook subdued, no new news on INGR

Research evidence excerpt

Tate & Lyle: FY26 inline; FY27 outlook subdued, no new news on INGR

Equity Research

European Consumer Staples

21 May 2026

Tate & Lyle

FY26 inline; FY27 outlook subdued,

no new news on INGR First Look

Tate FY26 inline with EBITDA £415m; FY27 guide implies TATE.L/TATE LN EQUAL WEIGHT

NEUTRAL~£400m (flat underlying, bio-gums timing) vs cons £419m. EuropeanStaples Consumer

Pricing pressure persists with modest volume-led growth (H2- Price Target GBp 395

weighted). No update on 615p Ingredion bid; 11 June Price (20-May-26) GBp 522 Potential Upside/Downside -24.3%

Source: Bloomberg, Barclays Researchdeadline.

Tate reported FY26 broadly in line with expectations, with adj. EBITDA of £415m (-3% cFX) versus European Consumer Staples

Vuma consensus and consistent with guidance. Top-line trends remain subdued, with FY26 Alex Sloane

+44 (0)20 3555 0645organic sales down ~3% and Q4 broadly consistent with the full-year run-rate, reflecting

alexander.sloane@barclays.com

ongoing demand weakness across regions. Pricing was a clear headwind (c.-2ppt), particularly

Barclays, UK

in Europe, driving a modest -30bps decline in EBITDA margin to 20.7%, albeit partially offset by

cost synergies and productivity delivery. Warren Ackerman

+44 (0)20 3134 1903

Below the line, adjusted EPS of 40.4p (-16%) reflects the combined impact of weaker trading warren.ackerman@barclays.com

and higher financing costs post the CP Kelco acquisition. Cash generation remains solid but Barclays, UK

slightly softer, with free cash flow of £164m (70% conversion) impacted by working capital Setu Sharda

outflows. Inventory build linked to bio-gums reconfiguration and tariff mitigation drove net debt + 91 (0)22 6175 1934

modestly above expectations at £939m (2.3x leverage), c.4% ahead of consensus.