Overall performance

 

Pro forma adjusted performance7,8 Including impact of CP Kelco acquisition from 1 April 2024				Adjusted performance8 Including CP Kelco from 15 November 2024
	2025	vs 2024			2025		vs 2024
Revenue	£2 124m	(3)%		Revenue	£1 736m	8%
Tate & Lyle	£1 512m	(5)%		Food & Beverage Solutions	£1 232m	(7)%
CP Kelco	£612m	3%		Sucralose	£193m	16%
				Tate & Lyle before acq'n	£1 512m	(5)%
				CP Kelco	£224m	n/a
EBITDA	£446m	5%		EBITDA	£381m	18%
Tate & Lyle	£338m	4%		Food & Beverage Solutions	£284m	2%
CP Kelco	£108m	9%		Sucralose	£60m	18%
				Tate & Lyle before acq'n	£338m	4%
				CP Kelco	£43m	n/a
Profit before tax	£263m	7%		Profit before tax	£270m	9%

 

Overview

Group revenue and adjusted EBITDA grew by 8% and 18%, respectively, reflecting the inclusion of CP Kelco from the completion of its acquisition on 15 November 2024.

 

On a pro forma basis, which assumes the Group acquired CP Kelco on 1 April 2024 (with comparatives similarly adjusted), Group revenue was 3% lower at £2,124 million and adjusted EBITDA was 5% higher at £446 million. Both Tate & Lyle and CP Kelco benefited from good volume growth, with revenue lower reflecting the pass-through of input cost deflation.  Adjusted EBITDA margin at 21% was 170bps higher with margin in Tate & Lyle and CP Kelco both benefiting from operational leverage and strong cost discipline. 

 

Excellent cash generation

Free cash flow, including the cash flows of CP Kelco since acquisition, was £20 million higher at £190 million. Cash conversion was 82%, ahead of our long-term target of 75%.  Net debt at 31 March 2025 was £961 million, an increase of £808 million mainly reflecting the cash paid to acquire CP Kelco, with reported leverage at 2.2 times⁷ net debt to EBITDA, better than expected when we announced the acquisition.

 

Strong productivity performance

We continue to make good progress against our five-year productivity target to 31 March 2028 of US$150 million savings (this target was increased from US$100 million in May 2024).  We delivered US$50 million savings in the year, with US$33 million from operational efficiencies and supply chain, and US$17 million from strong cost management and SG&A savings.  This brings total productivity savings in the last two years to US$91 million.

 

Exit of tapioca starch facility in Thailand

Following a strategic review of our tapioca starch facility in Thailand, Chaodee Modified Starch Co. Ltd., we have decided to exit this operation.  While tapioca starch remains a key mouthfeel ingredient in the Asian market, we have concluded that an alternate sourcing model will better support our long-term growth.  Accordingly, an exceptional charge of £59 million has been recognised in the year reflecting a non-cash impairment charge of £36 million and other costs of £23 million, mainly reflecting the provision for decommissioning costs.

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7.    Change compared to pro forma comparatives for the year ended 31 March 2024 included in 'Additional Information'.  Net debt to EBITDA ratio at 31 March 2025 is on a pro forma basis, as if CP Kelco was acquired on 1 April 2024.

8.    Revenue growth, adjusted EBITDA and adjusted EBITDA margin, adjusted earnings per share, free cash flow, return on capital employed (ROCE), net debt and net debt to EBITDA are non-GAAP measures (see pages 12 to 15). Changes in adjusted performance metrics are in constant currency and for continuing operations.

 

 

Food & Beverage Solutions

 

Region	Revenue			Revenue Drivers		Adjusted EBITDA
	Full-year		Change9	Volume	Price Mix	Full-year	Change9
North America	£605m	(4)%		2%	(6)%	-	-
Asia, Middle East, Africa and Latin America	£371m	(2)%		5%	(7)%	-	-
Europe	£256m	(18)%		2%	(20)%	-	-
Total	£1 232m	(7)%		3%	(10)%	£284m	2%

 

Revenue was 7% lower in constant currency at £1,232 million.  Volume was 3ppts higher reflecting our focus on growth, robust demand for sugar and calorie-reduced food with added nutrition, and the end of customer destocking.  Price mix decreased revenue by 10ppts, reflecting 6ppts from the pass-through of input cost deflation and 3ppts of mix as some customers reformulated to reduce cost, and 1ppt of price mainly in Europe. 

 

Looking across the three regions, overall consumer demand remained steady.

 

·  North America: Revenue was 4% lower.  We saw good volume gains in dairy, while demand in bakery remained soft.  Revenue was lower as input cost deflation was passed through to customers, with pricing, excluding the pass-through, slightly positive.  As the year progressed, consumer demand improved modestly despite food prices continuing to increase, particularly in out-of-home channels.

·   Asia, Middle East, Africa and Latin America: Revenue was 2% lower with strong volume growth offset by the pass-through of input cost deflation.  In Asia, China delivered high single-digit volume growth supported by good demand for fibre solutions, while volume was lower in south-east and north Asia.  Latin America saw high single-digit volume growth led by strong performance in southern Latin America.  In our smaller Middle East and Africa region, demand was strong in Turkey and the Middle East, more than offsetting weaker demand in north and west Africa.

·   Europe: Revenue was 18% lower, reflecting the pass-through of significant input cost deflation.  Across the recent inflation cycle, which saw double-digit inflation in the 2023 financial year, pricing has improved in the region.  Volume was slightly ahead, with robust demand for clean-label and fibre solutions.  We saw strong demand in beverages and bakery partially offset by weaker demand in dairy and infant nutrition.

 

Adjusted EBITDA was up 2% in constant currency at £284 million benefiting from higher volume, productivity savings and strong cost discipline.  The effect of currency translation decreased adjusted EBITDA by £4 million. Adjusted EBITDA margin was 23.1%, an increase of 200bps in constant currency, benefiting from the pass-through of input cost deflation.  In the last five financial years, adjusted EBITDA margin has increased by more than 500bps.

 

Innovation and solution selling

Investment	New Product Revenue			Solutions
Innovation and solution selling	Value	Growth9	% of FBS revenue	% of new business wins
US$80m (In line)	£216m	2%	18%	21%

 

New Product revenue was 2% higher.  On a like-for-like basis, which assumes the same ingredients are included in New Product revenue in both the current and comparative periods (i.e. no products are removed from disclosure due to age), New Product revenue was 9% higher.  On this like-for-like basis, revenue grew strongly in Asia and Latin America.    The fortification platform saw strong double-digit growth, reflecting demand for fibre fortified food and beverages, with encouraging demand for Quantum's portfolio in Asia.

 

Investment in innovation and customer-facing solution selling capabilities was in line with the prior year and has increased by US$11 million from three years ago, a compound annual growth rate of 5%.  Solutions new business wins by value were 21%, and our ambition is to increase this to 32% by 31 March 2028.

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9.    Growth in constant currency.

 

CP Kelco

From acquisition on 15 November 2024

 

Revenue	Adjusted EBITDA
£224m	£43m

 

In the four and a half months since the completion of the acquisition, CP Kelco performed well.  Strong pectin and steady speciality gums demand delivered revenue of £224 million.

 

Pro forma full-year ended 31 March 2025

 

Por forma revenue		Revenue Drivers		Pro forma adjusted EBITDA
Full-year	Change10	Volume	Price Mix	Full-year	Change10
£612m	3%	8%	(5)%	£108m	9%

 

On a pro forma basis for the full 2025 financial year, CP Kelco traded well and ahead of our expectations.  Revenue increased by 3%, driven by 8ppts higher volume which benefited from improved production efficiency.  Price mix decreased revenue by 5ppts, reflecting 2ppts of mix and 3ppts of price (including deflation impact). Revenue growth was led by double-digit increase in gellan gum as demand in Asia strengthened, while robust pectin demand in North America and Europe drove high single-digit revenue growth.  Revenue from citrus fibre, a recent innovation, grew significantly, while revenue from carrageenan was in line with the prior year, and xanthan gum was lower. 

 

Adjusted EBITDA increased by 9%, benefiting from increased operational leverage.  The opportunity to drive improvements in adjusted EBITDA margin was an important part of our acquisition plan.  It is therefore encouraging that pro forma adjusted EBITDA margin increased by 100bps¹⁰ to 17.6%, ahead of our plan, with this improvement momentum further reinforcing our confidence in its phased margin recovery.  Currency translation decreased adjusted EBITDA by £3 million.

 

Sucralose

 

Revenue		Revenue Drivers		Adjusted EBITDA
Full-year	Change11	Volume	Price Mix	Full-year	Change11
£193m	16%	16%	-%	£60m	18%

 

Underlying customer demand for Sucralose remained steady.  Sucralose revenue increased by 16% driven by robust customer orders and the benefit of productivity-driven gains at our facility in Alabama, US.  Adjusted EBITDA increased by 18% to £60 million, with margins positively impacted by lower input costs.  Currency translation decreased adjusted EBITDA by £1 million.

 

Primary Products Europe

 

Revenue		Revenue Drivers		Adjusted EBITDA
Full-year	Change11	Volume	Price Mix	Full-year	Change11
£87m	(21)%	5%	(26)%	£(6)m	(20)%

 

We continue to optimise the financial performance of Primary Products Europe through the transition of capacity to speciality ingredients. Revenue was lower with significantly lower pricing across sweeteners and co-products.  This was partially offset by higher co-product volume. Adjusted EBITDA losses were slightly higher, supported by lower input costs especially for corn.

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10.  Change in constant currency compared to pro forma comparatives for the year ended 31 March 2024 included in 'Additional Information'.  Comparative is restated pro forma adjusted EBITDA (see 'Additional Information').

11.  Change in constant currency.

	Commentary on the financial statements

 

 

 

 

 

Year ended 31 March Continuing operations (including CP Kelco from 15 November 2024)	2025  £m	2024  £m	Constant  currency  change   %
Revenue
Food & Beverage Solutions	1 232	1 359	(7)%
CP Kelco	224	-	n/a
Sucralose	193	174	16%
Primary Products Europe	87	114	(21)%
Revenue	1 736	1 647	8%
Adjusted EBITDA
Food & Beverage Solutions	284	281	2%
CP Kelco	43	-	n/a
Sucralose	60	52	18%
Primary Products Europe	(6)	(5)	(20)%
Adjusted EBITDA	381	328	18%
Adjusted depreciation and adjusted amortisation	(93)	(70)	(36)%
Adjusted operating profit	288	258	13%
Net finance expense	(18)	(6)	>(99)%
Adjusted profit before tax - continuing operations	270	252	9%
Adjusted profit before tax - discontinued operations	9	35	(72)%
Adjusted profit before tax - total operations	279	287	(1)%
Profit before tax (statutory) - (continuing operations)1	88	201	(56)%

1.  Percentage change in statutory profit before tax is reported change

 

Net finance expense

 

Higher net finance expense at £18 million reflected the increase in borrowings following the completion of the acquisition of CP Kelco on 15 November 2024. 

 

Exceptional items

 

Exceptional charges on continuing operations of £96 million were included in profit before tax.  This included £59 million related to the decision to exit the Group's tapioca starch facility in Thailand, Chaodee Modified Starch Co., Ltd., £24 million of integration costs and £13 million related to restructuring costs.  Exceptional cash outflows on continuing operations totalled £31 million.  (For more information see Note 5).

 

Taxation

 

The adjusted effective tax rate on continuing operations was 22.6% (2024 - 21.1%).  The increase in the effective rate relates mainly to the inclusion of CP Kelco from acquisition which has a higher effective rate principally as its operations are located in higher rate jurisdictions.

 

Looking ahead, reflecting a full year's impact from CP Kelco, we expect the adjusted effective tax rate for the combined business for the year ending 31 March 2026 to be between 23% and 25%.

 

The reported effective tax rate (on statutory earnings) was 48.4% (2024 - 19.9%). The higher effective rate in the year related to certain exceptional items and acquisition costs which were not tax deductible.

 

Discontinued operations: Adjusted share of profit of Primient joint venture

 

The Group's remaining interest in Primient was disposed on 27 June 2024. For the period before disposal the adjusted share of joint venture profit was £9 million, 72% lower than the prior year.  The exceptional post-tax gain on disposal from Primient was £85 million.

 

Earnings per share

 

For continuing operations, adjusted earnings per share at 50.3p were 4% higher (in constant currency).  This increase reflects higher profits after tax, mitigated by a higher weighted number of shares in issue following the issue of shares to acquire CP Kelco.  Statutory diluted earnings per share for total operations decreased to 34.5p (2024 - 46.5p), reflecting stronger operating performance and the profit on the disposal of Primient, more than offset by higher exceptional costs and a higher weighted number of shares in issue.

 

Return on capital employed (ROCE)

 

ROCE at 12.8% (2024 - 17.4%) was lower reflecting the impact of the acquisition of CP Kelco part way through the year. ROCE increased by 180bps on an organic basis.

 

Dividend

 

The Board is recommending a final dividend of 13.4p (2024 - 12.9p) per share. This brings the full year dividend to 19.8p (2024 - 19.1p), an increase of 3.7%.  Subject to shareholder approval, the proposed final dividend will be due and payable on 1 August 2025 to all shareholders on the Register of Members on 20 June 2025. In addition to the cash dividend option, shareholders will continue to be offered a Dividend Reinvestment Plan alternative.

 

Cash flow, net debt and liquidity

	2025  £m	2024 £m
Adjusted free cash flow	190	170
Net debt at 31 March	(961)	(153)
Net debt to EBITDA ratio13 at 31 March	2.2x	0.5x

 

Free cash flow, including the cash flows of CP Kelco from acquisition, increased to £190 million, reflecting cash conversion of 82%¹².  This reflected both higher profits and a strong focus on cash generation.  Investments in infrastructure, capacity and technology drove capital expenditure to £121 million, £11 million higher.

 

Looking ahead, we expect capital expenditure for the year ending 31 March 2026 to be in the £120 million to £140 million range.

On 27 June 2024, the Group completed the sale of its remaining stake in Primient and received cash proceeds of US$350 million (£277 million) (before transaction costs and tax).  The net cash proceeds from the sale were returned to shareholders through a £216 million share buyback programme, which was completed in January 2025. Tax paid in respect of Primient (which is not included in free cash flow) was £50 million.

 

On 15 November 2024 the Group completed the acquisition of CP Kelco for total consideration of US$1.8 billion (c.£1.4 billion), of which £807 million was settled in cash (net of cash acquired) from new and existing debt facilities and cash resources.  At completion the Group entered a €275 million term loan and a US$600 million bridge facility.  The bridge facility was refinanced into debt with longer term maturities on 12 March 2025 through a multi-tranche debt offering of US$300 million and €275 million private placement notes.

 

Net debt at 31 March 2025 was £961 million, an increase of £808 million mainly reflecting the acquisition of CP Kelco.

Reported leverage at 31 March 2025 was 2.2 times¹³ net debt to EBITDA.  On a covenant testing basis, the net debt to EBITDA ratio was 2.3 times.  At this level it remains well below the net leverage covenant threshold of 3.5 times.  We have strong liquidity headroom with access to £1.0 billion through cash on hand and a US$800 million committed and undrawn revolving credit facility.

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12.  Free cash conversion calculated as: free cash flow before capital expenditure divided by adjusted EBITDA.

13. Net debt to EBITDA ratio at 31 March 2025 is on a pro forma basis, as if CP Kelco was acquired on 1 April 2024.

	Non-GAAP measures

Some performance discussion and narrative in this announcement includes measures which are not defined by generally accepted accounting principles (GAAP) such as IFRS.  The Group believes this information, together with comparable GAAP measures, is useful to investors in providing a basis for measuring our operating performance, cash generation and financial strength.  The Group uses these alternative performance measures for internal performance analysis and incentive compensation arrangements for employees.  These measures are not defined terms and may therefore not be comparable with similarly-titled measures reported by other companies.  Wherever appropriate and practical, reconciliations are provided to relevant GAAP measures.

Alternative performance measures are used for and refer to continuing operations only.

The Group uses constant currency percentages and movements, using constant exchange rates which exclude the impact of fluctuations in foreign currency exchange rates.  We calculate constant currency values by retranslating current year results at prior year exchange rates into pound sterling.  The average and closing US dollar and Euro exchange rates used to translate reported results were as follows:

 

	Average rates		Closing rates
Year ended 31 March	2025	2024	2025	2024
US dollar : sterling	1.28	1.26	1.29	1.26
Euro : sterling	1.19	1.16	1.19	1.17

 

Items adjusted in alternative performance income statement measures (Adjustment items)

 

Several alternative performance measures are adjusted to exclude items due to their size, nature and / or frequency of occurrence. 

1.  Adjusted items excluded from earnings before interest, tax, depreciation and amortisation (adjusted EBITDA) are: exceptional items (as they are material in amount; and are outside the normal course of business or relate to events which do not frequently recur), amortisation of acquired intangible assets, the unwind of fair value adjustments and other M&A costs.

2.  Additional adjusted items excluded from adjusted profit after tax are: tax on the above items and tax items that themselves are exceptional as they meet these definitions.  For tax items to be treated as exceptional, amounts must be material and their treatment as exceptional enable a better understanding of the Group's underlying financial performance. 

 

Income statement measures

 

Adjusted revenue change

 

Adjusted revenue growth refers to the change in revenue for the period, in constant currency.  This is analysed between the drivers of revenue growth attributable to:

 

1.  Volume - this means, for the applicable period, the change in revenue in the period attributable to volume excluding those related to the re-positioning of the Food & Beverage Solutions business through a focus on mix management and margin expansion.

2.  Price mix - this means, for the applicable period, the change in revenue in such period calculated as the sum of i) the change in revenue attributable to changes in prices during the period; and ii) the change in revenue attributable to the composition of revenue in the period, including the volume effect of the impact of the re-positioning of the Food & Beverage Solutions business through a focus on mix management and margin expansion.

 

In the narrative where acquisitions are referred to in explaining revenue growth, this means changes in revenue resulting from acquisitions.

Adjusted EBITDA

 

Adjusted EBITDA is used as the Group's primary profit measure for internal performance analysis.  Adjusted EBITDA is calculated as follows:

 

Year ended 31 March		2025  £m	2024  £m
Operating profit		106	207
Depreciation		86	58
Amortisation		42	36
Unwind of fair value adjustments		14	1
Exceptional items		96	24
Other M&A activity-related items		37	2
Adjusted EBITDA		381	328
Revenue		1 736	1 647
Adjusted EBITDA margin		21.9%	19.9%

 

Adjusted earnings per share

 

Adjusted earnings per share (adjusted EPS) is calculated as the adjusted profit for continuing operations attributable to shareholders' equity divided by the diluted average number of ordinary shares.  In calculating adjusted profit attributable to shareholders' equity, net profit attributable to shareholders' equity is adjusted to eliminate the post-tax impact of all excluded adjustment items. Refer to Note 8 for reconciliation of net profit attributable to shareholders' equity to adjusted profit attributable to shareholders equity.

 

Change in adjusted earnings per share is shown in constant currency.

 

Cash flow measure

The Group also presents an alternative cash flow measure, 'free cash flow' which is defined as cash generated from operating activities after net capital expenditure, net interest and tax payments, and excludes the impact of exceptional items, tax payments on behalf of Primient and the impact of acquisitions and disposals.  Free cash flow reflects an additional way of viewing our liquidity, which we believe is useful to our investors.  We also use free cash conversion as a metric for how we convert profit into cash, which is calculated as: free cash flow before capital expenditure divided by adjusted EBITDA

The reconciliation of net cash flow from operating activities to free cash flow is as follows:

Year ended 31 March	2025  £m	2024 £m
Net cash flow from operating activities	164	208
Capital expenditure (net)	(121)	(110)
Tax paid in respect of Primient partnership	5	12
Exceptional cash flows1	76	39
Other M&A activity-related items	45	2
Interest received	21	19
Free cash flow	190	170

1. Includes exceptional cash flow of £31 million (2024 - £27 million) and tax paid in relation to gain on disposal of Primient of £45 million (2024 - £12 million).

 

Year ended 31 March	2025  £m	2024 £m
Adjusted EBITDA	381	328
Adjusted for
Changes in working capital	8	7
Capital expenditure (net)	(121)	(110)
Net retirement benefit obligations	(7)	(7)
Net interest and tax paid	(78)	(57)
Share-based payment charge	12	13
Other non-cash movements	(5)	(4)
Free cash flow	190	170

 

Financial strength measures

 

The Group uses three financial metrics as key performance measures to assess its financial strength. These are net debt, the net debt to EBITDA ratio and the return on capital employed ratio. For the purposes of KPI reporting, the Group uses a simplified calculation of these KPIs to make them more directly related to information in the Group's financial statements.

 

All ratios are calculated based on unrounded figures in £ million.

 

Net debt

Net debt is a measure that provides valuable additional information on the summary presentation of the Group's net financial liabilities.  Net debt is defined as the excess of borrowings and lease liabilities over cash and cash equivalents.

The components of the Group's net debt are as follows:

	At 31 March 2025  £m	At 31 March 2024  £m
Borrowings	(1 240)	(544)
Lease liabilities	(66)	(46)
Cash and cash equivalents	334	437
Loan receivable	11	-
Net debt	(961)	(153)

 

Net debt to EBITDA ratio

 

The net debt to EBITDA ratio shows how well a company can cover its debts if net debt and EBITDA are held constant.

 

The net debt to EBITDA ratio is as follows:

 

	Pro forma at 31 March 2025 £m	At 31 March 2024  £m
Calculation of net debt to EBITDA ratio
Net debt	961	153
Adjusted EBITDA	446	328
Net debt to EBITDA ratio (times)	2.2	0.5

Return on capital employed (ROCE)

 

Return on capital employed (ROCE) is a measure of the return generated on capital invested by the Group.  The measure encourages compounding reinvestment within business and discipline around acquisitions, as such it provides a guardrail for long-term value creation.  ROCE is a component of the Group's five-year performance ambition to 31 March 2028 and is used in incentive compensation.

 

ROCE is calculated as underlying operating profit excluding exceptional items and M&A related costs, divided by the average invested operating capital (calculated as the average for each month of goodwill, intangible assets, property, plant and equipment, working capital, provisions and non-debt related derivatives). As such the average invested operating capital is derived from the management balance sheet and does not reconcile directly to the statutory balance sheet.  All elements of average invested operating capital are calculated in accordance with IFRS.

 

	31 March	31 March
	2025	2024
Twelve months ended	£m	£m
Adjusted EBITDA	381	328
Deduct:
Depreciation	(86)	(58)
Amortisation	(42)	(36)
Unwind of fair value adjustments	(14)	(1)
Profit before interest, tax and exceptional items for ROCE	239	233
Average invested operating capital	1 872	1 343
ROCE %	12.8%	17.4%

	Changes to the Board of Directors

  The following changes were made to the Board of Directors during the year:

 

·   Sarah Kuijlaars was appointed as Chief Financial Officer and to the Board of Directors from 16 September 2024. She replaced Dawn Allen, who resigned from the Board and as Chief Financial Officer with effect from 15 September 2024.

·   Sybella Stanley, a non-executive director and Chair of the Remuneration Committee, retired from the Board on 31 December 2024 as planned after nine years of service.

·  Jeff Carr joined the Board as a non-executive director on 1 April 2024. He became Chair of the Remuneration Committee from 1 January 2025.

·   Glenn M. Fish and Cláudia Vaz de Lestapis were appointed as non-executive directors from 15 November 2024, as representatives of J.M. Huber Corporation in accordance with the terms of the acquisition of
CP Kelco.

·   Patricia Corsi resigned from the Board from 31 March 2025 due to her increased executive responsibilities elsewhere.

 

In addition, as previously announced:

 

·    Lars Frederiksen will leave the Board after the AGM on 24 July 2025 as planned after nine years of service.

·   Steve Foots will become a non-executive director following the AGM on 24 July 2025, subject to his election at the AGM.

CONSOLIDATED INCOME STATEMENT

 

				Year ended 31 March
		Notes		2025  £m		Restated* 2024  £m
Continuing operations Revenue		4		1 736		1 647
Operating profit				106		207
Finance income				20		19
Finance expense				(38)		(25)
Profit before tax				88		201
Income tax expense		6		(43)		(41)
Profit for the year - continuing operations				45		160
Profit for the year - discontinued operations				95		28
Profit for the year - total operations				140		188
Attributable to:
Owners of the Company				143		188
Non-controlling interests				(3)		-
Profit for the year - total operations				140		188
Earnings per share				Pence		Pence
Continuing operations:		8
-  basic				11.8p		40.5p
-  diluted				11.6p		39.8p
Total operations:		8
-  basic				35.0p		47.3p
-  diluted				34.5p		46.5p

 

*    Prior year comparatives restated for discontinued operations. See Notes 2 and 7.