Tate & Lyle PLC (LSE:TATE) shares fell 9.5% after the ingredients company warned that softer market demand is set to reduce revenue and profit for the first half of its financial year.
The group said first-half revenue is expected to be 3-4% lower in constant currency compared with pro forma comparatives, with EBITDA down by a high single-digit percentage.
For the year ending 31 March 2026, the company now expects revenue and EBITDA to decline by a low-single digit percent compared to the prior year.
In a pre-close statement ahead of results for the six months to 30 September 2025, the FTSE 250-listed company said it has seen a slowdown in demand, particularly over the past two months.
This affected performance in the Americas and Europe, Middle East and Africa, while revenue in Asia Pacific is expected to be broadly in line after absorbing the impact of tariffs.
Despite this, strong customer interest was reported following its CP Kelco acquisition, with early cross-selling successes and its pipeline doubling in value in the past two months.
“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,” chief executive Nick Hampton said.
"Against this challenging backdrop, we are accelerating a series of steps to drive delivery of top-line growth."
He said the group is accelerating investment in customer segmentation, applications and marketing to support innovation and optimise its manufacturing network.