Tate & Lyle PLC (LSE:TATE) shares rose 4% to 393.6p after the ingredients group reported solid progress integrating CP Kelco, its major 2024 acquisition, despite softer market conditions in North America.
For the six months to 30 September 2025, revenue dipped 3% to £1.02 billion on a pro forma basis, reflecting weaker consumer demand. Adjusted EBITDA fell 6% to £215 million, with margins easing to 21%.
Still, the FTSE 250 group generated healthy free cash flow of £98 million and announced a 6.6p interim dividend, up 0.2p.
CEO Nick Hampton said the company was “ahead of plan” on delivery of synergies from the Kelco deal, with cost savings now expected to exceed the US$50 million target by 2027.
Revenue synergies of up to US$70 million are also on track, underpinned by a doubled cross-selling pipeline and growing demand for healthier, more nutritious foods.
Tate & Lyle is accelerating investment in innovation and customer engagement, including AI-powered tools to speed up product development.
While near-term trading remains challenging, investors appear encouraged by steady progress and improving growth prospects for the combined business.