Tate & Lyle cuts forecast, raises dividend despite market slowdown

Tate & Lyle PLC cut its full-year forecast, citing a slowdown in market demand, but said on Thursday it would raise its interim dividend.

The food ingredients supplier now expects revenue and earnings before interest, taxes, depreciation, and amortization for the year ending March 31, 2026, to decline by a low-single-digit percentage, according to a recent company statement.

For the first half of the year, the company said it anticipates group revenue to be 3% to 4% lower.

"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.

The weaker outlook follows the company's recent combination with CP Kelco, though Tate & Lyle said planned synergies from the deal remain on track.

Despite the forecast cut, the board approved an interim dividend of 6.6 pence per share for the six months to Sept. 30, an increase from 6.4 pence a year earlier.

The dividend will be paid on Jan. 5, 2026, to shareholders of record as of Nov. 21, 2025.