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Tate & Lyle has reported 'disappointing' first-half results for the six months ending 30 September 2025, as market demand weakened across key regions, particularly North America.

However, the global ingredients supplier said its newly combined business with CP Kelco is driving strong customer engagement and building a significantly expanded pipeline of growth opportunities.

Group revenue declined 3% to £1.024bn, reflecting lower volumes and pricing pressures across several markets. Despite near-term economic headwinds, Tate & Lyle highlighted strong early traction from the CP Kelco combination, which officially began operating as a single business on 1 April 2025.

Customer interest has been driven by the combined company’s expanded portfolio across sweetening, mouthfeel and fortification solutions, something Tate & Lyle said is increasingly in demand as food and beverage manufacturers reformulate for health, nutrition and sustainability.

To accelerate top-line growth, Tate & Lyle announced a number of targeted investments across customer-facing and technical teams.

These included expanding its applications, sensory, nutrition science and process development teams; faster rollout of its 'mouthfeel solutions chassis,' with ten already launched and ten more in development; and approximately £8 million in new digital and AI-driven tools, including a generative AI platform to improve technical and scientific insights.

The company said it will 'accelerate productivity' across the entire group, with its five-year productivity savings target to 31 March 2028 increased by $50 million to $200 million.

The Americas region, which generates half of Tate & Lyle’s revenue, reported a 2% decline, with the beverage, bakery and snacks categories in North America being particularly affected.

Revenue in Europe, the Middle East and Africa dropped 6%, driven by lower pricing under renewed customer agreements and ongoing softness in the bakery and snacks category. Bulk sweetener pricing was also pressured by declining European sugar markets.

Asia Pacific remained stable, with growth in China and North Asia offsetting tariff-related headwinds. Adjusted EBITDA in the region climbed 19% thanks to cost efficiencies.

Nick Hampton, CEO, emphasised the long-term opportunity despite current pressures. He commented: “With our growing pipeline of new business opportunities, the power of the combination is clear. Our focus is on execution, delivering for our customers and growth.”