Tate & Lyle issued a profit warning ahead of its first-half fiscal 2026 results, anticipating revenue and EBITDA declines due to weaker market demand. Shares dropped 10% in early trading. Revenue expected to decline by 3-4% in the first half, with EBITDA decreasing by a high single digit. Full-year outlook also revised downward.

Consumer confidence issues, tariffs, and inflation concerns have led to weak demand, impacting Tate & Lyle’s performance. Revenue and EBITDA expected to decline by a low single-digit percentage for the full year. Management’s outlook has worsened since May, with revenue and EBITDA now projected to decrease compared to the prior year.

Fair value estimate for Tate & Lyle reduced by 10% to GBX 725, reflecting near-term weakness. Fiscal 2026 constant-currency pro forma revenue growth estimate lowered to negative 2.8%. Shares currently undervalued due to short-term demand weakness and pricing pressure, but long-term potential remains strong with regulatory pressure for reformulation and healthier diets.

Read more at Morningstar: Shares Tumble As Demand Softness Drives Sharp Downgrade to Full-Year Guidance