(Adds shares, CEO comment, details, background)
May 4 (Reuters) - British food ingredients maker Tate & Lyle
on Monday said U.S. demand for its sugars and syrups
used by restaurants, cinemas and other public facilities fell in
April as thousands of businesses remained closed by coronavirus
lockdowns.
The company said it expected to report results slightly
ahead of its forecast for the year ended March 31, as it was not
significantly hit by the pandemic in March.
But shares fell as much as 3% in early trading as it warned
of more impact in April, with "bulk sweetener" volume down 26%,
while demand for ingredients used in packaged food rose as
consumers stocked up on essentials.
"All our manufacturing facilities have remained fully
operational during the pandemic and customer orders have
continued to be fulfilled," Chief Executive Officer Nick Hampton
said.
Tate & Lyle has invested heavily in speciality food
ingredients like artificial sweeteners and other products
including starch, which carry higher margins than its
traditional base in large-scale sugar production.
The company, which traces its roots back to a sugar business
in 1859, said, however, that industrial starch volume was also
9% lower in April as the closure of offices and schools reduced
demand for paper and packaging.
The financial impact of lower demand was partially mitigated
by cost-cutting actions taken in March including freezing salary
increases and recruitment, stopping non-essential discretionary
spend and reprioritising capital commitments, the company said.
Shares in the company were down 2.4% at 678.8 pence by 0712
GMT.
(Reporting by Pushkala Aripaka and Tanishaa Nadkar in
Bengaluru; Editing by Anil D'Silva and Patrick Graham)