Ingredients maker Tate & Lyle said revenues and trading for the three months to 31 March were in line with both expectations and the outlook included in its February trading statement.
The FTSE 250 company, which issued three separate profit warnings across 2014 and 2015, revealed in February that profit before tax on constant currency basis was expected to be "broadly in line with that of the 2015 financial year at £193m ($274m)" but "modestly below this figure".
The company added it forecasts to make a loss in its commodities business to the ongoing weakness in the price of ethanol in the US, while volumes in the food system division continued to grow steadily in the quarter to the end of March.
However, the London-listed company did not offer any comments over the forthcoming levy on sugar drinks, which was unveiled by Chancellor George Osborne during his Budget Speech on 16 March. The tax, which will come into effect in 2018, will be divided in two bands, one focusing on drinks with more than 5g of sugar per 100ml and one on drinks with more than 8g per 100ml. The levy will be imposed on to manufacturers, who can then can choose if they want to pass the price increase on to consumers, however, the smallest producers will have an exemption from the scheme.
Tate & Lyle, along with a number of soft-drinks producers, was immediately under pressure following the chancellor's announcement and saw its shares plunge 5% on the day. However, the maker of Splenda sucralose sweeteners has since steadied the ship as its stock has gained 8.5% from 16 March.