Food ingredients supplier Tate & Lyle (LON:TATE) stayed on track to hit annual targets but said falling commodity prices had taken their toll.
Tate said it was still on course to achieve full-year guidance following trading in the three months to the end of December.
The company said volumes of its Splenda sucralose were ahead of the same time a year ago although, as expected, pricing was lower year-on-year.
Volumes in its speciality food ingredient business were ahead of last year as strong volume growth in Europe and Asia Pacific more than offset softer demand in North America and Latin America.
But falling prices continued to affect its commodities business, which it said was now likely to make a small annual loss.
Margins in its food systems arm declined as a result of a sharp increase in certain ingredient costs.
In bulk ingredients, North American sweetener volume in the quarter was slightly ahead of the comparative period and the bulk sweetener pricing round should modestly boost margins in the fourth quarter.
The group’s adjusted pre-tax profit from continuing operations in constant currency is expected to broadly match the 2015 financial year at £193mln. On a reported basis it is set to fall slightly short of that figure.
It said the longer-term outlook for the business remained positive.
Chief executive Javed Ahmed said: "While in the near term we expect weakness in commodity markets to persist, we will continue to target stable earnings from core bulk Ingredients and to manage commodities to dampen volatility." Shares in the group fell 45p to 536.5p.