In a trading update, the Irn-Bru maker said that the £37m profit before tax expectation is at the top end of current market expectations.

AG Barr’s revenue for the financial year ended 25 January 2020 is expected to be c. £1255m, a drop £25m drop from £279, in 2018.

The company said: “As previously communicated, we faced a combination of challenging trading conditions during the year, particularly across the summer period. In addition, following our 2018 volume-led strategy, across 2019 we adjusted our promotional and pricing position to align more closely with the market.

“While this had an expected impact on volume, it has delivered an increase in average realised price, re-establishing our consumer pricing position.

AG Barr said that it Rockstar and Rubicon recover plans are now being implemented, whilst Irn-Bru has returned to growth in the final quarter and Funkin continued to perform strongly.

The trading update also stated: “Our business remains strongly cash generative and, as planned, our £30m share repurchase programme completed during the period. Our balance sheet remains robust.

“The external landscape remains challenging, however, we exit the year with encouraging trading momentum which we expect to continue into 2020.”

Commenting on the results, Roger White, chief executive, said: “Our focus remains the delivery of long-term value growth. We are taking action to reset our business and we enter the new financial year with confidence and a strong trading plan.”

John Moore, senior investment manager at Brewin Dolphin, commented: “Today’s update from AG Barr should provide further reassurance to investors who were spooked by last year’s profits warning. The normally reliable company is contending with a challenging market, including tough comparators, the sugar tax, and unfavourable weather over the past year or so – but it is still managing to deliver, assisted by a very strong balance sheet.

“The turnaround plans for its Rockstar and Rubicon brands are positive moves, as is the business re-engineering programme. There is also a bullishness to this latest statement from AG Barr – underlined by the expectation that profits will come in at the top end of guidance – that suggests last year could be a temporary blip and the company is back on track.”

A.G. Barr intends to announce its full-year financial results on 24 March 2020.