Food And Beverage
Tonic maker Fevertree reported a dip in profit for the first half of the year 2022 despite tremendous demand in Europe and the US, as increased inflationary pressures and continued exposures to Trans-Atlantic freight costs showed their effect on the earnings.
The London-based tonic maker also said availability of glass will be restricted in the second half of the year 2022 and is expected to hurt revenue.
Fevertree said labor shortages at its East Coast bottler in the US had impacted its ramp-up.
The tonic maker said it was working with suppliers to secure its glass requirements for 2023.
The company added the labor shortages have resulted in greater production volumes required from the UK, which has increased the group’s exposure to sea freight costs “in the short term.”
Fevertree reiterated it expects full-year core profit to be within the range of 37.5 million pounds ($43.94 million) to 45 million pounds.
The Tonic maker said uncertainty and the risk of disruption for the year remain high as cost pressures continue to impact its business.
The London-based firm said its adjusted core profit for the six months ended June 30 2022 was 21.9 million pounds, compared with 29.2 million pounds the previous year.