Fevertree’s annual profit in line with forecasts thanks to robust performance in the US, reports Reuters

Fevertree’s annual profit in line with forecasts thanks to robust performance in the US, reports Reuters

© Reuters. FILE PHOTO: Fever Tree products on display at a store in London, Britain March 19, 2023. REUTERS/Henry Nicholls/File Photo

(Reuters) – British tonic maker Fevertree Drinks reported full-year profit in line with estimates, supported by a strong performance in its U.S. market and an increase in regional production to offset inflationary pressures from high glass manufacturing costs.

The company, founded in 2003, was facing rising glass prices in Britain due to rising energy prices following the Russian-Ukrainian conflict.

This led Fevertree Drinks to raise prices and boost glass production in the United States, helping it overcome cost pressure. Its new glass contracts and lower transatlantic freight rates are expected to contribute to profit growth in 2024.

The London-based company, which sells most of its drink mixers in glass bottles, said on Tuesday its adjusted core profit was about 30.5 million pounds ($38.59 million) for the The financial year ended December 31, meeting an analyst consensus. of 30 million pounds.

It said in a statement that the new year had so far been in line with its expectations, encouraging the company to reiterate its guidance for the year.

Separately, Irn-Bru AG maker Barr’s reported pre-tax profit of 51.3 million pounds for the year ended January 28, beating analysts’ expectations of 48.84 million pounds, due to rising prices and strong demand for its cocktail mixes and soft drinks.

($1 = 0.7905 pounds)

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