Tonic maker Fevertree reported a drop in profits for the first half of the year, despite strong demand in Europe and the U.S., because inflationary pressures and continued exposure to trans-Atlantic freight costs hurt earnings.
The London company also said that there will be less glass available in the second half of the year, which is expected to hurt sales.
“The lack of workers at our U.S. East Coast bottler has slowed us down,” Fevertree said.
The company said it was working with its suppliers to make sure it would have enough glass in 2023.
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It is also said that the lack of workers has meant that more production needs to come from the UK. This has increased the group’s “short-term” exposure to sea freight costs.
Fevertree said again that it thinks its core profit for the whole year will be between 37.5 million pounds and 45 million pounds.
As cost pressures continue to affect its business, the group said there is still a lot of uncertainty and a high chance that something will go wrong this year.
The London-based company said that its adjusted core profit for the six months that ended on June 30 was 21.9 million pounds, down from 29.2 million pounds the year before.
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