British tonic maker Fevertree Drinks has today trimmed its annual profit forecast after its first-half earnings halved, as elevated glass manufacturing costs squeeze margins despite price increases.
The London-based company has been grappling with spiralling costs and shortages of glass bottles in Britain that have been compounded by the Russia-Ukraine war, forcing it to increase product prices to protect margins.
Fevertree sells most of its drink mixers in glass bottles.
It said it now expects its core profit to be around £30-36m for the 2023 fiscal year, compared with its previous forecast of £36-42m.
The company posted a 54% fall in its adjusted core profit to £10.2m for the six months ended June 30.
