British tonic maker Fevertree Drinks has today posted an annual profit in line with estimates, buoyed by a robust performance of its US market and increased regional production to offset inflationary pressures due to elevated glass-making costs.
The company, which was founded in 2003, had struggled with rising glass costs in Britain due to energy price hikes following the Russia-Ukraine conflict.
This led to Fevertree Drinks raising its prices and boost US glass production, helping it overcome the cost pressures. Its new glass contracts and lower Trans-Atlantic freight rates are expected to help profit growth in 2024.
The company, which sells most of its drink mixers in glass bottles, said today its adjusted core profit was at about £30.5m for the full year ended December 31, meeting a company provided analysts' consensus of £30m.
It said in a statement that the New Year has been in-line with its expectations so far, encouraging the company to reiterate its forecasts for the year.
Separately, Irn-Bru maker AG Barr's reported profit before tax of £51.3m for the year ended January 28, beating analyst expectations of £48.84m, on price hikes and strong demand for its cocktail mixes and soft drinks.
