Tonic maker Fevertree Drinks has posted an annual profit in line with estimates, helped by a strong performance in the US market, it was reported today.
The British company was also buoyed by increased regional production to offset inflationary pressures caused by elevated glass-making costs.
It has struggled with the rising cost of glass in the UK, which was caused by energy price hikes due to the Russia-Ukraine conflict.
To combat increased production costs, Fevertree raised its prices and boosted glass production in the United States.
The new glass contracts and lower Trans-Atlantic freight rates are expected to help increase profits this year.
The London-based company, which sells most of its products in glass bottles, said on Tuesday that adjusted core profit was at £30.5 million for the year ending 31 December.
This report was in line with analysts’ predictions of £30 million.
The drinks company earlier this year lowered its core profit expectations from £36 million to £30 million based on increased glass production costs.
Fevertree said in a statement that 2024 has been in line with expectations so far, which encouraged the company to reiterate its forecasts for the year.
Separately, the maker of Irn-Bru A.G. Barr reported a pre-tax profit of £51.3 million for the year ending on 28 January.
This beat analysts’ expectations of £48.84 million, helped by price hikes and strong demand for its cocktail mixes and soft drinks.
Earlier this month, A.G. Barr announced that 195 jobs were to be cut in a planned reorganisation of the business.
Read More: Fevertree Drinks Predicts Annual Core Profit Falling Short Of Expectations
