British tonic maker Fever-Tree Drinks Plc said on Wednesday it plans to hike product prices and ramp up its US production to help cushion the pressures faced from high costs of manufacturing glass.
Energy and commodity prices have increased since Russia invaded Ukraine last year, sending companies across the globe scrambling for ways to rein in costs, while households struggle to manage their bills.
"As we navigate these challenging conditions ... passing through some of these impacts through price across our regions, while focusing on our own margin improvement initiatives," the company said in a statement.
The 20-year old company reported a 37% fall in its adjusted core profit to £39.7 million ($48.66 million) for the year ended 31 December.
Revenue was 11% above the previous year's levels at £344.3 million, in line with analysts' expectations.
In January, the London-based mixers firm forecasted a rise in its 2023 revenue as it expected its business to continue expanding in the United States and a return to growth in its established market in the UK.
"Looking ahead to 2023, we remain very confident in delivering strong top line growth, most notably in the US," commented Tim Warrilow, chief executive.
"Whilst the initiatives we are implementing would have driven margin improvement during the year, the energy related cost increases, which are particularly acute across the glass industry, mean we expect to deliver absolute EBITDA in-line with 2022."
Read More: Fever-Tree Expects 2023 Revenue To Jump
News by Reuters edited by Donna Ahern, Checkout. For more drinks stories click here. Click subscribe to sign up for the Checkout print edition.