Upscale beverage company Fevertree was hit by global supply chain bottlenecks and shipping costs in the first half of the year, slashing profits even as business in Europe and the United States. United States has rebounded from the depths of the pandemic.
Revenues from the company, best known for making high-end tonic waters and cocktail mixers, have been held back by higher costs for storage of goods in the United States and transatlantic freight, Fevertree said in his half-yearly results report Wednesday.
âWe expect disruption and high logistics costs to continue to impact the remainder of this fiscal year and into 2022,â the company said.
The group’s shares rose 3% at the start of the London session on Wednesday, reducing their decline this year to 13%.
Fevertree’s gross margins fell 2.7 percentage points in the six months to June 30, while adjusted profit before interest, taxes, depreciation and amortization rose 23% to Â£ 29.2million compared to the previous year.
Businesses around the world have faced record shipping costs and supply chain disruptions as major economies reopen after pandemic lockdowns.
The group reiterated its July forecast, forecasting full-year sales of Â£ 295million to Â£ 304million, and recommends an interim dividend of 5.52 per year, up 2% from a year ago is one year old.
Sales increased in all of its key markets, pushing the total up 36% to Â£ 141.8million, driven by a recovering Europe where revenues doubled.
Non-commerce sales, aided by lockdowns and people drinking at home rather than in bars, exceeded his expectations and remained above pre-pandemic levels. Retail sales, which refers to doing business with hotels, bars and restaurants rather than supermarkets, performed well as outlets began to reopen and recover in the second quarter.
âWhile some material impacts of the pandemic remain, the company is increasingly well positioned to deliver on our long-term growth plans,â said Managing Director Tim Warrillow.