Adds results details, background
September 15 (Reuters) – British tonic manufacturer Fevertree Drinks FEB.L reported higher half-yearly profits on Wednesday, but warned that rising shipping costs due to disruptions in the global supply chain were hurting profit margins.
The company, which sells premium tonics and drink mixers, said it benefited from strong sales in the United States during the six-month period ended June 30.
The results come two months after the group raised its annual revenue forecast, betting that people are stocking up their fridges for the summer and growing demand for bars and restaurants.
However, global supply bottlenecks at ports and warehouses, in part due to increased consumer demand as countries emerge from lockdowns, have pushed up shipping prices, delayed shipments. orders and increased costs for companies in all industries.
An overwhelming shortage of truck drivers is also adding to the problem.
Fevertree said supply issues will likely extend to 2022.
The company addressed the issues by increasing shipments to its key US market, creating a local inventory, and working with its UK logistics partner to manage the availability of truck drivers during peak periods, moves that increased expenses. , did he declare.
Many of Fevertree’s UK peers across industries including large industrial companies and retailers like Ocado OCDO.L and Dunelm DNLM.L are also facing supply disruptions.
Fevertree said half-year revenue jumped 36% to 141.8 million pounds ($ 196 million), while core profit climbed 23% to 29.2 million pounds. Gross profit margin, the proportion of profit made over sales, fell to 44.1% from 46.8% a year earlier.
($ 1 = 0.7236 pounds)
(Reporting by Sachin Ravikumar in Bangalore; Editing by Shounak Dasgupta)
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