Fevertree Drinks (AIM:FEVR) reported an 11% uptick in revenue for 2022 but warned that the high energy prices across Europe will make glass production more expensive in 2023.
According to a pre-close trading statement, revenue in the 12 months to 31 December 2022 was £344.3mln compared to £311.1mln the year before, with UK sales contributing £116.2mln towards the total.
"2022 has seen the FeverTree brand continue to gain traction and prominence across the globe resulting in double-digit revenue growth and profits in line with expectations," said chief executive Tim Warrillow.
Looking ahead, the carbonated mixers supplier said it remains confident in delivering revenue growth in 2023, setting guidance between £390mln and £405mln, representing 13% to 18% growth.
However, the London-listed company warned that the impact of elevated energy costs across Europe on glass bottle prices would be "material" this year .
FeverTree said 80% of its mix is in glass bottles and with energy costs three times higher than in 2021, this will directly impact the cost of manufacturing glass bottles and raw materials.
The group forecasts that the direct energy component of glass manufacturing alone represents a £20mln additional cost in 2023 compared to the glass pricing in the first quarter of 2022.
As a result, the group expects to deliver an underlying earnings (EBITDA) guidance range of £36mln to £42mln, in line with 2022.
“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,” said Warrillow.