As Fevertree Drinks (AIM:FEVR) serves up full-year results next Wednesday the company is facing headwinds that will impact the group’s top line this year and possibly beyond, according to analysts at UBS.
The maker of tonics and mixers previously stated that top-line growth would be boosted by sales in the US.
However, industry research from NielsenIQ suggested that the British company has not been making progression in its tonic water products.
This, UBS believes, could damage earnings this year while providing a headwind in the next financial year.
Prices between Fevertree’s premium products and those of long-time competitor Schweppes have reduced over the last year.
Analysts at the bank are cautious that if Fevertree were to raise prices further, this could dampen progress later this year.
Another headwind the drinks maker has warned on is the cost to manufacture its glass bottles rising as a result of higher energy costs.
FeverTree previously 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 London-listed company warned that elevated energy costs across Europe on glass bottle prices would be “material” this year.