Posh tonic maker Fevertree Drinks (AIM:FEVR) PLC has confirmed its return to growth strategy will result in increased prices as it battles to mitigate the rising cost of glass.
Looking ahead, the drinks company maintained its sales guidance range of £390-£405mln, expressing confidence in achieving 13% to 18% year-on-year growth.
It cited ongoing momentum across its 'growth' regions, particularly in the US, and a return to growth in the UK for the relatively bullish outlook.
Meanwhile, the prelims reflected a surge in energy and commodity prices following Russia's invasion of Ukraine last year, which has forced companies worldwide to find ways to contain expenses, particularly in packaging.
Fevertree stated that it would navigate these difficult conditions by passing on some of the cost impacts through price adjustments across regions while concentrating on margin improvement initiatives.
It reported a 37% decline in its adjusted core profit for the year ended 31 December 2022, totalling £39.7mln. Revenues rose 11% compared to the previous year, reaching £344.3mln, in line with analysts' expectations.
To combat significant inflationary pressures, Fevertree said it will employ a combination of regional pricing strategies, cost-saving measures and an increase in local US production.