Fevertree Drinks (AIM:FEVR) PLC said that higher costs to cope with supply chain disruption will keep weighing on profits.
The posh tonic producer expects “only a marginal improvement” in underlying earnings (EBITDA) margin next year and reiterated revenue guidance of £295mln-£304mln as recovery continues.
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The group reckons the high trans-Atlantic freight charges and US storage costs will continue into 2022.
The on-trade channel, made of restaurants and bars, continues to improve as restrictions are eased across its markets.
The off-trade channel, which supplies shops for at-home consumption, stays strong as more people prefer to have a cocktail rather than wine or beer when relaxing in the house.
In the six months to 30 June, total revenue climbed 36% to £141mln, with UK up 4%, US up 32%, Europe like-for-like up 79% and all remaining markets soaring 73%.
Adjusted EBITDA was 23% higher at £29mln with a 20.6% margin.
The AIM-listed giant declared a 5.52p dividend, up 2% from last year, and sat on a cash pile of £133mln at year-end.
“We also suspect the incredibly strong growth reported this half will moderate over the rest of the year, as customers complete their re-stocking and we exit pass the strictest lockdowns comparators from 2020,” analysts at Hargreaves Lansdown said.
“Having said that progress in the US in particular is not to be sniffed at, and if current momentum can be maintained then future growth prospects look bright for a group that not long ago looked like it was in danger of outgrowing its tank.”
Shares edged 1% higher to 2,168.73p on Wednesday morning.