(Reuters) -British tonic maker Fevertree Drinks posted an annual profit in line with estimates, buoyed by a robust performance of its U.S. market and increased regional production to offset inflationary pressures due to elevated glass-making costs.
The company, which was founded in 2003, had struggled with rising glass costs in Britain due to energy price hikes following the Russia-Ukraine conflict.
This led to Fevertree Drinks raising its prices and boost U.S. glass production, helping it overcome the cost pressures. Its new glass contracts and lower Trans-Atlantic freight rates are expected to help profit growth in 2024.
The London-based company, which sells most of its drink mixers in glass bottles, said on Tuesday its adjusted core profit was at about 30.5 million pounds ($38.59 million) for the full year ended Dec. 31, meeting a company provided analysts' consensus of 30 million pounds.
It said in a statement that the New Year has been in-line with its expectations so far, encouraging the company to reiterate its forecasts for the year.
Separately, Irn-Bru maker A.G. Barr's reported profit before tax of 51.3 million pounds for the year ended Jan. 28, beating analyst expectations of 48.84 million pounds, on price hikes and strong demand for its cocktail mixes and soft drinks.
($1 = 0.7905 pounds)