Fever-Tree has forecast a rise in its 2023 revenue as the tonic maker expects its business to continue expanding in the United States and a return to growth in its established market in the UK.
Still, the London-based mixers firm said inflationary cost pressures are expected to remain in 2023 with further double-digit percentage hikes across its key input costs including filling fees, ingredients and packaging.
Soaring inflation in the UK has induced a cost-of-living crisis and a nationwide rail strike over wages disrupted sales for hospitality firms and weighed down on market demand.
The company, whose full-year revenue in the UK dropped 2% from a year ago, saw a notable impact from the rail strikes in Britain in the run-up to Christmas, a period that is traditionally a very strong trading period.
Glass Bottle Pricing
Elevated European energy prices are expected to materially impact glass bottle pricing in 2023, the tonic maker said.
Fever-Tree expects revenue for 2023 to be between £390 million (€443 million) and £405 million (€460 million), higher than the £344.3 million (€391 million) it reported a year ago.
'Gain Traction And Prominence'
"2022 has seen the Fever-Tree brand continue to gain traction and prominence across the globe resulting in double digit revenue growth and profits in line with expectations," commented chief executive Tim Warrilow.
"Furthermore, the brand continues to increase its clear global market leadership position and remains the primary driver of this increasingly prominent international drinks category.
"Looking ahead to 2023, we remain very confident in delivering strong top line growth, most notably in the US. 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."
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