Fevertree shares run out of fizz on margins warning
FEVERTREE DRINKS
1,077.00p
10:59 25/04/24
Shares in Fevertree Drinks plunged on Thursday after the company said margins would be hit harder than expected due to higher costs and logistics issues.
Beverages
21,998.04
11:05 25/04/24
FTSE AIM 100
3,641.66
11:15 25/04/24
FTSE AIM 50
3,973.47
11:15 25/04/24
FTSE AIM All-Share
755.26
11:15 25/04/24
The maker of high-end tonic mixer drinks guided for margins to stay flat for 2022 and core earnings of between £69m £72m along with revenue in the range of £355m-£365m.
“Cost headwinds in 2022 will be more significant than we anticipated, and whilst we are employing a range of mitigating actions, margins are expected to remain broadly flat in 2022,” the company said in a trading statement.
However, Fevertree did report higher sales in its off-trade, or non-bar, business as people consumed more cocktails at home and forecast the trend to carry on even as Covid-19 restrictions are lifted.
“We expect Off-Trade demand to remain at higher levels than pre-pandemic and are well placed to benefit from this sustained shift in consumer behaviour,” the company said.