Mixer maker Fever-Tree has slashed its profit forecast for the year after being hit hard by soaring costs and labour shortages.
Shares in the tonic manufacturer have today plunged by as much as 30% to its lowest in around six years, following the news that the drinks firm has adjusted its full-year operating profits to between £37.5 million and £45 million.
Previous predictions were between £63 million and £66 million.
The profit warning came as the group revealed that total sales rose by 14% to £160.9 million over the six months to the end of June.
Tim Warrillow, chief executive officer of Fever-Tree, said: “While we are seeing positive top line performance and expect to deliver good revenue growth for the full year, the challenging logistical and cost headwinds we highlighted previously have significantly worsened in recent months and we now expect them to notably impact our full-year margins.”
READ MORE: Fever-Tree mitigates cost pressures as inflation soars
Fever-Tree told shareholders that congestion at ports and a lack of staff in the US had also had a negative effect on both production and export numbers.
It also highlighted that industry-wide issues regarding the supply of glass and wider cost rises meant its profits would be below previous targets.
Warrillow added: “The business is working on a large number of initiatives, and more closely than ever with suppliers throughout our supply chain, to mitigate the transitory headwinds and at the same time ensure we can satisfy the strong demand we are seeing in our growth regions.
“Despite the current challenges of the volatile logistical and cost environment, we continue to make good progress across our regions.
“The strong and growing consumer demand for the brand, our exciting pipeline of innovation, and the growing interest in long-mixed drinks, gives us more confidence than ever in the long-term opportunity.”
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