Sept 11 (Reuters) - Tonic maker Fevertree Drinks ( FQVTF )
reported a 15% fall in its first-half pretax profit on
Thursday, pressured by sluggish UK sales to bars and restaurants
and lower U.S. margins, partly due to profit-sharing with
partner Molson Coors ( TAP/A ).
A majority of Fevertree products sold in the United States
are currently produced in Britain, after the beverage maker
wound down a major U.S. bottling arrangement ahead of its
partnership with Molson Coors ( TAP/A ) earlier this year.
"While this has exposed the partnership P&L to a tariff
impact, we are jointly working hard to mitigate this impact
ahead of the prospective onshoring of U.S. production in the
medium term," FeverTree said in a statement.
In July, Fevertree said it would equally split costs of the
10% U.S. tariffs on UK imports with brewer Molson Coors ( TAP/A ),
as part of a partnership that began in January.
Improvements in its global supply chain, procurement
processes alongside the prospective onshoring of U.S. production
by Molson Coors ( TAP/A ) over the medium term would allow for margin
recovery over time, the company said.
Fevertree reported a first-half pretax profit of 11.2
million pounds ($15.14 million), compared with 13.2 million
pounds a year earlier.
Still, the company's total adjusted sales inched 2% higher
to 172.2 million pounds, on constant-currency basis, supported
by stronger sales of ginger beers and premium soft drinks.
($1 = 0.7399 pounds)