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Tonic maker Fevertree (FEVR.L) reported a fall in profit for the first half of the year despite strong demand in Europe and the U.S., as inflationary pressures and continued exposure to Trans-Atlantic freight costs bit into earnings.

The London-based company also said availability of glass will be restricted in the second half the year and is expected to hurt revenue.

“Labour shortages at our East Coast bottler in the U.S. have impacted our ramp up,” Fevertree said.

The company said it was working with suppliers to secure its glass requirements for 2023.

It added the labour shortages have resulted in greater production volumes required from the UK, which has increased the group’s exposure to sea freight costs “in the short term”.

Fevertree reiterated it expects full-year core profit to be in the range of 37.5 million pounds ($43.94 million) to 45 million pounds.

The group said uncertainty and the risk of disruption for the year remain high as cost pressures continue to impact its business.

The London-based company said its adjusted core profit for the six months ended June 30 was 21.9 million pounds, compared with 29.2 million pounds the previous year.

($1 = 0.8535 pounds)