Fever-Tree’s sales joy as it branches out across the US
FEVER-TREE’S SHARES rose on Tuesday after the drinks company posted impressive sales growth and said it would be “comfortably” ahead of its financial targets for the year.
Revenue for the six months ended June 30 soared 45 per cent, from £71.9m to £104.2m.
In the UK, sales increased by 73 per cent to £58m, while in the US sales rose 15 per cent to £15.1m. Sales in Europe climbed by 17 per cent to £25.8m. Adjusted earnings before interest, tax, depreciation and amortisation were up 35 per cent to £34m over the half year.
Fever-Tree’s shares were up by more than 11 per cent after the announcement.
Tim Warrillow, chief executive of Fever-Tree, said: “The first half of 2018 has been one of major progress for Fever-Tree.
“The group delivered a strong performance, most notably in the UK, as we continue to drive and lead the evolution of the wider mixer category.
“Furthermore, our relationships with key customers and spirits partners mean we are increasingly well-positioned as the growing move to premiumisation and long-mixed drinks continues to develop across the globe.”
The drinks firm has moved to take control of its operations in the US, and now manages its own marketing, sales and distribution over the continent.
It has now signed a distribution deal with Southern Glazer’s Wine and Spirits, the largest wine and spirits distribution firm in the US, to help it to deliver Fever-Tree’s products across 29 US states.
Fever-Tree has also been launching new products, with the addition of a low-calorie range in the UK.
Russ Mould, investment director at AJ Bell, said: “Fever-Tree is a true British success story, showing how it is possible to take a seemingly commoditised product, introduce a higher-quality version and shake up a market where the previous leader, Schweppes, had its eye off the ball and didn’t have sufficient barriers to block new competition.”