- Fevertree’s full-year revenue rose 6% to £364.4mn, ignoring exchange rate impacts
- Increased US market share, as revenue in the region grew 24%
- Full-year underlying cash profit (EBITDA) of £30mn expected
Aarin Chiekrie, equity analyst, Hargreaves Lansdown:
“Fevertree’s full-year results were anything but dull, as the group delivered a somewhat mixed performance. Revenue bubbled higher thanks to successful expansion in its growing US and European markets, capturing market share in the process. But there was a small decline in UK sales – it turns out there is a cap on how much premium tonic the group can sell, and it looks like Fevertree has reached it in its home market. But thanks to the wide range of products the group has on offer, Fevertree remains the clear leader in the UK mixer category.
Around 80% of the group’s sales are bottled in glass, and fluctuations in energy prices have wreaked havoc on profits in the past. But Fevertree’s now locked in prices on its energy and shipping contracts, meaning there should be no nasty surprises in the near term. Couples with cost-cutting initiatives elsewhere, margins look to be on the mend, helping underlying cash profits double in the second half of 2023. Although this might be too little, too late as full-year underlying cash profits look set to come in at around £30mn, right at the bottom of its recently lowered £30-36mn guidance range.”
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