Mixers brand Fever-Tree Drinks has reported a 14% increase in revenue in the half year to 30 June, according to interim results published by the group.
Its UK business reported a 6% increase in revenue, while the US was up by 11% and Europe by 27%, with 'consumer demand remaining strong', particularly in the US and Southern Europe.
The group's margin took a 670bps hit, however, as pricing actions and an improvement in sales mix 'only partially mitigated' rising inflationary and product cost headwinds, the group said.
Fever-Tree reported total revenue of £160.9 million (€185.8 million) for the period, with adjusted EBITDA coming in at £21.9 million (€25.3 million).
'Robust Revenue Performance'
"Fever-Tree has delivered a robust revenue performance in the first half of 2022, with a particularly strong performance in Europe as the on-trade recovered," commented Tim Warrillow, chief executive.
"Alongside driving topline growth, the business remains extremely focused on mitigating the industry-wide cost impacts and whilst we are still highly mindful of the extreme volatility impacting energy-related and logistics costs, we do expect to see a gradual decrease in our exposure over the medium term."
Full-Year Forecast
Looking ahead, the business noted that 'uncertainty and the risk of disruption remains elevated', adding that it remains confident in its ability to deliver long-term sustainable growth.
It reiterated its revenue guidance range of £355 million (€410 million) to £365 million (€421.6 million) for the full year, with a gross profit margin in a range of 33% to 35%, and an EBITDA range of c. £37.5 million to £45 million.
© 2022 European Supermarket Magazine – your source for the latest A Brands news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
