Premium mixers firm Fever-Tree has reported strong sales growth across all key markets in the first half of its financial year, with revenue up 36% year-on-year to £141.8 million (€165.96 million).
Off-trade sales exceeded expectations across regions, remaining above pre-COVID levels, with Fever-Tree consolidating its market-leading position in the UK, US, Europe and the rest of the world.
As markets started to recover during the second quarter, on-trade sales also performed well, the company noted.
'Increasing Brand Strength'
Tim Warrillow, CEO of Fever-Tree, commented, "Our ambition and confidence in the global opportunity continues to grow, and we have been encouraged by the initial re-opening of the on-trade, the ongoing strength of the off-trade with sales exceeding pre-COVID levels across all our regions, as well as the response to our new product launches, all of which is a testament to our increasing brand strength, growing presence, marketing investments, and relationships across the industry."
Gross profit for the period increased 28% year-on-year, to £62.5 million, while gross margin declined 270bps to 44.1%.
The company attributed the decline in gross margin to the ongoing global logistics disruption and cost pressures, notably concerning elevated trans-Atlantic freight charges and US storage costs.
The company's adjusted EBITDA grew 23% in the first half, to £29.2 million, while the adjusted EBITDA margin declined 220bps to 20.6%.
The decline is mainly due to the dilution in gross margin, coupled with maintained levels of underlying operating expenditure.
Divisional Performance
In the UK, revenue increased 4% year-on-year to £50.3 million, while the uS registered a 32% growth in revenue to £36.2 million.
Total revenue in Europe grew 102% (+79% on a like-for-like basis, excluding GDP) to £41.3 million.
In the rest of the world, Fever-Tree saw revenue up 73% to £14.0 million.
Highlights
In the first half, the company launched Premium Soda range in the UK on-trade, Lime & Yuzu Soda and Distillers Cola in the US, and Rhubarb & Raspberry Tonic across Europe.
The company has scaled up glass bottling capabilities in the US to full capacity on the West Coast, and plans to commission East Coast bottling during the second half of the year.
It also continued the integration of GDP in Germany, following the acquisition last year, which is already contributing well to Fever-Tree's growth in the market.
Outlook
Warrillow believes that the business is emerging from the pandemic "in a very strong position" and is well placed to deliver its plans for long-term growth despite the existing material impact due to COVID-19.
He added, "Looking ahead, the long-term opportunity for Fever-Tree continues to be enhanced by the structural trends we are seeing, including the growing interest in premium mixers and spirits, and the popularity of long mixed drinks.
"These trends are being supported by our retail and spirit partners, and Fever-Tree's ability to capitalise and drive this opportunity is unmatched by any other premium mixer brand."
