Fever-Tree expects 73% year-on-year growth

24th January, 2017 by Kristiane Sherry

Premium tonic and mixer brand Fever-Tree has said it expects to post 73% year-on-year sales growth, with global expansion still in the “early stages”, according to the firm’s CEO.

In a trading update, the UK-based company said its 2016 full-year revenues will hit £102.2 million (US$127.3m), with “strong” first-half growth accelerating in H2.

UK sales performed “exceptionally well”, will full-year revenues expected to be 118% up on 2015 values. “Particularly notable growth” was achieved over the Christmas period, the company added.

Continental Europe performed “well” with sales up 39%, while US sales are expected to end the year up 55%.

Sales growth across the rest of the world also “accelerated”, with full-year revenues expected to grow 88% year-on-year.

Free cash flow generation and balanced sheet “remained strong” over the period, with the company adding its net cash position is expected to be ahead of board expectations.

“We are delighted with our performance in 2016,” said Tim Warrillow, Fever-Tree co-founder and CEO.

“Fever-Tree continues to gain market share in both the on- and off-trade and while we have experienced strong growth across all regions, our performance in the UK has been particularly notable culminating in a very strong Christmas period.

“Fever-Tree continues to pioneer and lead the premium mixer category. We believe the global opportunity remains in its early stages and will continue to be supported by the long-term premiumisation of the spirits sector as well as the growing movement towards mixed and long drinks. As a result, the board remains confident of the future outlook for the business.”

The company will announce its preliminary results on 21 March 2017.

Fever-Tree’s H1 interim results showed revenue growth of 69% to £40.6m (US$50.6m) in comparison to the first half of 2015, when sales stood at £24.1m (US$26.6m).

One Response to “Fever-Tree expects 73% year-on-year growth”

  1. Definitely great news for the team at Fever Tree with more opportunities for global expansion.

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