Fever-Tree 2017 fiscal results to smash forecastsBy Melita Kiely
Fever-Tree has once again increased its 2017 forecasts and now expects its full-year revenue to reach £169 million (US$238m) – a 66% increase on the previous year.
The carbonated mixed producer said it has delivered another period of “very strong” growth, and following a strong festive period the company expects its full-year results to be “comfortably ahead of market expectations”. This is the second time in two months that Fever-Tree has updated its trading forecast.
Sales during the second half of the year are also expected to have risen by 58% compared to the same period in 2016.
In the UK, full-year revenue is expected to be 96% higher than 2016. Throughout continental Europe, full-year revenue is forecast to increase by 42%.
Fever-Tree also hailed “strong revenue growth” in the US, and expects a 39% increase in full-year revenue in the region. The company praised the opening of its North American office and the appointment of Charles Gibb as North American CEO for the increase, and stressed its “ambition and commitment” to the North American market.
Rest of the world sales growth was also faster in 2017, and full-year revenue is expected to be approximately 57% ahead of 2016.
Fever-Tree will announce its preliminary financial results on 13 March.
Tim Warrillow, co-founder and CEO of Fever-Tree, said: “While we have seen strong growth across all region, our performance in the UK over the Christmas period was once again exceptional.
“Our growing range of mixers and formats are appealing not only to our loyal customers but also bringing consumers back to the category and importantly attracting a new younger audience.
“There is clear evidence that the same trends of premiumisation and mixability that we’ve previously highlighted are accelerating and we are increasingly excited by the global opportunity this presents particularly as we transition to our own operations in the US.”
In July last year, Fever-Tree more than doubled its profits in the first half of 2017, reporting strong growth across all regions and channels.