Fever-Tree to ‘comfortably’ exceed full-year forecast

Tonic water producer Fever-Tree has reported a 45% revenue increase during the first half of 2018 and forecasts full-year sales will “comfortably” surpass expectations.

Fever-Tree has hailed “strong growth” in H1 2018

In the group’s interim results for the first six months to 30 June 2018, Fever-Tree said revenues reached £104.2 million (US$136.6m) – up from £71.9m during the same period in 2017.

The group hailed yet another “period of exceptional growth” in the UK, which saw revenues hit £58m – a 73% increase on the first half of 2017.

Fever-Tree said this was bolstered by the continued trend for premiumisation across the drinks industry and the growing popularity of long mixed drinks. It also noted that the UK mixer category is the “fastest growing category” in the carbonated soft drinks sector, rising 31% at retail in the 12 months to June 2018.

Tim Warrillow, CEO of Fever-Tree, said: “The first half of 2018 has been one of major progress for Fever-Tree. The group delivered a strong performance, most notably in the UK, as we continue to drive and lead the evolution of the wider mixer category.

“Furthermore, our relationships with key customers and spirits partners mean we are increasingly well positioned as the growing move to premiumisation and long mixed drinks continues to develop across the globe.

“We have successfully launched our wholly owned US operations with a talented team recruited and now in place. The exclusive distribution agreement with SGWS [Southern Glazer’s Wines & Spirits], the largest North American wine and spirits distribution company, is a significant endorsement and provides a strong platform for Fever-Tree US in 2019 and beyond.

“Given the strong performance in the first half of the year, the board anticipates that the outcome for the full-year will be comfortably ahead of its expectations.”

Regional performance

In the US, Fever-Tree saw revenues climb 15% to £15.1m during what it described as the first half of a “transitional year” in the country.

The transition from the group’s US agent to becoming a wholly-owned operation began on 1 June 2018, and the Fever-Tree US team is now directly managing marketing, sales and distribution across the country. The exclusive on-trade deal with SGWS covers 29 states and will come into effect on 1 August 2018.

In Continental Europe, revenues rose 17% to £25.8m, with notably “strong growth” in Germany, Italy, Netherlands, the Nordics and Ireland.

Throughout the rest of the world, sale grew 67% demonstrating “strong potential” in the medium- to long-term period, Fever-Tree said.

Fever-Tree also appointed three new non-executive board members during H1.