Premium mixer brand Fever-Tree lowered its annual revenue growth forecast today (12) after revealing that the wet weather at the start of the summer season dampened its sales.
Total revenue over the six months to 30 June edged up 2 per cent to £170.6m after robust growth in the US offset challenging conditions in other regions. However, the group stated that it had continued to make strategic progress, increasing the brand’s share across all key markets, as well as delivering margin improvement.
In the UK and Europe, the first-half sales performance was impacted by the unseasonable weather, as well as differences in the phasing of European distributor orders year-on-year. However, Fever-Tree noted that it saw strong summer trading post the period-end, with growth of 13 per cent in July and August.
The British company now expects revenue growth of about 4-5 per cent for the full year, lower than the 10 per cent initially projected in March.
Commenting on the results, Chief Executive Tim Warrillow said, “The Fever-Tree brand performed well against a tough market backdrop. We continued to deliver double digit revenue growth in the US at constant currency, as well as a strong performance in our ROW region.
“The first half performance in the UK and Europe was impacted by unseasonable weather at the start of summer alongside distributor order phasing in Europe, but we have seen a strong improvement in these regions as the summer belatedly arrived”.
“We have delivered substantial margin improvement, resulting in a c.80 per cent increase in EBITDA year-on-year, as well as driving share gains against the competition across all our regions, demonstrating the growing strength of the Fever-Tree brand.
“We’re optimistic of an acceleration of growth across the second half of the year and have seen a much more positive trading performance in July and August.
“Looking further ahead, our continued investment in the brand and focus on innovation in recent years ensures we are better positioned than ever to capitalise on the long-term drink trends, both in terms of continued spirit growth and premiumisation but also as adults continue to seek out a broader range of premium drinks, both with and without alcohol.”
