Fever-Tree, the popular drinks-maker, has managed to double its earnings despite economic challenges.
The company, known for its tonic waters and mixers, revealed that it had doubled its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in the second half of its financial year. This boost took overall earnings to around £30 million for the period, which was in line with what Fever-Tree had predicted for its shareholders.
Despite cost-of-living pressures affecting its customers, the company still managed to increase its market share based on the value of the products it sold. The firm reported strong sales in pubs and restaurants over Christmas, particularly in the UK.
Its new Espresso Martini mixer was highlighted as a standout performer. CEO Tim Warrillow said: "The Fever-Tree brand has performed well in 2023, growing our market share in all of our key markets, despite a challenging macroeconomic environment." Although UK revenue dipped by 1% to £114.8 million, US revenues rose by 22% to £117 million.
This made the US the company's largest market for the first time. Mr Warrillow, the boss of Fever-Tree, added: "The US ended the year as our largest region, where we have extended our leadership position in both the tonic and ginger beer categories."
He also stated that their new Espresso Martini mixer was a hit over Christmas in the UK. Despite some setbacks in Germany and Australia, he remains confident about growth in 2024.
Fever-Tree predicts a 10% rise in brand revenue this year, with total group revenue expected to grow by 8%. The company believes new glass contracts and lower transatlantic freight rates will boost gross margins this year.
In other drinks news, Britvic reported an 8.1% rise in revenue to £443.5 million for the last quarter of 2021. The company saw a significant increase in Brazilian revenues, thanks to a recent acquisition. Changes in France offset a decline in product sales, but revenue still rose by 1.1%. In the UK, revenue was up by 6.9%.
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